From the Advocate

By Tara Lynn Gray 

July 2025

Breaking Down Barriers: Empowering California’s Diverse Entrepreneurs with SCALE

This month we are doing things a little differently. We’re sharing an interview I did with David Ponraj of the Economic Impact Catalyst for the Breaking Down Barriers Podcast.  In this episode we explore the state’s innovative technical assistance program and its mission to democratize access to capital for underserved entrepreneurs. From success stories like a San Diego doctor’s journey through faith-based workshops to the transformative potential of mesh networks, discover how California is reimagining small business support. I had the opportunity to share my insights on scaling support for solopreneurs, implementing Governor Newsom’s equity-focused executive order, and leveraging SSBCI 2.0 funding to create a more inclusive entrepreneurial ecosystem. Whether you’re a small business owner or passionate about economic development, this conversation offers a compelling look at how California is working to bridge the gap between innovation and opportunity. Listen to the Podcast Here

We’re recording part 2 to the conversation soon, so be sure to get subscribed for that.

For those that enjoy a good read as well, we did a blog post with great information about the progress we’re making which has been reproduced below.

From Barriers to Bridges: California’s Innovation Blueprint for Small Business Success

California is home to over 4.3 million small businesses, making it the most diverse and vibrant small business community in the nation. These small businesses represent the entrepreneurial spirit of their owners and provide nearly half of all private-sector jobs, creating economic opportunities and contributing to our state’s thriving economy. As the Director of the California Office of the Small Business Advocate (CalOSBA), I am committed to ensuring that every entrepreneur has the opportunity to succeed—regardless of their background. The SCALE (Success, Capital Access, and Leadership for Entrepreneurs) program is designed to realize this vision by breaking down barriers and democratizing access to capital for all.

The Vision Behind Scale

My journey into small business advocacy began with the influence of my grandmother, who was an entrepreneur herself. Watching her connect with her community, lead by example, and navigate the challenges of running a business left a lasting impact on me. This passion for empowering small business owners has been the driving force behind my work. I believe that no city, region, or state can truly thrive without putting small businesses at the core of every economic strategy.

SCALE embodies this vision. The program aims to break down the barriers that have long prevented marginalized entrepreneurs from scaling their businesses and achieving their dreams. By providing not only access to capital but also mentorship, technical assistance, and leadership development, SCALE is creating the necessary conditions for entrepreneurs to succeed and thrive

Breaking Down Barriers to Capital

Despite California’s progressive stance, the reality remains that many businesses continue to face challenges in accessing the capital they need.

This is not merely a financial issue; it is about ensuring equity, opportunity, and the promise of a better future for all. Through SCALE, we are addressing these disparities head-on by providing wraparound services that include access to capital, business coaching, and leadership development.

We are not just talking about capital. We are talking about empowerment— empowering business owners to take charge, to dream big, and to succeed on their terms. SCALE is designed to do exactly that, by building a thriving entrepreneurial ecosystem where diverse businesses have every opportunity to flourish.

The Mesh Network Model: Building Connections for Success

One of the most innovative aspects of SCALE is the transition from a traditional hub- and-spoke model to a connected mesh network. In a hub-and- spoke model, a single point of failure can disrupt the entire system—something that no small business can afford. The mesh network model, on the other hand, places small businesses at the center, allowing them to access support from multiple points across the network, providing redundancy and resilience.

This approach fosters collaboration among technical assistance providers, capital providers, and community organizations. We are building an ecosystem where all stakeholders—investors, educators, technical experts—are aligned around one goal: the success of our small businesses. By connecting all the players, we are creating a more resilient and accessible system for small business growth.

Scale in Action: Real Stories of Impact

The true power of SCALE lies in its ability to transform lives. One story that stands out to me is that of a business owner who attended a regional workshop in San Diego.

Through the SCALE network, she received assistance to restructure her legal formation and improve her tax situation, allowing her to expand her practice and hire more employees. This transformation is exactly what we envisioned with SCALE—helping solopreneurs become employer firms and creating pathways for generational wealth.

Another vital aspect of SCALE is our proactive outreach. By partnering with local organizations and leveraging CalOSBA’s extensive network, we reach entrepreneurs where they are, ensuring that even the most underserved communities have access to the resources they need to succeed. We go to where the entrepreneurs are, not the other way around, and this approach has been instrumental in expanding our reach and impact.

Expanded Access Through CalOSBA’S Programs

At CalOSBA, we operate several initiatives to support small businesses, including the Technical Assistance Program (TAP), the Capital Infusion Program (CIP), and the Accelerate CA Inclusive Innovation Hub program. TAP provides $23 million annually to support consulting and training services for small businesses, prioritizing underserved communities. CIP, funded at $3 million annually, assists small businesses with strategic initiatives such as market expansion and capital acquisition.

The Accelerate CA Inclusive Innovation Hub program focuses on accelerating the growth of technology and science-based firms, with a particular emphasis on diverse founders, including women and people of color. These programs ensure that entrepreneurs have access to the tools, mentorship, and funding necessary to succeed in California’s competitive business landscape.

PINNACLE: Extending the Reach of SCALE

PINNACLE is an extension of the SCALE program, designed to further empower small businesses by providing targeted support for procurement opportunities and specialized capital. Through PINNACLE, we are strengthening pathways for entrepreneurs to access non-dilutive, procurement- based, and equity capital, ensuring that small businesses have the resources they need to compete and thrive.

Looking Ahead: A Vision for Inclusive Growth

I see California at the forefront of inclusive economic growth. With SCALE and the extension through PINNACLE, our focus is not only on providing capital but also on ensuring that small businesses are ready to seize large-scale opportunities. California’s $180 billion infrastructure investment presents an unprecedented opportunity for diverse entrepreneurs to participate in transformative projects that will shape the future of our state.

We are building a California where every small business—regardless of its size, background, or starting point—has the opportunity to reach the pinnacle of success. This isn’t just about meeting requirements; it’s about creating change. It’s about building a future where every entrepreneur can thrive and contribute to the California Dream.

SCALE and its extension, PINNACLE, are more than just programs—they are a movement to create equitable opportunities for all of California’s small business owners. By breaking down barriers to capital, fostering a connected support network, and providing comprehensive wraparound services, we are empowering entrepreneurs to achieve their dreams. California must be a place of opportunity for all, and with SCALE and PINNACLE, we are transforming lives, uplifting communities, and building a better future for everyone.

Republished courtesy of EIC

Tara Lynn Gray was sworn in on April 26, 2021 as the fifth Director of the California Office of the Small Business Advocate. She serves in the Governor’s Office of Business and Economic Development as the voice for California’s 4.3 million small businesses. Closing opportunity gaps, the role of women and diverse business leaders, and expanding procurement opportunities are recurrent themes in her advocacy work.