Report on the Developing and Empowering our Aspiring Leaders (DEAL) Act and its Alignment with Sustainable Development Goals

Legislative Progress and Stated Objectives

The House Financial Services Committee has advanced the Developing and Empowering our Aspiring Leaders (DEAL) Act, legislation introduced by Congresswoman Ann Wagner. The Act is designed to address systemic challenges faced by small businesses and entrepreneurs in securing investment capital.

The primary objectives of the legislation are as follows:

• To dismantle barriers preventing small businesses and entrepreneurs from accessing necessary capital.
• To support small enterprises as key drivers of economic growth.
• To facilitate the creation of well-compensated employment opportunities.
• To remove prohibitive regulations that impede innovation and business development.

Core Alignment with SDG 8: Decent Work and Economic Growth

The DEAL Act directly supports the targets of Sustainable Development Goal 8, which aims to promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.

1. Target 8.3: By focusing on improving access to financial services for entrepreneurs and small businesses, the Act directly aligns with the goal of promoting development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation.
2. Target 8.2: The legislation seeks to stimulate economic growth and support innovators, contributing to the achievement of higher levels of economic productivity through diversification and innovation.

Contributions to Additional Sustainable Development Goals

Beyond its primary focus on economic growth, the DEAL Act contributes to a broader range of SDGs, creating a more holistic impact on sustainable development.

• SDG 9: Industry, Innovation, and Infrastructure: By providing capital to innovators and entrepreneurs, the Act fosters a more inclusive and sustainable industrialization. It supports the development of a resilient infrastructure for business growth, which is essential for a dynamic and innovative economy.
• SDG 10: Reduced Inequalities: Enhancing access to capital can reduce economic inequalities by providing opportunities for individuals and communities that have been historically underserved by traditional financial systems. This promotes more equitable participation in the economy.
• SDG 1: No Poverty: Through the stimulation of economic growth and the creation of “good-paying jobs,” the Act serves as an instrument for poverty reduction, providing stable livelihoods and increasing household economic security.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

SDG 8: Decent Work and Economic Growth

The article directly connects to SDG 8 by focusing on policies designed to foster economic vitality. The statement emphasizes that “Small businesses and entrepreneurs drive innovation” and that the DEAL Act aims to “support small businesses as they stimulate economic growth and support good-paying jobs.” This aligns with the goal of promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.

SDG 9: Industry, Innovation and Infrastructure

The article’s emphasis on “innovation” and removing “unnecessary regulations that prevent innovators from reaching their full potential” links to SDG 9. Furthermore, the core issue addressed by the DEAL Act is that small businesses “have trouble accessing capital.” This directly relates to building resilient infrastructure, promoting inclusive and sustainable industrialization, and fostering innovation, particularly by improving access to financial services for small-scale enterprises.

2. What specific targets under those SDGs can be identified based on the article’s content?

SDG 8: Decent Work and Economic Growth

1. Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services.

• Explanation: The DEAL Act is presented as a policy that supports “entrepreneurs,” “innovation,” “small businesses,” and “good-paying jobs.” The act’s central purpose of helping businesses with “accessing capital” directly corresponds to the target’s mention of “access to financial services.”

SDG 9: Industry, Innovation and Infrastructure

1. Target 9.3: Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit, and their integration into value chains and markets.

• Explanation: The article explicitly states that small businesses “have trouble accessing capital.” The DEAL Act is designed to “take down the barriers facing them,” which directly aligns with the objective of increasing access to financial services for small enterprises as outlined in Target 9.3.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article, being a political statement, does not cite official SDG indicators. However, it implies several metrics that could be used to measure the success of the DEAL Act, which in turn align with the goals of the identified targets.

Implied Indicators for Target 8.3

• Rate of job creation: The statement that the act will “support good-paying jobs” implies that a key measure of its success would be an increase in the number of jobs created by small businesses.
• Rate of new business formation: The focus on “entrepreneurs” and “small businesses” suggests that an increase in the number of new businesses would be a relevant indicator of progress.

Implied Indicators for Target 9.3

• Volume of capital accessed by small businesses: The primary problem identified is that businesses “have trouble accessing capital.” Therefore, a direct indicator of progress would be the amount of capital or credit successfully obtained by small businesses after the act’s implementation. This aligns with the intent of official Indicator 9.3.2 (Proportion of small-scale industries with a loan or line of credit).

4. Create a table with three columns titled ‘SDGs, Targets and Indicators” to present the findings from analyzing the article.

Source: wagner.house.gov