Opening doors and connecting dots: How the small business ecosystem in Missouri is meeting entrepreneurs where they are

This article highlights key themes and moments from the third Mastercard Strive USA Summit held in St. Louis, Missouri, on June 24, 2024. These summits bring together leaders from government, philanthropy, the private sector, and other groups with the goal of spotlighting and scaling local and national initiatives that strengthen small business ecosystems.

Connecting small businesses with the support they need to operate more efficiently, grow their footprint, and plan for the future requires a bespoke approach — there is no one-size-fits-all solution. Entrepreneurs have different needs at different times, and both markets and technology continue to evolve rapidly. This creates an increasingly complex business environment but also represents more opportunities than ever.

The major theme of the third Mastercard Strive USA Summit was leveraging historic opportunities for small businesses — including unprecedented federal funding, new digital tools, and more equitable financing options — in a diverse small business landscape. Held in St. Louis, the summit brought together national and local leaders from government, philanthropy, the private sector, and other key players.

One key starting point is forming partnerships that combine different resources, skill sets, and networks.

“What we have seen work in St. Louis is when partners come in with technical expertise and tools to help a small business grow, and then partnering with local agencies and organizations already working with small businesses,” said St. Louis Mayor Tishaura Jones in a fireside chat. “You need to marry all of those things together — expertise, resources, and direct connections with small businesses.”

Panel discussions on technology innovations, historic federal programs, and the challenges of supporting entrepreneurs in rural communities illustrated this theme and highlighted various ways to strengthen small business ecosystems.

Ensuring federal funds flow to small businesses

Historic federal funding for small businesses, such as the U.S. Department of Treasury’s $10 billion State Small Business Credit Initiative (SSBCI), was one cross-cutting topic at the Missouri Summit. Across panels, speakers discussed the unprecedented federal funding available while cautioning that effective and equitable disbursement requires support from non-government partners on the ground.

The first challenge is ensuring entrepreneurs are aware of these programs and helping them apply for those relevant to them. For instance, St. Louis Development Corporation (SLDC), the independent economic development agency for the City of St. Louis, established the Northside Economic Empowerment Center (NEEC). The NEEC, supported by the American Rescue Plan Act (ARPA) and Mastercard’s Digital Doors program, offers entrepreneurs and small businesses in-person information and support on a range of local, regional, and federal programs.

Small business owners often need to adjust their mindset before even applying for federal funds. “What I usually tell small businesses that may be eligible for a federal program is to think of that funding as an investment in their business and not a grant,” said Neal Richardson, Chairman, President & CEO of the St. Louis Development Corporation.

“When you are looking for financing, you wouldn’t walk into a bank without a strong business plan and pitch on how you plan to leverage those resources beyond the initial investment. So small business owners need to think of government programs as investment partners, not just grantors.”

At the community level, Nadia Villagrán, Director of Rural LISC and Vice President at LISC, emphasized the importance of developing a plan with input from multiple stakeholders on how federal dollars will be spent and leveraged.

“If a community comes together and talks about what they need, where dollars should go, and then documents it, that will make any application for federal funds much more effective and easier to put into practice,” she said. “This is a historic moment with the amount of money available. We can either thrive when the wave comes or get washed away because we didn’t get our ducks in a row.”

Helping small businesses choose and implement the right technology

The theme of helping small businesses implement new digital tools was another major focus of the convening. Many entrepreneurs start out feeling overwhelmed by the necessity of building a digital presence and the myriad technology choices available.

Hannah Gooding, Director of Partnerships at Nest, a nonprofit supporting marginalized artisans and makers in the U.S. and around the world, explained that this challenge is particularly acute for artisan entrepreneurs.

“Digital technology can be hugely impactful in rural economies where many makers work because it helps them tell their story and sell to communities outside of their immediate vicinity,” said Gooding. “But we have seen our entrepreneurs feel overwhelmed by the omnichannel environment, thinking they need to sell their products in brick-and-mortar stores, on their own website, Etsy, and on Instagram — which all require very different tools, capabilities, and approaches.”

On the technology provider side, discussions centered on how new digital tools can simplify the support process for small businesses. Kamran Qamar, Partner, and Chief Technology Officer at Next Street, spoke about their new one-stop-shop that makes it easy for small businesses to connect with responsible capital providers and business advisors. Bernard Worthy, CEO of LoanWell, an automated lending platform for community lenders, spoke about how new technologies could help upend traditional power dynamics.

“We are using data and technology so lenders can have more equitable lending practices, such as not relying exclusively on a FICO score and using alternative metrics that are much more relevant,”said Worthy. “There is also something fundamentally flawed about the way we apply for a loan now, which is applying when you really need the money most. He added, “What if there were platforms that were proactive about when you were in the best position to access credit and then educating you about the different types of credit products that may be available? That is already starting to happen.”

Proactive support with humility

The panelists represented a diverse range of organizations, but shared a common view: The starting and ending point for any intervention should be rooted around the needs of the small business owner.

“We need to have an attitude of humility and curiosity when it comes to small business growth. We are not here to say what that growth should look like and how we’ll make it happen,” said Gooding in the closing panel. “We should be asking what they want their growth to look like and how we can help them get there. Entrepreneurs are the ones doing the work — in our case, literally taking scraps of fabric and hand stitching them into quilts, or taking wheat grass and weaving it into baskets. We are just the door openers and dot connectors — and we have to do more for these entrepreneurs, and do it together.”