Policy updates could significantly impact entrepreneurs with disabilities

Individuals with disabilities face significant challenges in the United States when it comes to employment and economic well-being. Despite advancements in disability rights, people with disabilities still struggle to find work. The Bureau of Labor Statistics reports that the unemployment rate for individuals with disabilities was 7.2% in 2023, twice the rate of those without disabilities. Entrepreneurship often appeals to individuals with disabilities as it allows them to work on their own terms and utilize their unique skills without facing workplace biases. However, there are many barriers that prevent disabled entrepreneurs from succeeding.

One major issue faced by entrepreneurs with disabilities is the income and asset caps that threaten crucial benefits like Medicaid and Medicare. Many individuals choose to keep their businesses small to maintain their benefits, hindering their potential for growth. People of color with disabilities face even greater obstacles when trying to start their own business. Existing policies do not adequately support disabled individuals in entrepreneurship, creating unnecessary hindrances.

Government programs often do not cater to the needs of disabled entrepreneurs. The Small Business Administration’s procurement goals do not consider businesses owned by individuals with disabilities as socially and economically disadvantaged. Additionally, assistance programs are limited, with few resources allocated specifically for entrepreneurs with disabilities. Vocational rehabilitation programs also fall short in supporting self-employment for individuals with disabilities, resulting in low rates of entrepreneurship among this group.

In order to better support disabled entrepreneurs, policy reforms are necessary. The Small Business Administration and vocational rehabilitation programs should be modified to provide more support for entrepreneurship and small business ownership. Technical assistance grants should be made available to community nonprofits led by individuals with disabilities, and vocational rehabilitation programs should increase access to entrepreneur incubators and accelerators. Income and asset caps that threaten government benefits for disabled individuals should be raised to allow for greater financial stability.

Proposals such as the Work Without Worry Act, the SSI Savings Penalty Elimination Act, and the Supporting Disabled Entrepreneurs Act aim to expand opportunities for disabled individuals. These bills seek to eliminate work disincentives, update asset limits, and gather data on disabled entrepreneurs participating in SBA programs. Provisions related to ABLE accounts also provide opportunities for individuals with disabilities to save and work without losing essential support.

While these proposals are a step in the right direction, more comprehensive reforms are needed to create a more inclusive society. Policymakers should continue to work towards removing barriers to work and saving, as well as supporting entrepreneurship for individuals with disabilities. By enacting these reforms, we can pave the way for a more equitable and accessible society where individuals with disabilities can thrive in the workforce and as entrepreneurs.