New Report Highlights States Leading the Way in Inclusive Entrepreneurship
In a significant move towards fostering equity in entrepreneurship, the Nasdaq Entrepreneurial Center has unveiled a new report from its multi-year Venture Equity Project (VEP), supported by industry giants JPMorganChase and Nasdaq. Released on October 7, 2024, this research aims to provide data-driven insights for ecosystem builders, policymakers, investors, and educators, focusing on how geography influences opportunities for underrepresented entrepreneurs, particularly Black, Hispanic, and women founders.
The Importance of Geography in Entrepreneurial Equity
The VEP report emphasizes the critical role that geography plays in shaping entrepreneurial opportunities. By evaluating state-level legislative activities, business ownership demographics, and qualitative insights from various entrepreneurial models, the research offers a comprehensive view of how different regions support or hinder inclusive entrepreneurship. The collaboration involved three key research partners: Penn State University’s Evidence-to-Impact Collaborative, Heartland Forward, and the Nasdaq Entrepreneurial Center itself.
Key Findings: States Advancing Equity for Underrepresented Entrepreneurs
The report identifies the top-performing states in fostering equity for various underrepresented groups:
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Top 5 States Advancing Equity for Black Entrepreneurs:
- Oregon
- Georgia
- Arkansas
- Texas
- Maryland
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Top 5 States Advancing Equity for Hispanic Entrepreneurs:
- Florida
- Louisiana
- Hawaii
- South Carolina
- Kentucky
- Top 5 States Advancing Equity for Female Entrepreneurs:
- Washington D.C. (noted as the top territory)
- Colorado
- Hawaii
- Washington
- Oregon
- Wyoming
These rankings highlight the varying degrees of support and resources available to entrepreneurs based on their geographic location, underscoring the need for targeted interventions.
Equity Innovation Leaders
The report also designates seven states as "Equity Innovation Leaders," recognizing their commitment to systemic change and the development of inclusive entrepreneurial ecosystems. These states are:
- Florida
- Georgia
- Illinois
- Maryland
- Michigan
- North Carolina
- Texas
Among these, Florida, Texas, and Georgia stand out as emerging ecosystems that not only support entrepreneurship but also demonstrate a commitment to equity. The report suggests that newer ecosystems may be more equitable than those established for decades, a hypothesis that the Nasdaq Entrepreneurial Center intends to explore further in future research.
Insights from Industry Leaders
Nicola Corzine, CEO and Executive Director of the Nasdaq Entrepreneurial Center, commented on the findings, stating, "No state in the U.S. has achieved true equity for entrepreneurs, but our latest research provides important location-based insights mapping how various regions are making strides towards entrepreneurial equity." She emphasized that regions with higher rates of success among underrepresented businesses tend to attract more venture capital, indicating a positive feedback loop that can further enhance equity.
Shaolee Sen, Executive Director of Small Business Global Philanthropy at JPMorganChase, echoed this sentiment, highlighting the importance of place-based solutions in fostering inclusive access to venture capital. "We’re proud to support the Nasdaq Entrepreneurial Center and the Venture Equity Project in advancing important research and policy recommendations on how states can foster greater equity in the venture ecosystem," she stated.
Accessing the Complete Findings
For those interested in delving deeper into the research, the complete findings from the Venture Equity Project are available online. The report serves as a valuable resource for understanding the dynamics of entrepreneurial equity across the United States and offers actionable insights for stakeholders looking to make a difference.
About the Organizations Involved
The Nasdaq Entrepreneurial Center is a non-profit organization dedicated to enhancing access and resources for entrepreneurs. Through educational programming and partnerships with policymakers and capital allocators, the Center aims to meet the real-time needs of entrepreneurs.
Heartland Forward is a policy think tank focused on addressing the economic needs of communities in the heartland of the United States. By studying economic trends and building data-driven partnerships, Heartland Forward seeks to stimulate growth and change the narrative about the region.
Penn State University’s Evidence-to-Impact Collaborative is committed to improving the relevance and use of research evidence to enhance societal well-being. By leveraging expertise in program design and evaluation, the EIC aims to optimize public and private investments.
JPMorganChase, a leading financial services firm, plays a crucial role in supporting entrepreneurs through various initiatives aimed at fostering growth and equity in the business landscape.
Final Thoughts
The findings from the Nasdaq Entrepreneurial Center’s Venture Equity Project provide a roadmap for understanding and improving equity in entrepreneurship across the United States. By highlighting the states that are making significant strides, the report encourages further exploration and action to create a more inclusive entrepreneurial ecosystem for all.