House Democrats will create a caucus on innovation that will consider policies to help lift Black Americans in the workforce.
The caucus, led by Delegate Stacey Plaskett of the Virgin Islands, will focus on removing barriers for Black people to mitigate the gap in entrepreneurship, business ownership and job creation.
“I formed this caucus with the goal of controlling the economic and financial realities that Black innovators face, with a commitment to transforming the status quo and advancing robust policies intended to curb economic ownership and sustainability,” Ms. Plaskett said Tuesday.
Reps. Marilyn Strickland of Washington and Ritchie Torres of New York will co-lead the caucus.
Ms. Plaskett said barriers that hinder Black innovators include inadequate access to capital and a lack of training for Black people in business.
About 4% of Black-owned businesses remain active in their third year of operation, compared to more than 55% of other businesses, according to management consulting firm McKinsey & Co.
Kelly Burton, executive director of the Black Innovation Alliance, which focuses on Black entrepreneurship, lauded the creation of the caucus.
Ms. Burton cited the racial justice protests of 2020 and the Black Lives Matter movement as motivators to invest in uplifting Black workers and creators.
“Race still matters,” Ms. Burton said. “Now is the time for us to meet historic outpouring of civic engagement with equally historic legislative action.”
The caucus aligns with the Biden administration’s agenda on equity, which includes a push to support Black innovators.
President Biden has directed his agencies to use federal purchasing power to expand contracting with Black small businesses.
Mr. Biden also has prioritized increasing Black homeownership and grants to struggling small businesses owned by people of color.
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