Small Investments, Big Impacts: How Grants Shape Microbusiness Success

Executive Summary

Grants can play a transformative role in business success, particularly for microbusiness owners facing systemic challenges accessing capital. Capital access is essential for all businesses to grow and thrive, yet access to credit and wealth remains uneven across racial groups. While race-based grants and funds to address access to capital disparities face increasing legal challenges, their impact has been proven. In 2023, the Association for Enterprise Opportunity (AEO) evaluated the results of a business grant program and found that even modest injections of capital – $10,000 grants – can help unleash the potential of Black-owned microbusinesses across the U.S. and build a more equitable and inclusive economy.

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