By Daniel Schmidt

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When it comes to economic inequality in the South, I’ll spare you the history lesson as the disparities in wealth, access to quality housing and higher education speak for themselves. Yet as racial justice protests have highlighted these issues alongside police treatment of minority communities, one area has received less attention: entrepreneurship.

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While economic opportunity zones and other similar schemes meant to win over votes have been touted in political campaign speeches, such schemes have fallen short of their goal of increasing the wealth of those historically denied by banks and other institutions.

According to U.S. Census Bureau data, nearly 32% of the City of Auburn’s residents are minorities, yet only 20% of businesses in Auburn are minority-owned. In an affluent college town such as Auburn which has five census tracts approved as opportunity zones, this problem should not persist. Yet it does.

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That is because such solutions touted by politicians do not strike at the heart of the problem. For entrepreneurs of color, the problem has never revolved around the presence of government incentives or favorable tax codes. It has been access to loans that make starting a business financially feasible.

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Any small business owner will tell you that entrepreneurship is not cheap no matter the industry. There are fixed costs, variable costs and so many other factors outside of their control that determine if their dream will come to fruition. For those without money or collateral, a loan is the only way they can enter business.

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Until the 1970s, the law allowed for overt discrimination against people of color seeking loans for homes, education and business. While legislation legally outlawed discrimination in lending practices, those that participated did not simply pack up and leave. Should we truly be surprised that Auburn’s business community does not accurately represent the community it serves?

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The solution will require the institutions most responsible for the disparity in business ownership, financial institutions and government, to work together to atone for past transgressions and empower today’s minority entrepreneurs.

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As the City of Auburn embarks on a new venture with Sabre Finance to provide loans to people of color seeking to start or maintain a business in the ‘Loveliest Village on the Plains,’ I say, “what took you so long?”

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For the town whose university’s creed reads, “I believe that this is a practical world and that I can count only on what I earn. Therefore, I believe in work, hard work,” those that have historically been denied the opportunity to earn what they may based on their own diligence must now truly be supported.

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A family that does not give each member the chance to reach their full promise is broken and dysfunctional and unworthy of the title.