Sec. 1102. Findings

190 words·~1 min read·/bill/117/s/5220/is/section-1102

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Congress finds the following: Studies have found that incubators, accelerators, and other similar models are effective at increasing revenues, the number of employees, and the likelihood that the business venture will be successful for participants. According to the Kauffman Foundation— minority-owned and women-owned businesses are 1/2 as likely to employ people than nonminority-owned and men-owned businesses; and if minorities started businesses at the same rate as nonminorities, approximately 9,500,000 jobs would be added to the economy of the United States.

The Kauffman Foundation also found that the percentage of startups in rural communities has dropped from 20 percent in the 1980s to 12.2 percent. According to the Martin Prosperity Institute, less than 1 percent of all venture capital funding goes to businesses located in rural areas. According to PitchBook, around 2 percent of all venture capital funding goes to businesses with women founders. According to Crunchbase, less than 3 percent of all venture capital funding goes to businesses with Black and Hispanic founders.

Historically Black colleges and universities, minority-serving institutions, and community colleges are anchor institutions that serve populations that tend to be underrepresented in entrepreneurship, particularly in high-growth sectors.