An inclusive economy is no longer a moral aspiration or a side project. Business leaders must understand that without inclusion, we cannot create a resilient, growing economy that delivers sustainable returns for all.

In places where inclusion is part of the infrastructure of their economy—supply chains, procurement processes, capital access, or business ownership—people thrive. Inclusive economies create more resilience by expanding the base of potential business owners who can build, own, innovate, and hire. They allow more opportunities for homeownership and investing in the longevity of communities. As our economy becomes increasingly stratified and volatile, we need as much resiliency as we can get.

At Living Cities, our work with mayors, financial institutions, philanthropy, and community partners shows that places and companies that prioritize inclusion and equity reduce long-term risk, deepen trust, and create or identify new economic opportunities. Those that ignore the benefits of economic inclusion have capital, talent, and residents move elsewhere.

INCLUSION PROOF POINTS IN CITIES

Consider Memphis, where Black residents are a majority of the population but historically own only a fraction of local businesses. City and local partners supported the creation of Contractor’s University, a cohort model that equips small firms—many led by entrepreneurs of color—to bid on and win city contracts. Within months, participating firms converted training into new contracts and rising revenues. Contractor’s University was able to take one of the largest barriers to business success—accessing procurement dollars—and turned it into a growth platform.

In Miami, inclusive capital has become part of the city’s resilience strategy. Local leaders were able to preserve affordable space for dozens of small, often new American immigrant-owned businesses through partnerships with community organizations and investors to acquire commercial property in a cultural district. By partnering with local civic leaders, the City of Miami preserves both a burgeoning commercial corridor and future revenue streams.

In Austin, cultural incubators and entrepreneurial training programs are translating modest seed grants into new firms, jobs, and community wealth—because they have been able to offer the targeted support that entrepreneurs have been missing for generations to unlock growth opportunities and sustainable businesses.

WHAT BUSINESS LEADERS CAN DO DIFFERENTLY IN 2026

The question for business leaders and investors is no longer whether to support an inclusive economy, but how quickly to align their own practices and policies with what is already working. Three shifts can help leaders tap into the benefits of an inclusive economy:

• Redesign how capital moves. Replace audit underwriting and investment criteria with “bias-adjusted” frameworks that recognize the positive records of entrepreneurs and neighborhoods long labeled high-risk. Coupled with innovative credit products—such as first-loss capital, guarantees, and flexible lines of credit—changing the preconception of what makes a “risky” investment can lead to an expanded deal pipeline and more opportunities.
• Treat procurement as a growth engine. Moving beyond diversity pledges toward codified inclusive procurement standards that make it easier for local and small firms to become ongoing vendors. This means simplifying contracting processes, offering technical assistance, and publishing clear inclusion metrics tied to executive performance and cost savings from more resilient local supply chains.
• Invest in ownership, not just access. Support models that keep wealth rooted locally—cooperatives, employee ownership transitions, and community land trusts—by aligning corporate philanthropy, impact investing, and civic partnerships around shared-ownership pathways. In St. Paul, for example, a down-payment assistance program has invested in families who lost homes through the execution of the Federal Highway Act, stabilizing neighborhoods and the local economy.

A MANDATE FOR THE NEXT ECONOMY

The past year has been turbulent, from federal shutdowns to rising costs to contracting labor markets that strain both households and balance sheets. Yet we know the path forward: Cities are proving that local economies which expand the concept of who can be full participants are more productive, predictable, and investable.

In 2026, neutrality is not a safe middle ground. Choosing not to prioritize inclusivity and resilience is, in effect, choosing to operate inside an outdated standard for risk, talent, and growth. Business leaders who want to bring about the next era of American prosperity should spend 2026 re-committing to inclusion as a core economic strategy.

Joe Scantlebury is the CEO at Living Cities.