For years, Diversity, Equity, and Inclusion (DEI) initiatives were touted as a solution to address economic disparities for minority entrepreneurs. However, Black business owners now say these programs didn’t go far enough—and some even argue they were just for show.
Take Casey Cooper, a Black woman who fought her way into the male-dominated trucking industry. Despite running a successful business for over a decade, landing a federal contract took years. Even after securing nearly $6 million in government deals, she remains skeptical about DEI efforts.
“DEI isn’t for us,” she said. “It looks good on paper, but the money doesn’t reach us anyway.”
Now, with President Donald Trump rolling back DEI programs, Black-owned businesses worry that even the modest progress made under President Joe Biden’s administration is at risk.
DEI’s Impact: Progress or a Smokescreen?
Under Biden, federal agencies were asked to allocate at least 11% of contract dollars to small disadvantaged businesses, with a goal of 15% by 2025. In 2023, small disadvantaged businesses did receive 12% of federal contracts—but Black-owned businesses got only 1.61%. By 2024, that number shrank to just 1.54% of $637 billion in small-business-eligible contracts.
Despite these efforts, many Black entrepreneurs still find themselves locked out. Structural barriers like limited access to capital and the increasing size of federal contracts make it harder for small firms to compete.
“The contracts keep getting bigger and bigger, making it impossible for small businesses to get in and gain experience,” said Isabel Guzman, former head of the Small Business Administration under Biden.
The Return of the ‘Good Old Boy’ Network
One of the biggest challenges for Black business owners in industries like construction is securing performance bonds, which are required for large-scale contracts.
“White men can get a bond quicker than we can because they’ve had generations to accumulate wealth,” said Patricia Sigers, a Black construction firm owner.
Wendell Stemley, president of the National Association of Minority Contractors, describes the issue as a “good old boy network” that continues to favor established, white-owned firms over minority businesses.
“There’s this false idea that the government has this huge minority business program giving Black-owned companies tons of contracts. That’s just not the reality,” Stemley said.
What Happens Next?
Trump’s executive orders have created uncertainty for Black businesses. He revoked a 1965 law prohibiting employment discrimination by federal contractors and mandated that companies certify they don’t run any “illegal” DEI programs.
Legal experts warn that this move will likely discourage businesses from maintaining diversity programs out of fear of government penalties.
Meanwhile, minority-focused trade groups are considering legal challenges and lobbying lawmakers to protect diversity efforts.
“If you take away the little progress we’ve made, it’s just not fair,” said Drexel Johnson, a Black contractor in California.
While DEI programs have their flaws, many Black business owners agree on one thing: dismantling them without addressing deeper structural issues will only widen the gap they were meant to close.
