Reframing the Focus: A Forward-Thinking Approach to Address the Tension Between Compliance and Broader Systemic Inequities to Foster Positive Change for America’s Businesses and Economy

 THE CHALLENGE 

The undeniable shifts in our climate and their profound impact on how we live, work, and play serve as a stark reminder: adapting to change is not optional. Change, whether embraced or resisted, is a powerful and unavoidable force that drives innovation, evolution, and the ability to overcome challenges. By leaning into it, individuals and organizations can remain relevant, seize new opportunities, and navigate uncertainty. While change often feels uncomfortable, it is through adaptation that we nurture personal and professional growth, gaining the skills, perspectives, and resilience required to thrive in an ever-evolving world. Simply put, change is essential for survival.

The tension between compliance and broader societal goals often stems from the differing focuses of the permissible and societal frameworks surrounding terminology, policies, and practices designed to combat discrimination and promote fairness.  However, when overemphasized in an unbalanced way, specific terminology, policies, and practices may seem exclusionary, potentially giving rise to perceptions of reverse discrimination. This dichotomy, despite noble intentions, places organizations in a delicate position.

On the one hand, organizations must mitigate the risk of noncompliance repercussions, such as funding revocations or litigation. On the other hand, organizations risk perpetuating inequities if they fail to address systemic barriers meaningfully. Striking the right balance is essential to achieving both compliance and positive societal impact that is beneficial to businesses and the economy.  The subsequent list comprises specific terms that, when excessively employed, may suggest bias. This underscores the significance of cultivating thoughtful and balanced terminology that promotes fairness, inclusivity, optimism, and adherence to standards, while continually evidencing systemic barriers to facilitate meaningful and sustainable positive change for individuals and society at large.

Examples of Traditional Terms That May Appear Biased When Overused

• Personal Experiences and Conditions: Traditionally, socioeconomic status, sexual preference, trauma, and underrepresented.

• Social Inequities and Discrimination: Inequality, institutional, intersectional, marginalized, minority, ethnic minority, oppression, discrimination, hate speech, systemic, victim, polarization, barrier, and exclusion.

• Biases and Prejudices: Biases, implicit bias, male-dominated, and privilege.

• Personal Identification and Demographics: BIPOC, Black and Latinx, women, ethnicity, female, gender, and LGBTQ.

• Diversity, Equity & Inclusion: Advocacy, antiracism, cultural relevance, diversity, equality, inclusivity, multiculturalism, racial diversity, and a sense of belonging.

• Supplier Diversity: BIPOC businesses, disadvantaged businesses, minority business enterprises, female-owned businesses, LGBTQ-owned businesses, and underserved businesses.

THE SIGNIFICANCE OF REFRAMING TERMINOLOGY TO ADDRESS THE TENSION BETWEEN COMPLIANCE AND BROADER SYSTEMIC INEQUITIES TO FOSTER POSITIVE CHANGE FOR AMERICA'S BUSINESS AND ECONOMY  

Considering the limited guidelines regarding what constitutes "inclusive" language and practices, two contemporary and politically acceptable terms to employ in sensitive contexts are Historically Under-Resourced Businesses (HURBs) and Under-Resourced Businesses (URBs). By utilizing these phrases, an organization avoids granting undue advantage or stigma to a group with experiences inherently associated with protected characteristics, thereby endeavoring to balance compliance with broader systemic inequities.  

Key Differences:

Terminology	Traditional Terms	New Terms
Focus of Policy	Promoting inclusion and market integration.	Addresses resource gaps.
Economic Potential	Highlight untapped potential due to a lack of visibility or inclusion.	Focus on overcoming resource constraints.
Examples	Targets businesses based on classifying how the owners of the business “identify” themselves.	Targets companies that acknowledge or recognize their specific resource gaps and are able to articulate how assistance will enhance their resilience.

The Significance of Employing Reframed Terminology to Facilitate Mindset Reformation to Promote Change for America’s Businesses and Economy

1. Neutral and Objective:  The use of the word "historically" is a factual term that refers to events or patterns rooted in the past without implying judgment or bias. It is often used in academic, policy, and professional settings to describe systemic or long-standing issues.
2. Avoids Implications of Intent:  In contrast to terms such as “underserved,” “underutilized,” or “disadvantaged,” which in a traditional sense may imply cultural norms, choices, or practices that were deliberately maintained, the term "historically" emphasizes the progression of time and systemic realities without conveying endorsement or approval.
3. Inclusive and Accurate:  The term "historically" acknowledges past disparities or recurring patterns without alienating or offending any particular group. It is often used in discussions related to systemic barriers or unjust practices.
4. Focuses on Systems, Not Individuals: The term "under-resourced" shifts the emphasis from blaming individuals or communities to highlighting systemic issues. It underscores the lack of access to resources rather than suggesting inherent deficiencies in the people or groups affected, based solely on self-identification.
5. Neutral and Non-stigmatizing:  Terms such as "disadvantaged" may carry negative connotations or reinforce stereotypes; in contrast, "under-resourced" is neutral and avoids stigmatizing the individuals or communities being discussed.
6. Acknowledges Structural Inequities:  The terms "historically under-resourced" or under-resourced" inherently reflect the systemic nature of inequalities, encompassing the unequal distribution of wealth, education, healthcare, and opportunities. It recognizes that the core issue lies in the allocation of resources rather than in the capabilities or worthiness of the affected group(s).
7. Empowers Advocacy and Solutions:  By framing the issue as a lack of resources, the terms "historically under-resourced" or "under-resourced" promote strength-based communication. [1] They encourage discussions about the provision or redistribution of resources to reduce inequalities, thereby fostering a more constructive and forward-looking dialogue.
8. Inclusive and Broad:  The term "under-resourced" is applicable across various contexts, including education, healthcare, economic development, and community development, both nationally and globally. Its versatility makes it a preferred term in diverse discussions related to fairness, inclusivity, and justice.
9. Reflects Evolving Language Norms:  The terms "historically under-resourced" or "under-resourced" promote communication that evolves to reflect changing societal values and priorities. "Under-resourced" aligns with current initiatives to use language that is respectful, inclusive, and aimed at systemic change, rather than perpetuating narratives that might be interpreted as reverse discrimination. 

THE IMPORTANCE OF USING REFRAMED TERMINOLOGY TO IDENTIFY AND SUPPORT THE BACKBONE OF AMERICA’S ECONOMY 

The U.S. economy is a complex mosaic composed of businesses of all sizes, from large national and multinational corporations to microenterprises managed by a single owner. At the heart of our economy is an expansive and diverse group of 1099 independent contractors, contingent workers, micro-businesses, and small enterprises, collectively driving the engine of our economy.

These entities are often overshadowed by the brand recognition and media attention of their larger counterparts. Still, these companies create two-thirds of net new jobs and drive U.S. innovation and competitiveness. [2]  

While 33 million micro and small firms don’t have paid employees, about 6 million do. They account for just under half of total private sector employment (46%). [3] 

Of the 6 million businesses with paid employees, about a quarter (27%) have between 5 and 19 employees, 8% have 20 to 99, and just 1% have 100 to 499 workers. [4]  

Overall, small businesses employed an estimated 56.4 million workers in 2021 and generated over $16.2 trillion in revenue. [5]

Micro and small enterprises are unequivocally characterized as "under-resourced.” They face systemic barriers to accessing and utilizing information, capital, technology, talent, and markets, while also managing disproportionate resource burdens. Despite these challenges, they remain the backbone of the economy by creating jobs, fostering innovation, and supporting community growth. It is essential to address the resource gaps faced by these enterprises, not just as an economic need but as a vital step toward building a more resilient and sustainable circular economy. To accomplish this, the initial focus should shift from supporting businesses primarily based on identity-specific identification to specifically addressing the unique challenges faced by historically under-resourced and under-resourced independent contractors, micro and small businesses. By evaluating how to support businesses in this way, we can help create a stronger, more inclusive, and prosperous economy, while also addressing significant universal socioeconomic and national security issues.

The Advantages of Employing Reframed Terminology to Promote Mindset Shifts for Economic Growth in America, Thereby Enhancing Overall Local Impact. 

Under-resourced businesses are the lifeblood of local economies, directly supporting neighborhoods by providing goods, services, and jobs. They:

• Employ nearly half of the private sector workforce, creating stable local jobs.

• Foster community development and keep money circulating locally, boosting other businesses.

• Strengthen community identity, attract tourism, and build pride among residents.

When these businesses gain access to the right resources, communities become more resilient to economic downturns, creating a ripple effect that strengthens the entire local ecosystem.

1.  Multiplies Regional Growth

At the regional level, these businesses:

• Drive innovation, bringing fresh ideas and solutions to market.

• Collaborate with other independent contractors, micro, and small businesses, and when adequately resourced, they can utilize the resources of larger companies, universities, and governments to foster regional development.

• Reduce economic gaps by unlocking potential in under-resourced areas.

Regions that see value in investing in all under-resourced businesses become hubs of innovation and economic activity, attracting talent and investment while reducing systemic disparities.

2.  Improves National Competitiveness

Under-resourced businesses are the economic engine of the U.S.; these micro and small businesses generate $16.2 trillion [6] in revenue and two-thirds of net new jobs. [7] Their success:

• Drives job creation, directly impacting national employment rates and economic stability.

• Boosts GDP, ensuring the U.S. remains a global economic leader.

• Reduces increased reliance on a few large businesses or foreign suppliers, making the economy more sustainable and resilient.

Supporting these businesses safeguards the U.S. economy from systemic inefficiencies and strengthens its foundation for long-term growth.

3.  Strengthens America’s Global Position

Historically under-resourced and under-resourced businesses don’t just impact the U.S.—they enhance America’s global competitiveness by:

• Expanding into global markets, showcasing American innovation, and boosting exports.

• Positioning the U.S. as a global innovator in technological advancements such as AI, green energy, and cybersecurity.

• Promoting inclusive growth, demonstrating America’s commitment to circular economic development that benefits all businesses, and its global reputation.

Supporting all types of under-resourced businesses ensures America remains a leader in trade, innovation, and economic influence.

4.  Strengthens National Security

Supporting America’s backbone is vital to our national security. By investing in the businesses that create two-thirds of net new jobs, we:

• Strengthen domestic supply chains to reduce reliance on foreign nations.

• Enhance cybersecurity and defense technologies by supporting all under-resourced businesses. 

• Stabilize local economies, reducing risks of economic collapse or social unrest.

• Continue to support enhancing a skilled workforce prepared for critical industries like healthcare, energy, and defense.

Investing in under-resourced businesses ensures the U.S. has a resilient economy and infrastructure, ready to face global and domestic challenges.

THE DANGERS ASSOCIATED WITH INACTION 

Failing to reframe and support all under-resourced businesses could lead to substantial consequences, including:

• Increased Job Losses: Approximately fifty percent of small businesses fail within five years, [8] endangering millions of jobs.

• Stifled Innovation: Neglecting these enterprises jeopardizes the potential for pioneering innovations and solutions to current challenges.

•  Widening Disparities: Businesses with limited resources would persist in confronting barriers related to labor, education, equipment, and capital, thereby deepening systemic gaps.

BRIDGING THE GAP BETWEEN COMPLIANCE, BUSINESS, AND SOCIETAL GOALS 

To address potential compliance concerns while also addressing the broader societal priorities, organizations must adopt a balanced approach that ensures adherence to anti-discrimination regulations while promoting inclusivity. Below are key strategies for moving forward.

#1: Reframe Messaging Around the Broader Community Impact, Rather Than a Particular Group

Emphasize how initiatives generate value for the wider community, rather than focusing exclusively on identity-specific groups within a particular geographic region. This can be achieved by removing specific geographic and identity-specific references that are solely based on experiences inherently associated with a protected group, thus concentrating on the overarching objective of reducing disparities without suggesting any bias. For example: 

• Instead of: “We narrowed the socioeconomic gap among ethnic minority-owned business owners within the 00000-zip code.” 

• Use: "We worked to reduce socioeconomic disparities by empowering under-resourced businesses to optimize their resources effectively, fostering greater collaboration among businesses and amplifying their overall socioeconomic impact."

#2: Adopt a Resource-Based Framework

Organizations can shift their messaging from identity-specific framing to a resource-based framework that addresses systemic barriers without relying on protected class characteristics. This approach aligns with compliance requirements while upholding a commitment to inclusivity.

Actionable Steps:

• Redesign programs, missions, and initiatives to be universally accessible using neutral criteria like financial need, geographic limitations, or enterprise size.

• Prioritize addressing systemic barriers, such as a lack of access to capital, information, or technology, through programs aimed at building capacity and resilience.

#3: Leverage Stakeholder Impact Value Data (SIVD) to Gain Insights

The intelligence gained from SIVD provides more comprehensive data, enabling more accurate measurements and comparisons of current and historical trends, perceptions, practices, and their resulting impacts. Stakeholder Impact Value Data includes metrics that measure the value an organization provides to its stakeholders—such as customers, employees, investors, suppliers, communities, and the environment. Utilizing proprietary tools to capture, analyze, and manage this data focuses less on simply counting outputs and more on understanding the complex inputs and outcomes associated with human behavior and societal structures that drive positive change.[9]

Actionable Steps:

• Use proprietary socio-economic and environmental impact tools to capture, analyze, and manage stakeholder value impact data effectively. These tools focus on gathering metrics related to an organization's impact on its customers, employees, investors, suppliers, communities, and the environment.

• Regularly analyze the collected SIVD data to evaluate how effectively an organization, irrespective of its size, meets stakeholder impact perceptions. Utilize these insights to inform decision-making and align organizational strategies to maintain and improve brand positioning.

#4: Focus on Skills, Qualifications, and Measurable Outcomes

Both compliance and societal objectives are advanced by basing decisions on objective, measurable criteria directly tied to improving resourcefulness. 

Actionable Steps:

• Assess the impact of upskilling, certifications, or training experiences in enhancing business resourcefulness. This ongoing evaluation not only verifies the effectiveness of programs and initiatives but also provides actionable insights for addressing resource gaps, thereby optimizing operational efficiency and fostering growth.

• Use SIVD metrics to measure the real-world impact of initiatives, demonstrating their alignment with both organizational and societal goals.

#5: Combine Success Stories and Stakeholder Impact Value Data to Document and Monitor Impact

By combining success stories with historical and real-time SIVD data, organizations can showcase how resources lead to sustainable impact. This method emphasizes tangible results and tackles ongoing challenges, crafting compelling narratives that underline the importance of maintaining impactful programs and initiatives. Impact measurement isn’t solely for accountability—it also fosters learning, improvement, and better outcomes for the people and communities served. When executed effectively, measurement, evaluation, and learning help your organization concentrate on what truly matters. [10]

Actionable Steps:

• Refrain from emphasizing merely success stories; instead, utilize SIVD data such as employee retention rates, community engagement metrics, and primary economic impact data to demonstrate the organizations that maintain a broad and sustained community influence.

• Share economic and environmental impact reports with internal and external stakeholders to build trust and ensure transparency.

#6: Structure Issues Based on Their Impact Rather than Identity-Specific Framing

Focus on how programs contribute to the broader community rather than exclusively tailoring solutions to specific identity groups. For example: 

• Instead of: “We support and empower socially and economically disadvantaged businesses (SEDBs).” 

• Use: “We offer financial literacy training and access to capital resources tailored to historically under-resourced businesses, enhancing their capacity to expand and develop resilient enterprises.”

#7: Integrate Sustainability and Circularity to Promote Ongoing Pliability 

Sustainability emphasizes fulfilling present needs without compromising the ability of future generations to meet their own needs, while circularity concentrates on establishing closed-loop systems where resources are continuously reused. By illustrating how programs and partnerships align with these principles, organizations can attract dedicated stakeholders and ensure a lasting impact.

Actionable Steps:

• Implement processes and systems that prioritize resource efficiency and reuse, such as recycling programs, upcycling initiatives, or product lifecycle management. This ensures that businesses adopt sustainable and circular practices that create a broader societal impact.

• Engage with suppliers, partners, and design initiatives that explicitly endorse sustainability and circular business principles. Convey these endeavors to stakeholders, demonstrating measurable results to attract committed partners and reinforce the organization's commitment to long-term societal impact.

#8: Reorient Messaging to Represent Historical Realities Without Perceived Bias 

Nigel Stephens, the founder of Phoenix Strategies, Inc., emphasizes the increasing scrutiny of Diversity, Equity, and Inclusion (DEI) and Supplier Diversity initiatives. He observes that “organizations must navigate elevated legal and reputational risks associated with identity-specific messaging.” [11] This necessitates, regardless of organizational size, the use of thoughtful and balanced terminology that fosters fairness, inclusivity, and optimism while ensuring adherence to regulations. Organizations can then effectively communicate a positive and compelling message regarding their dedication to fairness and equity for all.

CONCLUSION

By understanding the strategic need for reframing terminology, policies, and business practices that focus on supporting under-resourced businesses, organizations create a balanced approach to promoting fairness, inclusivity, optimism, and compliance, while also combating evidence of systemic barriers to foster meaningful and enduring positive change for both individuals and society at large.  This reframing represents more than mere economic policy; it constitutes a strategic investment in the future of America and a dedication to cultivating a more sustainable society. Micro and small enterprises constitute the backbone of local economies, generating employment, fostering innovation, and stimulating growth in ways that have far-reaching impacts across entire communities. 

Rather than focusing exclusively on identity-specific policies, programs, and initiatives, organizations of all sizes must acknowledge the pervasive nature of these enterprises — each of these entities is inadequately resourced in some capacity, regardless of self-identification.  For America to maintain its competitive edge, it is essential to adopt a broader perspective that redefines how actions and investments promote engagement, empower enterprises, ensure compliance, and develop resilient, sustainable communities that prosper for generations to come.  

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[1]  "Strength-Based Communication Guide," Prosper Strategies.

[2] U.S. Small Business Administration Office of Advocacy. (2018, December 19). Advocacy Releases “Small Business GDP, 1998–2014.” Economic Studies. https://advocacy.sba.gov/2018/12/19/advocacy-releases-small-business-gdp-1998-2014/

[3] Leppert, R. (2024, April 22). A look at small businesses in the U.S. Pew Research Center. https://www.pewresearch.org/short-reads/2024/04/22/a-look-at-small-businesses-in-the-us/

[4] Ibid.

[5] Ibid.

[6] Ibid.

[7] U.S. Small Business Administration Office of Advocacy. (2018, December 19). Advocacy Releases “Small Business GDP, 1998–2014.” Economic Studies. https://advocacy.sba.gov/2018/12/19/advocacy-releases-small-business-gdp-1998-2014/

[8] https://www.forbes.com/councils/forbestechcouncil/2024/02/27/decoding-small-business-failures-top-four-contributing-factors/

[9] "Stakeholder Value Measurement," Sustainability Directory.

[10] "What Is Impact Measurement and How Can Organizations Use It?" Bridgespan Group.

[11] Quote from Nigel Stephens, LinkedIn, “According to Nigel Stephens, founder and principal of the Washington, DC-based government and public affairs firm, Phoenix Strategies, Inc., “The process of dismantling Diversity, Equity, and Inclusion (DEI) and Supplier Diversity programs and initiatives has been a protracted challenge over several years. In light of the evolving public perspective on DEI and inclusive procurement sourcing, measures have been implemented to prohibit DEI; however, the judiciary has demonstrated a nuanced approach in its rulings, particularly in limiting the application of racial and gender considerations, especially race-based presumptions of disadvantaged status. Furthermore, there remains a lack of guidelines delineating what constitutes ‘illegal DEI’ and what is considered to be ‘inclusive.’ Consequently, organizations should remain vigilant regarding the heightened scrutiny and potential threats associated with the emphasis on identity-specific messaging as they navigate this complex and rapidly evolving environment.”

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REFERENCES

Bridgespan Group. (n.d.). What is impact measurement and how can organizations use it? The Bridgespan Group. Retrieved from https://www.bridgespan.org/insights/library/philanthropy/impact-measurement

Forbes Technology Council. (2024, February 27). Decoding small business failures: Top four contributing factors. Forbes. Retrieved from https://www.forbes.com/sites/forbestechcouncil/2024/02/27/decoding-small-business-failures-top-four-contributing-factors

Leppert, R. (2024, April 22). A look at small businesses in the U.S. Pew Research Center. Retrieved from https://www.pewresearch.org/short-reads/2024/04/22/a-look-at-small-businesses-in-the-us

Mission Minded. (2022). 7 questions to make your messaging more inclusive. Mission Minded. Retrieved from https://mission-minded.com/7-questions-to-make-your-messaging-more-inclusive

Prosper Strategies. (n.d.). Strength-based communication guide. Prosper Strategies. Retrieved from https://prosper-strategies.com/strength-based-communication-guide

Stephens, N. LinkedIn. 

Sustainability Directory. (n.d.). Stakeholder value measurement. Sustainability Directory. Retrieved from https://sustainabilitydirectory.com/stakeholder-value-measurement

U.S. Small Business Administration, Office of Advocacy. (2018, December 19). Small business GDP, 1998–2014. Retrieved from https://advocacy.sba.gov/2018/12/19/advocacy-releases-small-business-gdp-1998-2014/

U.S. Attorney General. (2025, July 29). Guidance for recipients of federal funding regarding unlawful discrimination. Washington, D.C.: U.S. Department of Justice.