{"id":71399,"date":"2025-03-14T10:06:39","date_gmt":"2025-03-14T17:06:39","guid":{"rendered":"https:\/\/lapost.us\/?p=71399"},"modified":"2025-03-14T10:06:39","modified_gmt":"2025-03-14T17:06:39","slug":"how-will-dei-bans-affect-u-s-small-businesses","status":"publish","type":"post","link":"https:\/\/lapost.us\/?p=71399","title":{"rendered":"How Will DEI Bans Affect U.S. Small Businesses?"},"content":{"rendered":"<div class=\"td_block_wrap tdb_single_author tdi_65 td-pb-border-top td_block_template_1 tdb-post-meta\" data-td-block-uid=\"tdi_65\">\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-author-name-wrap\"><span class=\"tdb-author-by\">By<\/span><a class=\"tdb-author-name\" href=\"https:\/\/ethnicmediaservices.org\/author\/selen-ozturk\/\">Selen Ozturk<\/a><\/div>\n<\/div>\n<\/div>\n<div class=\"td_block_wrap tdb_single_date tdi_66 td-pb-border-top td_block_template_1 tdb-post-meta\" data-td-block-uid=\"tdi_66\">\n<div class=\"tdb-block-inner td-fix-index\"><i class=\"tdb-date-icon tdc-font-fa tdc-font-fa-calendar\"><\/i><time class=\"entry-date updated td-module-date\" datetime=\"2025-03-11T09:00:00-07:00\">Mar 11, 2025<\/time><\/div>\n<\/div>\n<div class=\"td_block_wrap tdb_single_subtitle tdi_67 td-pb-border-top td_block_template_1\" data-td-block-uid=\"tdi_67\">\n<div class=\"tdb-block-inner td-fix-index\">\n<p>Since Trump\u2019s termination of federal diversity, equity and inclusion (DEI) initiatives, small businesses nationwide are expected to take a major hit.<\/p>\n<\/div>\n<\/div>\n<div class=\"td_block_wrap tdb_single_featured_image tdi_68 tdb-content-horiz-left td-pb-border-top td_block_template_1\" data-td-block-uid=\"tdi_68\">\n<div class=\"tdb-block-inner td-fix-index\"><img loading=\"lazy\" decoding=\"async\" class=\"entry-thumb\" title=\"Screen Shot 2025-03-08 at 11.50.09 AM\" src=\"https:\/\/ethnicmediaservices.org\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-08-at-11.50.09-AM.png\" sizes=\"auto, (max-width: 2636px) 100vw, 2636px\" srcset=\"https:\/\/ethnicmediaservices.org\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-08-at-11.50.09-AM.png 2636w, https:\/\/ethnicmediaservices.org\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-08-at-11.50.09-AM-300x162.png 300w, https:\/\/ethnicmediaservices.org\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-08-at-11.50.09-AM-1024x554.png 1024w, https:\/\/ethnicmediaservices.org\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-08-at-11.50.09-AM-768x415.png 768w, https:\/\/ethnicmediaservices.org\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-08-at-11.50.09-AM-1536x831.png 1536w, https:\/\/ethnicmediaservices.org\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-08-at-11.50.09-AM-2048x1108.png 2048w, https:\/\/ethnicmediaservices.org\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-08-at-11.50.09-AM-150x81.png 150w, https:\/\/ethnicmediaservices.org\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-08-at-11.50.09-AM-696x377.png 696w, https:\/\/ethnicmediaservices.org\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-08-at-11.50.09-AM-1068x578.png 1068w, https:\/\/ethnicmediaservices.org\/wp-content\/uploads\/2025\/03\/Screen-Shot-2025-03-08-at-11.50.09-AM-1920x1039.png 1920w\" alt=\"\" width=\"2636\" height=\"1426\" \/><\/div>\n<\/div>\n<div class=\"td_block_wrap tdb_single_content tdi_69 td-pb-border-top td_block_template_1 td-post-content tagdiv-type\" data-td-block-uid=\"tdi_69\">\n<div class=\"tdb-block-inner td-fix-index\">\n<p>Since Trump\u2019s termination of federal diversity, equity and inclusion (DEI) initiatives, small businesses nationwide are expected to take a major hit.<\/p>\n<p>The executive orders issued during Trump\u2019s first week of office in late January end all federal DEI and affirmative action programs; equity-related grants and contracts; and prior equal opportunity executive orders.<\/p>\n<p>The directives come mainly from a trio titled \u201c<a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/2025\/01\/ending-illegal-discrimination-and-restoring-merit-based-opportunity\/\">Ending Illegal Discrimination and Restoring Merit-Based Opportunity<\/a>,\u201d \u201c<a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/2025\/01\/ending-radical-and-wasteful-government-dei-programs-and-preferencing\/\">Ending Radical and Wasteful Government DEI Programs and Preferencing<\/a>\u201d and \u201c<a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/2025\/01\/defending-women-from-gender-ideology-extremism-and-restoring-biological-truth-to-the-federal-government\/\">Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government<\/a>.\u201d<\/p>\n<p>There are 33.2 million small businesses in the U.S., comprising 99.9% of all businesses.<\/p>\n<p>Over\u00a0<a href=\"https:\/\/www.census.gov\/newsroom\/press-releases\/2024\/characteristics-nonemployer-statistics.html?utm_source=chatgpt.com\">40%<\/a>\u00a0of small business owners are women,\u00a0<a href=\"https:\/\/www.nber.org\/be\/20242\/immigrant-entrepreneurship-us\">24%<\/a>\u00a0are immigrants, and nearly one in five are racial minorities, with Latinos comprising a major portion of that group.<\/p>\n<p>\u201cThe attack on so-called DEI is really an attack on American entrepreneurship, and this is just the start,\u201d said Dilawar Syed, former deputy administrator of the Small Business Administration (SBA), at a Friday March 7 Ethnic Media Services briefing about impacts on small businesses. \u201cThe fastest growing segment of entrepreneurs in our country are people of color \u2026 with an absolutely historic number of veterans as well.\u201d<\/p>\n<p>The executive orders accompany a January 27 funding freeze of hundreds of billions of dollars for federal programs, and February federal layoffs under the Elon Musk-led Department of Governmental Efficiency including\u00a0<a href=\"https:\/\/www.politico.com\/news\/2025\/02\/13\/trump-federal-worker-layoffs-00204180\">20%<\/a>\u00a0of SBA staff, approximately 720 employees.<\/p>\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\">\n<div class=\"wp-block-embed__wrapper\">\n<div class=\"td-video-replacer\" data-id=\"undefined\"><\/div>\n<div class=\"youtube-embed\" data-video_id=\"mJ1rLaYYhFg\"><iframe loading=\"lazy\" id=\"widget2\" title=\"Bipartisan Infrastructure Law Led to Historic Rise in Entrepreneurship for Black Women and Veterans\" src=\"https:\/\/www.youtube.com\/embed\/mJ1rLaYYhFg?feature=oembed&amp;enablejsapi=1\" width=\"100%\" height=\"392\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-gtm-yt-inspected-13=\"true\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<\/div><figcaption class=\"wp-element-caption\"><em>Dilawar Syed, former deputy administrator of the Small Business Administration SBA, discusses the rise in entrepreneurship during the Biden administration and explains how the Small Business Administration helped support that growth.<\/em><\/figcaption><\/figure>\n<p>\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 said Syed. \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<p>Last Thursday, SBA Administrator Kelly Koeffler also\u00a0<a href=\"https:\/\/www.sba.gov\/article\/2025\/03\/06\/administrator-loeffler-announces-sba-reforms-put-american-citizens-first\">announced<\/a>\u00a0that the agency would close offices in six major cities \u2014 including Chicago, Denver and New Orleans \u2014 due to sanctuary city laws.<\/p>\n<p>\u201cThat doesn\u2019t help us serve this unmet need of a rising class of entrepreneurs of color,\u201d said Sayed. \u201cAmerican economic competitiveness in the world is directly tied to immigrants pursuing their dreams.\u201d<\/p>\n<p>In 2024,\u00a0<a href=\"https:\/\/www.americanimmigrationcouncil.org\/research\/new-american-fortune-500-2024\">46%<\/a>\u00a0of Fortune 500 companies, or 230 companies, were founded by immigrants or their children.<\/p>\n<p>\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 added Sayed. \u201cAll we\u2019re doing is choking a very important source of labor in this country by demonizing immigrants.\u201d<\/p>\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\">\n<div class=\"wp-block-embed__wrapper\">\n<div class=\"td-video-replacer\" data-id=\"undefined\"><\/div>\n<div class=\"youtube-embed\" data-video_id=\"nKtxP_q-zBo\"><iframe loading=\"lazy\" id=\"widget4\" title=\"\u2018When You Discriminate, You Lose Out on the Talent of a Significant Portion of the Population'\" src=\"https:\/\/www.youtube.com\/embed\/nKtxP_q-zBo?feature=oembed&amp;enablejsapi=1\" width=\"100%\" height=\"392\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-gtm-yt-inspected-13=\"true\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<\/div><figcaption class=\"wp-element-caption\"><em>Thomas A. Saenz, President and General Counsel of MALDEF, Mexican American Legal Defense and Education Fund, discusses the economic consequences of reversing DEI programs and initiatives.<\/em><\/figcaption><\/figure>\n<p>These SBA rollbacks \u2014 alongside a reduction of the agency\u2019s diversity funding quota from 15% to 5% across contracts \u2014 mean steeper hurdles for small businesses trying to get SBA approval, which is crucial to bidding on federal contracts.<\/p>\n<p>\u201cI\u2019m concerned that the very programs we were bidding on will be eliminated now,\u201d said Elizabeth Barrutia, president and CEO,<a href=\"https:\/\/www.baru.com\/\">\u00a0Bar\u00fa<\/a>, a multicultural marketing agency she founded in Los Angeles 17 years ago.<\/p>\n<p>\u201cThere\u2019s a trickle-down effect into the whole media landscape I work with,\u201d she continued. \u201cWhen 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.<\/p>\n<p>\u201cInnovation will falter, and innovation is what generates more dollars,\u201d Barrutia added. \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<p>Multicultural U.S.consumer spending rose from $458 billion in 1990 to $3.2 trillion in 2021.<\/p>\n<p>In 2023, multicultural media spending grew by 5.7% over the past year to\u00a0<a href=\"https:\/\/www.marketingcharts.com\/television-231806?utm_source=chatgpt.com\">$34.64 billion<\/a>, comprising 5.3% of total U.S. ad buying.<\/p>\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\">\n<div class=\"wp-block-embed__wrapper\">\n<div class=\"td-video-replacer\" data-id=\"undefined\"><\/div>\n<div class=\"youtube-embed\" data-video_id=\"HDLUReZQvwM\"><iframe loading=\"lazy\" id=\"widget6\" title=\"How Diverse Communities Can Maintain Economic and Social Mobility in the Anti-DEI Era\" src=\"https:\/\/www.youtube.com\/embed\/HDLUReZQvwM?feature=oembed&amp;enablejsapi=1\" width=\"100%\" height=\"392\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-gtm-yt-inspected-13=\"true\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<\/div><figcaption class=\"wp-element-caption\"><em>Dr. Esther Zeledon, founder of BeActChange, discusses the broad societal impact of Trump\u2019s anti-DEI policies and offers solutions on supporting minority communities amidst attacks on diversity, equity and inclusion.<\/em><\/figcaption><\/figure>\n<p>\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, president and general counsel of theMexican American Legal Defense and Education Fund.<\/p>\n<p>\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 he added.\u201d<\/p>\n<p>\u201cWe\u2019re creating this scarcity mindset of \u2018If I give other people opportunities, then you\u2019re taking away from me,\u2019\u201d said Dr. Esther Zeledon, founder of Be.Act.Change, a life coaching organization. \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<p>\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 continued. \u201cIt\u2019s not just changing a policy, it\u2019s saying that we don\u2019t have any wrong to correct.\u201d<\/p>\n<p>\u201cBecause it\u2019s an attack on social mobility, it\u2019s an economic attack on all of us who are seeing a rise in oligarchy in our leadership,\u201d Zeledon added. \u201cWe need to open doors for each other if we want to help America be stronger, better, more prosperous.\u201d<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>BySelen Ozturk Mar 11, 2025 Since&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,9,7],"tags":[],"class_list":["post-71399","post","type-post","status-publish","format-standard","hentry","category-business","category-opinion","category-u-s-a"],"_links":{"self":[{"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts\/71399","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=71399"}],"version-history":[{"count":1,"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts\/71399\/revisions"}],"predecessor-version":[{"id":71400,"href":"https:\/\/lapost.us\/index.php?rest_route=\/wp\/v2\/posts\/71399\/revisions\/71400"}],"wp:attachment":[{"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=71399"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=71399"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lapost.us\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=71399"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}