How Arizona’s minority-owned businesses are navigating the post-DEI landscape | News

As federal diversity, equity and inclusion (DEI) policies face growing political pushback, minority-owned businesses across Arizona are encountering a shifting economic landscape — one where key support programs are vanishing just as demand for entrepreneurship in underserved communities continues to grow.

The rollback of federal initiatives, including the defunding of the Minority Business Development Agency (MBDA) and the dismantling of affirmative action in government contracting, has had a chilling effect on many longstanding programs aimed at addressing historical inequities in business. Yet rather than retreat, Arizona’s diverse business community is adapting, forming new alliances, and relying more than ever on state-level support and grassroots networks.

“We’re in strange times at the moment,” said Carmen Attikossie, senior manager of small business development for Local First Arizona. “But our community partners are reaching out and saying, ‘Hey, how can we assist? What can we do?’ The folks that are mission-aligned with what we do at Local First are definitely stepping up.”

Originally from West Africa, where she began her entrepreneurial journey in college by selling wax-print accessories made by artisans in her country, Attikossie was recruited after graduation by an education startup in Rwanda, where she built an entrepreneurship program for young Africans.

Today she oversees Local First Arizona’s We Rise business accelerator, a six-month program that supports Black entrepreneurs throughout Arizona with business education, mentorship and seed funding. The program was launched in 2020 during the height of the COVID-19 pandemic — and the peak of national attention to racial justice issues. The virtual format, originally adopted out of necessity, proved to be a scalable model that has since allowed the accelerator to serve businesses in Phoenix, Tucson and beyond.

“We’ve stayed virtual all these years, because we’re able to reach more Black-owned businesses across the state,” said Attikossie. The program does hold quarterly meetups in person, which have so far taken place in Phoenix, but organizers have plans to alternate the meetings between Phoenix and Tucson.

“We do have a growing base of Black-owned businesses from Tucson who are participating in the accelerator,” she said. “The more we see this growth, the more we will think of migrating as well to do some of our quarterly meetups in Tucson.”

At the heart of We Rise’s curriculum is a belief that entrepreneurship is cultural, requiring approaches that speak directly to the lived experiences of underserved business owners. That means setting up networks in all areas of the state, including some rural outposts.

“We’ve graduated over 100 businesses across the state,” said Attikossie. “People are in a cohort with other Black-owned businesses, learning alongside each other. We create peer groups for people to connect, network and prepare them for success.”

But the economic and political climate has changed significantly since the program launched — right around the time of George Floyd’s 2020 murder by a Minneapolis police officer, which sparked worldwide protests and calls to tackle systemic racism. Five years later, the climate is much different.

“The new changes with what’s happening with DEI and all the different things with the current administration, yes, it has made things a bit difficult,” Attikossie admitted, using the measured, tactful language that has become the code of the times. “We’re doing the best we can to continue to support the businesses with community partners and to make do with what we have available.”

Access to capital, always a challenge for Black-owned businesses, has become even more constrained, she added. “We’re now focused on helping our folks understand the regulations and how best to pivot. If certain resources are no longer available, we lean more on our community partners to get people the help they need.”

To that end, We Rise offers participants the opportunity to save $1,000 during the program, which is matched by Local First Arizona to create a $2,000 seed fund. The program also includes modules on bootstrapping, business credit, taxes and working with Community Development Financial Institutions (CDFIs).

“Of course, we’re not going to solve everything,” Attikossie said. “But we want to be part of the solution.”

After graduation, participants can join the broader Local First Arizona network, which offers access to consultants, food incubator programs and public-facing events like the Dining for Dreams culinary showcase. We Rise also hosts a pitch competition, where alumni can compete for up to $17,500 in additional funding.

“We want people to know: We’re still here,” said Attikossie. “Even in a climate where some programs are going away, we’re making sure ours stay strong.”

Lea Márquez Peterson, a former small business owner and past president of the Tucson Hispanic Chamber of Commerce, currently serves on the Arizona Corporation Commission. She, too, has been navigating the new realities of post-DEI Arizona — and sees both the challenge and opportunity.

“There’s definitely been an impact from the defunding of programs like the Minority Business Development Agency,” Márquez Peterson said. “But I’ve seen some of the formerly federally funded organizations launch private entities to try and meet that gap. These services — training, mentoring — are still needed. Whether it’s through local government or private support, we have to keep providing them.”

While federal rollbacks have made headlines, Márquez Peterson said many existing programs are still operating, though often with less visibility or security. She points to the Women’s Business Center at the Tucson YWCA and national organizations like WBENC and Stanford’s LBAN (Latino Business Action Network), of which she is an alumnus.

“A lot of these programs are continuing to grow,” she said. “But they’re having to look for funding elsewhere if they were dependent on federal dollars.”

In her current role, Márquez Peterson works at the intersection of regulation and opportunity, overseeing utility infrastructure projects and helping Arizona prepare for massive growth in energy demand.

“We’re seeing more than a 40% increase in energy demand over the next five to seven years,” she said. “That’s being driven by data centers, manufacturing and semiconductors, especially in Phoenix but also in rural Arizona.”

She sees these sectors as ripe for supplier diversity — if small businesses can get plugged in.

“When a utility builds a new plant or transmission line, they want to build relationships with local vendors,” she said. “That’s a great opportunity for small businesses to talk about their services. I wouldn’t necessarily say there’s a policy push for minority-owned vendors in particular, but there is a strong emphasis on Arizona-based businesses.”

One of her primary concerns is that many underserved businesses simply don’t know where to begin.

“Most of the time, they don’t know how to plug in,” she said. “So I’ve hosted supplier summits, I encourage participation in the Integrated Resource Planning process, and I just get out and speak. Education and engagement are the first steps.”

That message applies to business owners from all backgrounds, but it holds particular resonance for those shut out of traditional networks.

“Historically, companies do business with people they know,” she said. “So if you’re a minority-owned business interested in energy or data centers, you’ve got to attend the conferences, the procurement events. Get in the room. Let people know you’re credible and ready to scale.”

Márquez Peterson believes Arizona’s rapid economic growth presents a rare window for diverse-owned businesses to expand — if they’re proactive.

“Not every state is growing as quickly as Arizona,” she said. “There are great opportunities for all types of businesses to do business here.”

As federal policies continue to shift, organizations like Local First Arizona and voices like Márquez Peterson’s are working to ensure that minority entrepreneurs don’t fall through the cracks. The tools may be fewer, the support less centralized, but the ambition remains.

“We’re not giving up,” Attikossie said. “If anything, it’s made us more creative — and more committed to making sure these businesses get what they need to grow.”