The launch of the AEO (Association for Enterprise Opportunity) Regional Councils convening at the Federal Reserve Bank of Chicago on 20th November 2024 assembled some of the most dynamic leaders in entrepreneurship, small business development, and economic empowerment. This included U.S. federal and state officials, business visionaries and non-profit leaders, committed to fostering collaboration, driving equitable economic growth, and empowering small businesses across the Midwest.
MOU SIGNING TAKES PLACE BETWEEN THE AEO AND JOINT CENTER
As per the Washington, D.C., December 2, 2024 AEO press release, the Latestsale.com Founder witnessed in person (she is pictured on the right hand side directly behind AEO President and CEO Natalie Madeira Cofield) the signing of the official MOU (Memorandum of Understanding) at the Federal Reserve Bank of Chicago between the AEO (The Association for Enterprise Opportunity) and the Joint Center for Political and Economic Studies (Joint Center).
AEO PRESIDENT AND CEO CALLS FOR AN ENTREPRENEURSHIP RENAISSANCE
Washington Business Journal’s Women Who Mean Business Power List award winner Natalie Madeira Cofield, President and CEO of the AEO, communicated her desire to elevate organizations that prop up entrepreneurs. According to recent statistics, 19 M business were formed in the last three years from 2021 to 2024 in the United States and these figures were referred to by Madeira Cofield as an example of the wave of “entrepreneurship renaissance.” The AEO President and CEO, Madeira Cofield equally highlighted the importance of supporting regionalism beyond cities to tap into the strength of each region. “Economic opportunity should be accessible from the Federal level to the top,” she declared.
Key objectives were established for the Midwest regions encompassing ten states; Illinois, Indiana, Michigan, Minnesota, Ohio, Kansas, Iowa, Nebraska, Missouri and Wisconsin, underpinned by four key themes. Although the precise details of the 20th November 2024 AEO Federal Reserve Bank of Chicago Midwest Regional Council convening remain confidential, Latestsale.com is able to summarize some of the finer points and conclusions of the panel as follows:
- Push forward U.S. competitiveness so that U.S. businesses can win and compete adequately in global markets.
- Create innovative ideation techniques for full business innovation.
- Exploration of Federal level support for businesses.
- Reducing barriers to success for small businesses.
U.S. CONGRESS RESPONDS TO SMALL BUSINESSES
With over USD 56M attributed towards small business financing and success in the USA, alongside 103,000 business deals, the future for small businesses in the USA, together with entrepreneurship as a whole certainly looks bright.
To 2024, U.S. Congress committed 28% of its budget for designated small business contract assignment awards and innovation-backed venture funds for tech entrepreneurs through innovation grants. Business advice and further support was greatly encouraged at Federal level with local office jurisdiction involvement.
During the Biden Administration, the city of Chicago enjoyed USD 20BN of public funds infrastructure support for Chicago alone whilst 60,000 new businesses were created at state level. Democratizing access to funding via SBA (U.S. Small Business Administration) loans for early-stage businesses was a key objective, whilst removing red tape was seen as a critical factor to ensure that underserved business leaders could embark upon their enterprising journey thanks to streamlined applications and clear reforms.
At state level, 50% of lending increased thanks to the emergence of small regional banks.
U.S. MISSION LENDERS RESPOND TO SMALL BUSINESSES
More competition is likely within the U.S. banking sector as financial institutions look to acquire and attract African American and Latino entrepreneurs. Current stats as of 2024 indicate that of the USD 1.4bn total lending to small businesses, only USD 50M was allocated towards African American businesses, highlighting the gap and opportunity for new lenders to emerge.
AEO micro enterprises represent a key sector underserved for business lenders that the Association for Enterprise Opportunity is keen to support. 96% of U.S. businesses are in fact micro businesses with less than ten employees, each communicating specific concerns such as resource availability and awareness of said resources.
THE AEO MIDWEST REGIONAL PANEL REDEFINES UNDERSERVED COMMUNITIES
AEO President and CEO Natalie Madeira Cofield reiterated her commitment to ensure small business could access support that recognizes their entrepreneurial ambition through initiatives such as training in communities and sharing knowledge on certification. Redefining what underserved communities was, is also said to be a priority with clear guidelines as to how this relates to racial and gender minority considerations. Highlighting whether geographical challenges such as rural versus urban dynamics are a factor to success requires further exploration.
Memphis was declared as being the second largest African American city in the USA and was described by the panel as being unserved rather than underserved.
The Great Lakes regional Illinois panel admitted it was proud to have created 617,000 new businesses recently although the metro regions and larger cities have not benefited. The panel agreed that the most important focus moving forward would be on building communities, partnerships and strong networks.
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DISCLAIMER 2. 2025 AEO PARTNERSHIP RECAP- Latestsale.com commentary relating to the Federal Reserve Bank of Chicago. Thoughts and observations are our own. Federal Reserve Bank personnel’s shared views are not necessarily those of the Board of Governors of the Federal Reserve System.