Supporting Black Businesses Online with Federal Policies and Recommendations

Overview

Author: Fallon Wilson (#BlackTechFutures Research Institute)

Black businesses have been disadvantaged due to racial inequalities, as outlined in what Kapor (2018) refers to as the “Leaky Tech Pipeline,” which examines how intersecting racial tech disparities, such as the lack of access to the high-speed internet, business mentors of color, and non-dilutive capital, affects Black tech businesses’ ability to scale. The lack of digital infrastructure (e.g., access to high-speed internet) to support the growth of non-tech Black businesses into e-commerce further amplifies these disparities while the monopolistic tendencies of corporate giants like Amazon, Apple, and Google use their algorithms to absolve competition from smaller Black firms. Further, by outlining federal policy solutions by which Black businesses can scale and thrive in a competitive online marketplace, including federal policies and recommendations from the Small Business Administration, Federal Communications Commission, and pending antimonopoly legislation (e.g., Ending Platform Monopolies Act), we can exemplify how to help “level the playing field” (e.g., reduce racial tech disparities) for the growth of Black tech businesses in the United States.