Small businesses boomed during the pandemic and like many of us, have faced enormous pressure since (e.g., impact of inflation). America’s entrepreneurial spirit not only paves a way for innovation and growth; small businesses also account for nearly half of the American workforce and GDP. It is for this reason that so many lawmakers recognize the value of small business and entrepreneurship. Although we often consider startups and other smaller companies to be the backbone of America, their interests and needs are not as well understood as those of large companies that have the resources and political power to represent their interests in lawmaking. In order to foster a thriving American entrepreneurial ecosystem, bipartisan efforts are critically needed to advance innovative solutions that tackle the complex issues experienced by small businesses today.

For example, the rapid evolution and adoption of artificial intelligence (AI) technologies has led to significant cost savings and improved efficiency for many small businesses, especially for those who have historically had less access to resources. While small businesses learn how to effectively integrate AI into their decision-making and business processes, they must concurrently navigate significant new challenges posed by AI, such as job displacement and ethical concerns (e.g., biases, privacy issues). Meanwhile, workforce participation remains below pre-pandemic levels, and these labor shortages continue to disproportionately affect small businesses as well as limit hiring opportunities for women, members of racial/ethnic minority communities, and those without traditional four-year degrees. Finally, it is critical to understand and address the barriers to entry small businesses can face, including challenges accessing capital, regulatory challenges, lack of awareness of available resources (e.g., mentoring and capital support), and addressing personal/workforce needs.

Altogether, this briefing will present data and research findings that depict the challenges facing entrepreneurial small businesses with specific attention to the following: (i) addressing the barriers to entrepreneurship; (ii) supporting workforce recruitment, retention, and diversity; and (iii) preparing small businesses for AI technology. Within each topic presentation, implications for specific entrepreneur populations, such as women, veterans, entrepreneurs of color, rural small businesses, and entrepreneurs from non-traditional educational backgrounds will be discussed, as applicable.

Agenda

Opening Remarks

Thomas Hall, PhD
Associate Professor, Economics and Finance
Christopher Newport University

Barriers to Entry in Entrepreneurship in 2024

Jerome Katz, PhD
Robert H. Brockhaus Endowed Chair of Entrepreneurship
Saint Louis University

Addressing Small Business Workforce Shortages

David Shideler, PhD
Chief Research Officer
Heartland Forward

Artificial Intelligence in Small Businesses

LaTasha Ireland, PhD
Organizational Psychology Practitioner
President, Cultivating Thru Struggles Network

Entrepreneurship Testimonial

Keanu Trujillo
Alchemy Coworking

Discussion

Related Fact Sheets

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Impact of Artificial Intelligence (AI) on Entrepreneurship

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