The orders include titles such as \u201c<\/i>Ending Illegal Discrimination and Restoring Merit-Based Opportunity<\/a>,\u201d<\/i> \u201c<\/i>Ending Radical and Wasteful Government DEI Programs and Preferencing<\/a>,\u201d<\/i> and \u201c<\/i>Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government<\/a>.\u201d<\/i><\/i><\/p>\n In a media briefing on March 7, hosted by Ethnic Media Services, a panel of experts discussed the impacts of the ending of DEI programs on small businesses.\u00a0<\/span><\/p>\n Small businesses make up a vast majority of the U.S. economy\u2014numbering 33.2 million and accounting for 99.9% of all businesses. Of these, over 40% are owned by women, nearly a quarter by immigrants, and around 20% by racial minorities, with Latinos representing a large portion of that demographic.<\/p>\n \u201cThe attack on so-called DEI is really an attack on American entrepreneurship, and this is just the start,\u201d said Dilawar Syed. \u201cThe rollback of federal diversity, equity, and inclusion (DEI) initiatives under former President Trump is expected to significantly impact small businesses across the country.\u201d<\/p>\n These executive actions came alongside a January 27 freeze on hundreds of billions of dollars in federal program funding. In February, under the newly established Department of Governmental Efficiency\u2014led by Elon Musk\u2014federal agencies saw mass layoffs, including a 20% reduction in SBA staff, totaling around 720 employees.<\/p>\n \u201cWe all want to see better efficiency, but this approach of laying off 20% of the workforce \u2014 many of whom are people providing customer service \u2014 without even stepping a foot in these agencies, is just inefficient,\u201d Syed noted. \u201cNow you have even longer wait times to get help.\u00a0 It would affect every single American who wants to start or grow a business.\u201d<\/p>\n On top of staffing cuts, SBA Administrator Kelly Loeffler announced last Thursday that offices in six major cities, including Chicago, Denver, and New Orleans, would be shuttered due to their sanctuary city status.<\/p>\n \u201cThat doesn\u2019t help us serve this unmet need of a rising class of entrepreneurs of color,\u201d Syed added. \u201cAmerican economic competitiveness in the world is directly tied to immigrants pursuing their dreams.\u201d<\/p>\n In fact, as of 2024, nearly half (46%) of Fortune 500 companies\u2014230 in total\u2014were founded by immigrants or their children.<\/p>\n \u201cWe have to uphold our country\u2019s laws, but we\u2019re not talking about reforming proper legal pathways for people to become productive citizens,\u201d Syed continued. \u201cAll we\u2019re doing is choking a very important source of labor in this country by demonizing immigrants.\u201d<\/p>\n The SBA\u2019s diversity quota for federal contracts has also been reduced from 15% to 5%, adding to the difficulty small businesses face in securing approvals\u2014often essential for competing in federal contracting.<\/p>\n Elizabeth Barrutia said the rollback threatens her ability to even participate. \u201cI\u2019m concerned that the very programs we were bidding on will be eliminated now,\u201d she said.<\/p>\n She also pointed to broader ripple effects: \u201cThere\u2019s a trickle-down effect into the whole media landscape I work with. When minority outlets \u2014 print, broadcast, television \u2014 are getting less dollars to market government programs like health, education or financial aid services \u2026 there will be long-term disproportionate outcomes for health equity, educational attainment and financial attainment.\u201d<\/p>\n \u201cInnovation will falter, and innovation is what generates more dollars,\u201d Barrutia warned. \u201cYears ago, they would say multicultural marketing is good for business. Now I\u2019m wondering whether they understood it was a business imperative to begin with.\u201d<\/p>\n Multicultural consumer spending in the U.S. has surged from $458 billion in 1990 to $3.2 trillion in 2021. In 2023 alone, multicultural media spending increased by 5.7%, reaching $34.64 billion\u2014representing 5.3% of total U.S. advertising expenditures.<\/p>\n \u201cThese efforts under the banner of DEI rose up in order to stop discrimination that was ongoing and widespread in favor of white men \u2026 and to ensure that that discrimination is replaced by policies that ensure that people of color and women receive a fair shake in competing for employment or contracts,\u201d said Thomas A. Saenz.\u00a0<\/span><\/p>\n \u201cThis administration\u2019s attack on DEI is about making it easier for those who are inclined to engage in that discrimination in favor of white men, and intimidate those who are interested in taking steps to end that discrimination.\u201d<\/p>\n Dr. Esther Zeledon shared her personal experience with the fallout. \u201cWe\u2019re creating this scarcity mindset of \u2018If I give other people opportunities, then you\u2019re taking away from me,\u2019\u201d she said. \u201cIn my own case, I lost 95% of my contracts across sectors, from human rights to climate science \u2026 I have a PhD in environmental science from Berkeley, and people no longer trust my work.\u201d<\/p>\n \u201cThe language of the executive orders \u2014 that all DEI efforts are wasteful and radical \u2014 politicizes and puts mistrust onto people who have benefited from those programs,\u201d she added. \u201cIt\u2019s not just changing a policy, it\u2019s saying that we don\u2019t have any wrong to correct.\u201d<\/p>\n According to Zeledon, this is a direct assault on social mobility. \u201cIt\u2019s an economic attack on all of us who are seeing a rise in oligarchy in our leadership,\u201d she said. \u201cWe need to open doors for each other if we want to help America be stronger, better, more prosperous.\u201d<\/p>\n <\/p>\n Images provided by Ethnic Media Services.\u00a0<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" The rollback of federal diversity, equity, and inclusion (DEI) initiatives under former President Trump is expected to significantly impact small businesses across the country. In a wave of executive orders issued during his first week back in office in late January, Trump dismantled all federal DEI and affirmative action programs, as well as grants, contracts,…<\/p>\nSpeakers<\/b><\/b><\/h3>\n
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