As we close the books on 2025, the economic outlook for Minority Business Enterprises (MBEs) is equal parts promising and precarious. The newly released State of Minority Business Report by the Georgia Minority Supplier Development Council (GMSDC) offers a comprehensive and sobering look at where we stand as a business community, as a state, and as a nation.
For Georgia, a top-five state for minority-owned business activity, the trends outlined in the report have immediate implications. Georgia’s MBEs are helping to fuel the state’s economic growth, contributing billions in revenue and employing thousands. Yet even with these gains, persistent structural barriers threaten to hold many back from reaching their full potential.
Between 2018 and 2022, minority-owned employer businesses in the U.S. grew by 26.5%, compared to a 3.1% decline among non-minority-owned firms. Black-owned businesses alone surged 56.2%, and Hispanic-owned firms increased by 40.3%. This is no small feat; it’s the result of tireless entrepreneurship, strategic growth, and community support in the face of adversity.
Still, these businesses remain underrepresented, under-capitalized, and underutilized. Black Americans represent 14.4% of the U.S. population, yet own only 3.3% of employer businesses. In federal contracting, the disparities are more stark: less than 2% of federal dollars went to Black-, Hispanic-, or Asian-owned businesses in 2024.
From inflation to interest rate hikes, the report shows that small and minority-owned businesses have borne the brunt of economic volatility. In 2024, more than 90% of minority business owners reported inflation-related challenges. Access to capital remains a chief concern; minority businesses are more likely to be denied loans, face higher interest rates, and receive a disproportionately small share of venture capital funding.
Despite SBA record-setting small business financing in 2024, capital gaps persist. Less than 0.5% of all venture capital went to Black founders that year; an unsettling stat in a nation that relies on innovation-driven entrepreneurs to drive growth.
The report also connects the dots between climate instability and economic vulnerability. In 2024 alone, the world saw 605 extreme weather events, displacing millions and creating $2 trillion in losses over the past decade. Minority businesses, many of which operate in frontline communities, are especially exposed. Nearly one in five Black-owned businesses in North Carolina reported layoffs directly tied to climate disasters.
Emerging technologies like Artificial Intelligence (AI) offer promise but also highlight digital divides. Many MBEs lack the infrastructure and training needed to fully leverage tools that could boost productivity and scale. Meanwhile, shifts in federal policy and corporate priorities are reshaping the future of Diversity, Equity, and Inclusion (DEI) efforts.
As DEI faces public scrutiny, GMSDC continues to champion inclusive procurement as an economic strategy, not a social program. Smart companies know this. Inclusive sourcing creates jobs, builds stronger supply chains, and expands market reach. One example from California: $7.7 billion in supplier diversity spending by utilities created $15.8 billion in economic output and nearly 60,000 jobs.
Georgia has always punched above its weight in minority business development. But sustaining that momentum will require more than celebration, it demands sustained investment, policy protections, and intentional collaboration.
At GMSDC, we are proud of the progress reflected in the 2025 report. But we are also clear-eyed about the work ahead. Addressing wealth gaps, closing capital access disparities, and scaling minority businesses are not just moral imperatives, they are economic necessities.
As we look to 2026 and beyond, let this report be more than a snapshot. Let it be a rallying cry. Georgia’s minority business community is growing, thriving, and ready for more. Let’s build the ecosystem they deserve.
Learn more at www.gmsdc.org
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