Enhancing Support for Lower-Income Entrepreneurs - Through Major Public Systems

Sep 19, 2026

Report examines how federal, state, and local governments can embed entrepreneurship support into major public systems to help lower-and moderate-income (LMI) microbusiness owners. It outlines policy recommendations across tax, postsecondary education, and workforce systems, targeting barriers such as limited access to capital, low savings, and insufficient business development services. Includes calls to improve tax credits, expand tax assistance capacity, strengthen microfinance and career-to-college funding integration, and adjust workforce measures to enable self-employment success.

LanguageEnglish

CategoryPresentations

FormatPDF

Pages22

Reading Time8 min

AccessFree to download

Summary of Policy Recommendations

Tax System Recommendations

Postsecondary Education System Recommendations

Workforce System Recommendations

About This Report

Enhancing Support for Lower Income Entrepreneurs THROUGH MAJOR PUBLIC SYSTEMS Katherine Lucas McKay, Lauren Williams, Alicia Atkinson and Ezra Levin ACKNOWLEDGEMENTS CFED gratefully acknowledges the Annie E. Casey Foundation for its support of our work to enhance the financial security of low-and moderate-income entrepreneurs, including support for this publication. We are particularly thankful for the support and collaboration of Patrice Cromwell and Patrick Hain. We also extend special thanks to Brendan Buff, CFED intern, for his assistance throughout the development of this publication. This report is the product of numerous interviews and correspondence with practitioners, researchers and advocates in a variety of sectors. We thank the following people for generously sharing their expertise, answering our questions, connecting us with new organizations and providing feedback: Emily Breedlove, AdvantageWest Vanessa Carter, Lend for America Maureen Conway, Workforce Strategies Initiative at the Aspen Institute Beth Dowd, Initiative for a Competitive Inner City Steve Dubb, The Democracy Collaborative Martin Feeney, Association for Enterprise Opportunity Larry Good, Corporation for a Skilled Workforce Susan Gooding, Wilder School of Government and Public Affairs, Virginia Commonwealth University Elsie Harper-Anderson, Wilder School of Government and Public Affairs, Virginia Commonwealth University Brian Hull, Initiative for a Competitive Inner City Joyce Klein, FIELD at the Aspen Institute Conan Knoll, Small Business Majority Eugene Steuerle, Urban Institute Eric Toder, Urban Institute Heather Van Sickle, National Association for Community College Entrepreneurship Jen Worth, American Association of Community Colleges Kim Zeuli, Initiative for a Competitive Inner City PAGE 2 | ENHANCING SUPPORT FOR LOWER-INCOME ENTREPRENEURS THROUGH MAJOR PUBLIC SYSTEMS SUMMARY OF POLICY RECOMMENDATIONS We recognize that federal, state and local governments each play key roles in setting and implementing policies for tax, postsecondary education and workforce systems, and have structured our recommendations to be relevant to audiences at any level, with particular focus on federal-level opportunities. Tax System Recommendations: 􀂄 Improve the Earned Income Tax Credit for all workers, including the self-employed. 􀂄 Provide tax relief for newly self-employed individuals and microbusiness owners. 􀂄 Create Retirement Bonds that are easily accessible by the self-employed through purchases made during tax filing. 􀂄 Simplify and expand the Saver’s Credit to help LMI microbusiness owners save for retirement. 􀂄 Expand the Volunteer Income Tax Assistance Program’s capacity to help LMI microbusiness owners navigate the complexity of the tax system. 􀂄 Coordinate grant-making across tax outreach and compliance programs. Postsecondary Education System Recommendations: 􀂄 Support the student-powered microfinance movement: develop materials these organizations can use to build volunteer capacity and effectively reach business owners in their communities. 􀂄 Create a Community College to Career Fund that fully integrates entrepreneurship within the larger strategy of preparing students for productive, highskill careers. 􀂄 Integrate financial education and entrepreneurship education. Workforce System Recommendations: 􀂄 Enable more states to offer the Self-Employment Assistance (SEA) Program to unemployed workers. 􀂄 Amend the Workforce Investment Act (WIA) performance measures in order to facilitate delivery of entrepreneurship training and development services and help workforce clients succeed in self-employment. 􀂄 Support community partnerships that advance economic growth through integrated economic development, education, workforce and small business strategies. ABOUT THIS REPORT reating and owning a business has long been heralded asa path to financial success and economic mobility. In fact

FAQs

Why focus on major public systems for lower-income entrepreneurship support?

Because tax, postsecondary education, and workforce systems already provide some entrepreneurship services at scale, enabling outreach to millions more current and potential LMI microbusiness owners.

What tax-related recommendations are proposed in the report?

The report recommends improving the Earned Income Tax Credit, providing tax relief for newly self-employed and microbusiness owners, creating retirement bonds accessible during tax filing, simplifying and expanding the Saver’s Credit, and expanding VITA capacity and coordinating grant-making across tax outreach and compliance.

How does the report propose changing workforce support for unemployed workers?

It recommends enabling more states to offer the Self-Employment Assistance (SEA) Program and amending Workforce Investment Act performance measures to facilitate entrepreneurship training and development services so workforce clients can succeed in self-employment.

Sep 19, 2026

Upload by WPS_1786070896