St. Louis Small Business Ecosystem Assessment

St. Louis Small Business Ecosystem Assessment

Building a More Inclusive and Resilient Small Business Economy

Research by Next Street and Common Future

Executive Summary

St. Louis has a growing entrepreneurial ecosystem, but significant disparities in business ownership, access to capital, and economic opportunity continue to impact entrepreneurs of color. The St. Louis Small Business Ecosystem Assessment examines the barriers facing small businesses and outlines strategies to build a more coordinated, equitable, and growth-oriented ecosystem.

Key Findings

  • Persistent Ownership and Growth Gaps: Black entrepreneurs remain underrepresented among employer businesses and face ongoing barriers to capital, networks, mentorship, and growth opportunities.

  • A Significant Capital Access Challenge: The region faces an estimated $13 billion annual small business capital gap, limiting access to microloans, startup financing, growth capital, and affordable lending options.

  • Main Street Businesses Need Greater Support: Many support resources are concentrated in high-growth sectors, leaving neighborhood businesses and Main Street entrepreneurs with fewer pathways to growth.

  • Ecosystem Fragmentation Limits Impact: Business support organizations, capital providers, and economic development partners often operate independently, making resources difficult to navigate and reducing overall effectiveness.

  • COVID-19 Exposed Existing Inequities: The pandemic disproportionately impacted businesses owned by people of color and highlighted the need for coordinated support systems, flexible capital, and long-term resilience strategies.

Strategic Priorities

The report identifies three priorities to strengthen St. Louis' small business ecosystem:

  • Ecosystem Building: Improve coordination, referral systems, and alignment across ecosystem stakeholders.

  • Holistic Business Support: Expand culturally relevant advising, mentorship, navigation services, and long-term business support.

  • Continuum of Capital: Increase access to microloans, alternative lending, startup capital, and growth financing.

The Opportunity

St. Louis has the opportunity to build a more inclusive entrepreneurial economy by strengthening ecosystem coordination, expanding access to capital, and supporting small businesses throughout their growth journey.

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Explore the complete assessment for deeper insights into capital access, ecosystem gaps, and strategies to support inclusive economic growth in St. Louis.



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