News Summary
Tennessee has enacted a law that bans government DEI initiatives, resulting in the closure of critical support programs for minority and women-owned businesses in Memphis. The Minority Women Enterprise program, which provided essential resources for female entrepreneurs, has been dismantled, prompting many to reconsider their business futures. Local leaders express concerns over the negative impact on economic development and support for minority businesses, as funding and contract opportunities dwindle.
Tennessee has enacted significant legislation that bans government agencies from establishing offices dedicated to diversity, equity, and inclusion (DEI) initiatives. This new law, known as HB 0923 or the Dismantling DEI Departments Act, took effect earlier this month and has led to the closure of vital support programs for minority and women-owned businesses, including the Minority Women Enterprise program in Memphis.
The Minority Women Enterprise program was a crucial resource, helping to ensure that women business owners in Memphis, a city where women entrepreneurs previously outnumbered men, had access to training and assistance for securing government contracts and funding. With the closure of this program, many local business owners are now forced to reconsider their futures, facing increased challenges in an already difficult economic landscape.
For instance, Colby Midgett, the owner of Premier Flowers, is contemplating a shift from retail to freelance work due to the heightened difficulties resulting from the program’s closure. Business owners across Memphis report that they are experiencing obstacles in obtaining necessary government contracts and funds as support programs that were once available have been dismantled.
The Dismantling DEI Departments Act, introduced by Tennessee House Republican Aron Maberry, was marketed as a measure to eliminate perceived divisions created by DEI programs. Maberry asserted that these initiatives foster division rather than inclusion. However, the elimination of such programs has raised concerns among local leaders and entrepreneurs who fear it could lead to a decline in economic support for minority-owned businesses.
Concerns about the act’s impact extend to local spending patterns. Shelby County Commissioner Britney Thornton warned that the closure of the Minority Women Enterprise program would negatively affect local expenses related to minority-owned businesses, which had previously benefited from structured training on county and city contract processes.
Statistics highlight the significance of women-owned businesses in the United States, particularly minority women, who own approximately 14% of all women-owned businesses. Collectively, they contribute over $118 billion annually to the national economy. With the new legislative measures, these businesses in Memphis, which contribute substantially to local economies by reinvesting locally at higher rates than larger corporations, now find their prospects bleak.
Community leaders in Memphis fear that the dismantling of the Minority Women Enterprise program could reverse years of hard-earned progress regarding economic development and support for minority businesses. Data suggests there is already a significant underspend on county contracts awarded to minority-owned businesses, with estimates ranging from just 0% to 8%, indicating a troubling trend exacerbated by the recent legislative changes.
Local business owner and mentor Sherrye Smith has observed the overwhelming impact that the programโs closure has had on women entrepreneurs, noting the added challenges they face in navigating regulatory and financial landscapes without proper support. Despite these challenges, many local entrepreneurs are prioritizing community collaboration, seeking ways to share resources and provide mutual support for one another in the absence of formal programs.
This recent legislative action reflects a broader national trend that has seen DEI programs targeted across various sectors, including education, federal agencies, and corporate environments. The potential ramifications of the lost DEI initiatives extend beyond individual businesses to the broader Memphis economy, raising alarms regarding the future of minority-inspired entrepreneurial endeavors in the area.
The Dismantling DEI Departments Act has undoubtedly cast a long shadow over Memphis’s previously thriving environment for women and minority business owners, prompting a re-evaluation of future strategies within the community.
Deeper Dive: News & Info About This Topic
- Local Memphis
- Wikipedia: Diversity, Equity, and Inclusion
- Essence
- Google Search: minority business programs Memphis
- Rolling Out
- Google Scholar: minority business support programs
- We Are Memphis
- Encyclopedia Britannica: minority owned businesses
- Black Enterprise
- Google News: Memphis minority owned businesses
Author: STAFF HERE MEMPHIS WRITER
The MEMPHIS STAFF WRITER represents the experienced team at HEREMemphis.com, your go-to source for actionable local news and information in Memphis, Shelby County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the areaโwith deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Beale Street Music Festival, Elvis Week, and Memphis in May International Festival. Our coverage extends to key organizations like the Greater Memphis Chamber and the Memphis Convention & Visitors Bureau, plus leading businesses in logistics, healthcare, and music that power the local economy such as FedEx, St. Jude Children's Research Hospital, and AutoZone. As part of the broader HERE network, including HEREBristol.com, HEREChattanooga.com, HEREKnoxville.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
