MBDA Summit: Advocacy

On July 6th and 7th, MBDA hosted a meeting of leaders in the minority business community, including program directors and advocates, to review and benchmark progress regarding the state of minority businesses.  The goal of the meeting was to establish a blueprint for minority business development programs that can be implemented by the public and private sectors in the future.

From the meeting, common themes emerged from the conversations.  MBDA is opening the discussion to include a variety of stakeholders in minority business success- we welcome your comments and suggestions.

The question that was asked is this:

What advocay activities and actions do you recommend can be encouraged or taken to promote the economic development and growth of MBEs?

The common themes include the following:

• All of the minority chambers and like-minded groups need to advocate in one single voice.

• The minority chambers and like-minded groups should think about forming a coalition for better unity and strength in numbers.

• Either or both organizations need to be legally allowed to lobby.

• MBDA should play an active role in a new combined chamber organization or coalition.

• The minority business community needs to be trained and educated in advocacy at the federal, state and local level.

• The minority business community needs to be aware of how and when federal, state and local laws are enacted so that they can effectively impact legislation that affects their daily lives.

• Minority business leaders need to connect and meet with lawmakers so they know and understand their issues.

• Minority businesses need strong and frequent economic data to make the business case and back up the advocacy efforts

• MBDA needs to publicize each of their success stories so lawmakers understand the positive impact in their community.

• The private sector needs to be an equal partner in advocacy. They need to tell other companies the benefits of working with minority business.

• MBDA needs the power to enforce the current minority business goals.

• MBDA funded centers need more resources dedicated to outreach and advocacy.

We would appreciate your comments and suggestions on the topic, to see participants specific comments per topic, please click here.

**This post contains the comments provided by participants at the Minority Business Development Agency Summit held on July 6 – 7, 2009 at the Hyatt Regency Washington on Capitol Hill.  Participants provided input on strategy, enforcement mechanisms, and legislation that may assist minority entrepreneurs in the future.  Note-takers memorialized the comments made at each of the tables.  These materials are being provided in raw data format and are for informational purposes only.  The views expressed herein are those of the participants and do not necessarily reflect those of MBDA or of the U.S. Department of Commerce.

What does the American Recovery and Reinvestment Act mean for minority businesses?

The American Recovery and Reinvestment Act (ARRA) makes a long-overdue and historic investment in our national infrastructure – including roads, bridges, public transit, housing and broadband – to save or create nearly 400,000  jobs for American workers today and power enhanced economic growth for decades to come.

The Act includes $150 billion in new federal infrastructure funding that reflects President Obama’s belief that we can only strengthen our economy by investing in local economies.  For more information related to the Act, please visit www.recovery.gov.

Some of these projects include:

• Investing more than $17 billion in public transit and high speed rail to reduce our dependence on foreign oil.
• Safeguarding the roads, bridges, dams, ports, rail and water systems our families use everyday with an historic $40 billion, two-year investment.
• Expanding broadband throughout America.
• Making an historic$25 billion investment in school construction, sufficient to renovate and modernize 10,000 schools.

What should minority businesses do to ready themselves for opportunities?

Contracting opportunities made possible through the ARRA will be done no differently than any other government contracting opportunities.  MBDA recommends that minority businesses:

• Register in the Central Contracting Registry (CCR) www.ccr.gov.  Or, if you are already registered, please make sure your profile is up to date with correct contact information, capabilities, bonding and most importantly, past performance.
• Register with MBDA’s Phoenix Opportunity Matching System and visit your local MBDA Minority Business Center.  For a listing of the nearest MBDA center, please go to www.mbda.gov.
• Be on the lookout for “Sources Sought” and “Request for Information (RFIs).  If you are contacted regarding an opportunity, please respond as soon as possible.
• Make contacts and build relationships.  Some contracts may be large and/or bundled, but by building strategic partnerships with other companies, your minority business can still be part part of the work.  Firms which are 8(a)s, in the GSA Schedule, women-owned businesses, Historically Black Colleges and Universities (HBCUs), Tribal Colleges and Universities (TCUs), Service Disabled Veteren Owned businesses, Native tribes, businesses in HUB zones: are state certified and have a strong past performance haev a competitive advantage for shovel ready projects.
• Keep informed by visiting www.recovery.gov, www.fedbizopps.gov, and www.grants.gov to make sure you are aware of every opportunity your minority business could qualify for.

At MBDA,we are working to ensure that qualified minority businesses are considered for contracts and opportunities the ARRA provides.  We have been working with the Department of Transoprtation, the Army Corps of Engineers, the Small Business Administration, and the National Telecommunications and Information Administration.  In addition, the MBDA Regional Offices and minority business centers across the country are meeting with state and local officials to discuss potential projects and matches with qualified and skilled minority businesses on the local level.

Together, we can rebuild America’s infrastructure to ensure jobs and economic growth for future generations of Americans.

MBDA Marks 40 Years Promoting Competitive Business Growth

On March 5, 1969, President Richard Nixon established what is today called the Minority Business Development Agency (MBDA) at the U.S. Department of Commerce.  Over the last four decades, MBDA has promoted the establishment and growth of minority businesses in the United States.  MBDA is the only federal agency tasked with advancing the competitiveness of minority businesses and throughout the year will be highlighting those minority businesses that have benefited from MBDA programs and the people and communities it has impacted.

MBDA prides itself on remarkable success.  In 2008, the Agency ranked as one of the top three bureaus within the U.S. Department of Commerce and touched more than 25,000 minority businesses, in turn, they created more than 5,000 new jobs.  In addition, MBDA programs generated $1.85 billion in terms of dollar value of contract and financial awards to minority businesses.

There were just 322,000 minority businesses in 1969 generating approximately $11 billion in annual gross receipts.  Today, the number of minority firms is more than 4 million.  These firms generate approximately $660 billion in gross receipts and employ apprximately 4.7 million workers.

While the growth rate of minority businesses has been remarkable, it has not kept pace with the growth of the minority population.  In fact, if minority businesses had grown in pace with the minority population explosion, it would mean an additional 2.4 million firms and gross receipts of $2.5 trillion – that’s nearly four times the current amount of gross receipts.

In addition, 16.1 million more workers would have jobs.

As you can see, the success and growth of minority firms is directly linked to the success and growth of the American economy.

Why?

According to the U.S. Census Bureau, by 2042 there will be a remarkable shift in the demographics of America.  We will once again be a country of immigrants – primarily people of color.  Based on this shift, minority entrepreneurs  are in a unique position to generate long-term employment and economic sustainability in their communities – and for the United States.

For the next generation of minority entrepreneurs, MBDA will focus on preparing minority business owners to grow in size, scale and capacity – further enabling competition in the global economy.