Press Release: New Report Reveals Systemic Barriers Holding Back California's Diverse-Owned Small Businesses
New Report Reveals Systemic Barriers Holding Back California's Diverse-Owned Small Businesses
SACRAMENTO, CA (September 18, 2024) — A new research report commissioned by the California Asian Pacific Chamber of Commerce, California Hispanic Chambers of Commerce, and California African American Chamber of Commerce highlights significant challenges faced by small enterprises in California owned by racially and ethnically diverse individuals. Despite their substantial presence—making up nearly half of California’s 4.1 million businesses—the research found that Diverse-owned Small Businesses (DSBs) face barriers such as limited access to capital, high barriers to entry to lucrative sectors, and challenges to scaling and growth. As a result, DSBs contribute less than their proportionate share of California’s economy, and the number of minority-owned firms lags other states, when measured relative to population.
The new report, completed by Beacon Economics and funded by Southern California Gas, San Diego Gas and Electric, and Kaiser Permanente, is the second in a pioneering series launched by the California Office of Small Business Advocate (CalOSBA) in 2023. The report uses comprehensive datasets from the American Community Survey and the Bureau of Economic Analysis to assess the economic, fiscal, and community impacts of DSBs. It identifies systemic barriers that hinder the growth and potential of these businesses, a problem aggravated but not solely caused by the COVID-19 pandemic.
“The findings indicate that DSBs face unique challenges that require tailored investments, technical assistance, and policy interventions to unlock their full economic potential,” said Pat Fong Kushida, President and CEO of the California Asian Pacific Chamber of Commerce – one of the three project conveners. “The new report underscores the need for targeted strategies to address the diverse needs within this vital segment of California’s business community.”
“Our research has shown that the same employment barriers that disadvantage many marginalized communities often prevent minority businessowners from being able to scale up their businesses,” said Christopher Thornberg, Founding Partner of Beacon Economics. “To effectively address these barriers and ensure long term success, it is critical to root future public policies and initiatives in data and research.”
A sample of the key findings from the 2024 report:
- DSB’s economic contribution was approximately half of its employment figures. In 2019 and 2020, California's minority-owned small businesses contributed $443 billion and $414 billion, respectively, to the state's economy, representing 8% of its total output. These businesses support 3.6 million jobs annually, equating to 15% of state employment, and their contribution to GDP in 2020 surpassed the economic output of 23 other U.S. states.
- DSB’s remain a source of untapped potential for California. Supporting their growth would translate into significant new job, business, and tax growth across the state. However, this report shows diverse small businesses are having a difficult time scaling and growing when compared to other US states. For instance, California has fewer minority-owned small businesses relative to its population than Florida, New York or Texas.
- There is significant potential for DSBs to boost their revenues and economic impact by integrating into the government procurement supply chain. Aligning state policies with DSB sectors can create mutual benefits, enhancing both business growth and overall economic development;
- Addressing the significant data gaps that exist about DSBs through direct surveys and systematic monitoring will enable effective policy development and enhance DSBs' economic impact.
“This very detailed health check on diverse small business provides clear evidence that these firms face persistent systemic barriers, including limited access to capital and high entry barriers in lucrative sectors, which hinder their growth,” said Julian Canete, President and CEO of the California Hispanic Chambers of Commerce. “Despite these challenges, this research shows that DSBs demonstrate significant entrepreneurial drive crucial for California’s economic vitality and diversity.”
“We are extremely grateful to the leaders of Kaiser Permanente, Southern California Gas, and San Diego Gas and Electric for their financial and technical support that enabled us to unpack the widespread impact that our diverse small businesses are having in California. This work would be impossible without them,” said Ahmad Holmes, President and CEO of the California African American Chamber.
To obtain a copy of the full report, click here.
Partner Spotlight: Metrix Learning
About Metrix Learning
Metrix Learning stands at the forefront of online education solutions, dedicated to transforming the public workforce landscape. With a mission to cultivate purposeful careers and maximize returns on workforce investments, Metrix Learning tailors its offerings to meet the diverse needs of today’s job seekers, including the unemployed, underemployed, and those looking to pivot their careers.
Metrix Learning’s roots trace back to NY Wired for Education, where it emerged as a pioneering force during the 2008 recession. By introducing a web-based learning management system in collaboration with New York-based Workforce Development Boards, Metrix Learning made an immediate impact on workforce prosperity. Today, the company’s reach extends to nearly half of the United States, with over 130 Workforce Investment Boards or government-funded partners, 20 states reporting significant drops in unemployment rates, and more than 700,000 learners benefiting from its programs.
Founder and CEO Brian Lee, inspired by his father’s dedication to public service with the New York State Department of Labor, has continued the family legacy by combining technology, education, and business to empower workers. Under Lee’s leadership, Metrix Learning has become the go-to solution for workforce development across the nation.
A Commitment to Workforce Solutions
From its inception in 2008, Metrix Learning has been committed to providing solutions grounded in labor market statistics and geographic data. Its flagship initiative, SkillUp America, offers a user-friendly, self-paced platform that aligns with the strategic goals of local communities. Through SkillUp America, learners can enrich their skill sets in target industries, align their career paths with market demands, and demonstrate tangible performance outcomes.
Empowering Public Sector Partners
Metrix Learning offers public sector partners the tools to develop customized training plans based on local needs and leverage pre-constructed career pathways to meet demand. Their online portal serves as a virtual extension of resources, connecting directly with communities and complementing existing job seeking and employer services. By aligning with the Workforce Innovation and Opportunity Act (WIOA) and recognizing the importance of a skilled talent pipeline, Metrix Learning ensures that communities are equipped to meet the challenges of today’s labor market.
Driving Economic Prosperity
Metrix Learning’s impact extends beyond individual learners; it plays a vital role in strengthening the economic prosperity of local communities. Through SkillUp America, Metrix Learning partners with community-based organizations (CBOs) to expand access to upskilling resources, fostering collaboration between CBOs and community leaders. This initiative not only enhances training opportunities for local partners and their staff but also expands CBO networks to compound the benefits of upskilling.
The Future of Workforce Development
As the workforce continues to evolve, Metrix Learning remains committed to adapting its solutions to meet emerging challenges. From addressing shifting workplace cultures to overcoming skilled worker shortages, Metrix Learning provides the tools and resources needed to build resilient, thriving communities. With its data-driven approach and innovative solutions, Metrix Learning is poised to continue leading the way in workforce development, ensuring that every community has the opportunity to succeed in the modern economy.
Conclusion
Metrix Learning is more than an education provider; it’s a catalyst for change in workforce development. By offering customized, data-driven solutions that align with the needs of local communities, Metrix Learning empowers individuals, businesses, and public sector partners to thrive in an ever-changing job market. As the company continues to innovate and expand its reach, Metrix Learning is set to play a pivotal role in shaping the future of workforce education across the United States.
Unlock your potential with Metrix Learning, a leader in workforce development and education. Through our partnership with Metrix Learning, you can access discounted, customized training solutions that align with your community’s needs. Visit our website to learn more and take the first step towards empowering your business and community.
Press Release: California and Sacramento Asian Pacific Chambers of Commerce Name New Vice President of Public Policy
CALIFORNIA AND SACRAMENTO ASIAN PACIFIC CHAMBERS OF COMMERCE NAME NEW VICE PRESIDENT OF PUBLIC POLICY
SACRAMENTO, CALIF. (April 22, 2024) — The California and Sacramento Asian Pacific Chamber of Commerce (Chambers) are thrilled to announce the appointment of Johnnise Foster-Downs as their new Vice President of Public Policy. Ms. Foster-Downs brings over two decades of experience in political and government affairs to her new role, where she will lead the Chambers’ advocacy efforts and policy initiatives at both local and state levels.
Johnnise comes to the Chambers from PG&E, where she managed Government and Public Affairs. Prior to that, she served as the Municipal Services Manager at Republic Services, overseeing municipal contracts and government affairs for their Sacramento Business Unit. Her extensive background also includes roles as Director of Public Policy at the Sacramento Metro Chamber and Director of Local Government Affairs at the California Restaurant Association.
Pat Fong Kushida, President and CEO of both chambers, expressed her enthusiasm about the new appointment, saying, "Johnnise’s vast experience and proven ability to navigate complex political landscapes make her an ideal fit for this pivotal role. Her dedication to public service and her remarkable track record in advocacy will undoubtedly enhance our efforts to support and empower the diverse small business communities we serve."
In her new role, Johnnise will focus her efforts on promoting fair and equitable policies and fostering strong relationships with key stakeholders to further the Chambers’ mission of inclusive economic development that benefit all communities.
"I am honored to join the CalAsian and SacAsian Chambers and excited to contribute to their mission of advocating for policies that support the success of California’s diverse business community," said Johnnise Foster-Downs. "Through collaboration and strategic advocacy, we can achieve significant and positive changes that benefit all stakeholders."
Business: Flawless Boxing & Fitness
Owner: Janelle and Brandon Gonzales
Location: Long Beach, CA
Video created by Arche Studios
In the city of Sacramento, a unique vision took shape in the form of Flawless Boxing & Fitness. Founded by Janelle and Brandon Gonzales, this gym emerged not just as a boxing training facility, but as a beacon of community, strength, and empowerment.
The Founders’ Journey
Brandon 'Flawless' Gonzáles, a former world-class professional boxer, and Janelle Gonzales, an accomplished boxer and social work professional, combined their passions to create a space that transcends the conventional gym experience. Brandon's storied career in the ring and Janelle's dedication to social work and boxing shaped their approach to Flawless Boxing & Fitness, envisioning it as a hub for personal growth and community development.
Services and Impact: Beyond Boxing
Flawless Boxing & Fitness offers diverse programs, including group sessions, individual training, and competitive boxing, all underpinned by a commitment to youth development and community support. Their programs are designed to empower individuals from all walks of life, building resilience and fostering a sense of belonging.
Overcoming Challenges: The Role of Sacramento MBDA Business Center
Initially, Flawless Boxing & Fitness grappled with typical startup challenges such as funding and establishing meaningful partnerships. A critical point in their journey was the collaboration with the CalAsian Chamber-operated Sacramento MBDA Business Center. This partnership not only provided connections to grant funding that enabled them to purchase resources, equipment, and protective gear for its youth programs, but offered a network of support and training, helping the gym to overcome its early obstacles and grow into a thriving community pillar.
Flawless Boxing & Fitness stands as a testament to the power of vision, perseverance, and the impact of strategic partnerships. The collaboration with the CalAsian Chamber and Sacramento MBDA Business Center has been pivotal in transforming challenges into opportunities, reinforcing the gym’s role as a cornerstone of community strength in Sacramento.
Stay Connected: Follow Brandon and Janelle’s inspiring journey:
Website: https://www.flawlessboxingfit.com/
Instagram: https://www.instagram.com/Flawlessboxing/
Facebook: https://www.facebook.com/flawlessboxingandfitness/
Press Release: Governor Newsom Signs Assembly Bill 258 into Law
Democratizing State Resources to Empower Minority-Owned Businesses in California
SACRAMENTO, CALIF. (October 11, 2023) — The California Asian Pacific, African American and Hispanic Chambers of Commerce celebrated a significant legislative win for California’s small business community – the Small Business Information Act, Assembly Bill (AB) 258, authored by Assembly Majority Leader Emeritus Eloise Reyes, was signed into law by Governor Gavin Newsom over the weekend.
“I introduced AB 258 after listening to my local small businesses to understand how to best serve them. We heard loud and clear that streamlined access to resources like state grants are a priority, and I'm thrilled that Governor Newsom agreed, signing legislation into law that will create the Small Business Portal to support small businesses in the Inland Empire and across California," said Reyes. "I want to express my gratitude to my colleagues in the Legislature and the California Asian Pacific, African American, and Hispanic Chambers of Commerce for their unwavering support in this effort.”
“Small businesses need to have information easily accessible and know what tools may be available to them - information that can help small business owners make decisions to be successful and grow” said Julian Cañete, President of the California Hispanic Chambers of Commerce. “Creating easier access to these various vital tools is what AB 258 will do. Thank you to Governor Newsom for your signature.”
AB 258 will make necessary improvements to support minority-owned businesses and will improve accessibility to state resources for the communities that need it most. Many small businesses in California who are looking to partner with the state do not have the technical expertise to navigate the necessary state processes such as access to technical assistance, the procurement process, and locating grants. Democratizing and illuminating state processes will provide small businesses more opportunities to grow and ensure public resources are reaching the hardest-hit communities.
"We commend the Governor's approval of AB 258, a crucial step to support small businesses” said Ahmad Holmes, Chief Operating Officer at the California African American Chamber of Commerce (CAACC). “As co-sponsors, CAACC is proud to unite with our partners in creating a more accessible business environment. AB 258's Go-Biz web portal will benefit minority entrepreneurs by streamlining access to essential resources. This legislation highlights our commitment to economic growth and equity in California. We thank Assemblywoman Eloise Reyes for her leadership and look forward to empowering businesses and promoting economic equity."
Pat Fong Kushida, President & CEO of the CalAsian Chamber shared, “Our deepest gratitude and appreciation go out to Assembly Majority Leader Emeritus Eloise Reyes, for her commitment in ensuring that California’s small businesses have an equal seat at the table. And to our partners at the California African American and Hispanic Chambers of Commerce - our collective voices have truly made a difference and small businesses up and down the state will have unprecedented opportunities.”
“We applaud Governor Newsom for signing AB 258 and recognizing the small business owners that play a critical role in our economy” said Kushida. “This bill will bring us one step closer to eliminating the accessibility gap and providing the diverse small business community with equal opportunities.”
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About the California Asian Pacific Chamber of Commerce
The California Asian Pacific Chamber of Commerce (CalAsian Chamber) was founded in 2010 to give a voice to the more than 754,000 AAPI- owned businesses in California. Today, CalAsian is the largest statewide ethnic chamber in the state and operates three federal business centers, dozens of programs providing technical and financial assistance to small businesses, and a foundation offering leadership and workforce development programs. Learn more at calasiancc.org
About the California African American Chamber of Commerce
As California’s largest statewide African-American Chamber organization, the California African-American Chamber of Commerce (CAACC) aims to drive economic opportunity and wealth creation for African-American businesses. We aim to connect and harness the collective strength of our statewide network of member organizations to elevate our fiscal health, fostering growth and prosperity for all. Learn more at calaacc.org
About the California Hispanic Chambers of Commerce
The California Hispanic Chambers of Commerce (CHCC) represents over 815,000 Latino-owned businesses in California generating over $100 billion in annual revenue, over 670,000 jobs, and $25 billion in payroll income for the state of California. Learn more at cahcc.com