Days before Black Friday and Small Business Saturday shopping, New York City Public Advocate Jumaane D. WIlliams has released a new report, Diverse Entrepreneurial Inclusion, assessing the city’s support of Minority and Women-Owned Business Enterprises (M/WBEs). The report examines gaps in city contracting and proposes new ways to empower minority small business owners. It comes as conservative attacks on so-called ‘DEI’ programs have caused many businesses to abandon diversity programs.
“In New York City, we have long strived to celebrate diversity, recognizing it as a strength for not only our culture, but our economy. Small businesses built by immigrants, minorities, and women are at the core of our economic identity in this city – but too many systemic barriers still prevent these ventures from growing their bottom line and our economy,” said Public Advocate Jumaane D. Williams in releasing the report. “Many of the same critics that attack DEI principles are currently fanning the flames of hysteria about the incoming administration and its economic agenda, claiming it will harm businesses. But as this report demonstrates, the truth is that this can be a new era for business in New York City – strengthening the small and diverse businesses we are fortunate to have today, and supporting the entrepreneurs of tomorrow.”
The new report highlights both the importance of enterprises – often small businesses – owned by women and minorities, and the systemic barriers those businesses face. It argues that bolstering M/WBEs, supporting diverse entrepreneurs, is both socially and economically responsible, and in the city which serves as an economic engine for the world, this is an opportunity we have to embrace. It also applies these principles to specific programs that our city can improve and invest in to lift up historically marginalized groups and enterprises.
The report finds that small businesses, particularly M/WBEs, face a competitive disadvantage when pursuing city contracts compared to larger, longer-established, and often national or international corporations. This is one reason that M/WBEs are awarded only about 5% of city contracts, and that these small businesses need greater support to truly compete in procurement. M/WBE contracts with the city are also often relatively low in value.
Additionally, the report notes several instances in which emergency waivers were used to bypass processes which would have afforded M/WBEs a shot at contracts, including on migrant services, NYC Solves, and NYC Reads. In many instances, locally owned businesses may have avoided some of the ensuring problems – such as low quality or culturally insufficient food in shelters.
Moving into a new administration, the Public Advocate recommends that the city:
- Restore the Budget for the Department of Small Business Services
- Make the City’s Contract and Procurement Systems More Efficient
- Provide Transparency in Contracting and Procurement
- Proactively Recruit and Support M/WBE Businesses with Ongoing Campaigns
- Enact a Series of City Legislative Proposals on M/WBE Procurement
- Push Albany to Enact Reforms to State Contracting Procedures
As the report notes, while there have been many issues with M/WBE services under the Adams administration, including substantial delays in fulfilling payment, there have also been encouraging actions, such as the establishment of a Chief Business Diversity Officer. The report notes this and other ongoing programs which can be continued and strengthened.
Expanding the average value of contracts awarded to M/WBEs is a strategic imperative. These businesses are not just economic engines; they are deeply rooted in their communities. Similarly, a fundamental overhaul of existing structures and responsibilities within city agencies will help to clarify and streamline the means by which M/WBEs can access city contracts and services.
“This weekend, between Black Friday and Small Business Saturday, New Yorkers will spend a lot of money – let’s work to spend it in our communities, seeking out and supporting M/WBEs as we decide, with our dollars, the kind of economy we want to build.” said Public Advocate Williams. “We can build economic power by exercising the economic power we have already fought for and gained.”
The presence and success of M/WBEs bring significant positivity and innovation to the diverse sectors in which they operate, contributing to a more vibrant, equitable, and resilient local economy. They tend to hire locally, creating job opportunities for residents within the neighborhoods they serve, thereby fostering community wealth and reducing unemployment. Their unique perspectives and approaches often lead to more tailored and effective solutions, benefiting the city as a whole.
Read the Public Advocate's full report here.
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