According to the U.S. Small Business Administration, 29% of all businesses in the U.S. (8 million businesses!) are owned by minorities. In 2012, minority-owned businesses contributed $1.38 trillion in revenue and 7.2 million jobs to the U.S. economy. Unfortunately, these businesses earn significantly less revenue and employ far fewer people than they should (disparities exist among American Indian-, Asian-, black-, and hispanic-owned businesses). One way that minority-owned businesses can increase earnings and longevity is by leveraging incentive programs offered by government agencies throughout the country.
Several laws require a percentage of government funds to be spent on minority-owned contractors. Governments contract for services ranging from accountants to artists to engineers to event planners to landscapers to lawyers, to name a few. Basically, if your business is at least 51% minority owned, you could be missing out on the largest client of your life just because you haven’t looked into becoming a certified minority-owned business and sought out government contracts.
What are you leaving on the table as a non-certified minority-owned business?
The federal government aims to award 5% of all federal contracting dollars to “small disadvantaged businesses” each year. It does so by giving sole source (non-competitive) awards, set-asides, and technical assistance to qualifying businesses. To qualify, a business must be 51% owned and controlled by a U.S. citizen who is “economically and socially disadvantaged” (i.e., a member of a designated ethnic group) and meet other specific requirements.
Public transit, highway and other transportation-related projects may have specific requirements for “disadvantaged” or “equitable” business contracting. These projects are often funded by federal, state and local dollars and directly benefit minority-owned businesses.
Most government contracts are awarded through competitive bids, and many cities and counties provide “preference points” that help tip the scale in favor of certified disadvantaged business enterprises (“DBEs,” which often include minority-owned, women-owned, and disabled veteran-owned businesses).
Programs like these often include priceless benefits such as counseling, technical assistance and mentoring, which can help your business grow regardless of whether you get a contract. And, you just might get awarded a large, long-term, lucrative government contract that can dramatically change the course of your business. If you own or work for a minority-owned business, you should at least be certified with your local city and county agencies and monitoring contract opportunities.
The bad news: Working with the government involves A LOT of paperwork.
The good news: Working successfully with government departments to help you get what you need is kind of our thing.
If you’re interested in taking your business to the next level by applying for government certification and contracts, we’d love to help. Submit an intake form here. We’d love to help you.