Several changes at the federal level under the Trump Administration are causing headaches and uncertainty, and increasing the business risk for minority-owned businesses.
For example, the U.S. Department of Transportation is circulating a rule change eliminating the disadvantaged business certification for minority-owned businesses. This change at the federal level makes it clear that prime contractors do not have to seek out minority-owned companies to partner with, even for a small percentage of the contract amount.
Among other things, what is missing from this conversation is why these programs were put in place in the first place and what needs to be done about them.
From my perspective and significant business experience, I can say that minority spend requirements were created to give minority-owned businesses opportunities they were not getting through the regular procurement process.
If a government agency gives out $1 billion worth of contracts, everyone should have a fair opportunity to go after those contracts. Unfortunately, that is not often the case for minority-owned businesses, and that is why these programs were created.
Interestingly, the Trump Administration is taking all of these steps to eliminate Diversity, Equity, and Inclusion (DEI) programs, including minority-participation requirements, under the guise of discrimination, given that these programs were developed to give minority-owned businesses a fair chance. Not a handout and not a guarantee, but a legitimate chance at a government contract.
Simply, an opportunity to do business. Even in scenarios with cumbersome insurance requirements and competition from large incumbents for prime contracts.
Discrimination, racism, and complex procurement requirements have kept many minority-owned businesses from reaching their full potential.
It is time for foundations, corporations, business associations, and non-profit organizations interested in economic development to level the playing field and step up.
With business opportunities being lost at the federal level, it is a good time to consider the help that minority-owned businesses really need.
It's simple. The solution is contracts. Profitable contracts.
Instead of spending time creating another program, stakeholders at corporations, business associations, and nonprofit organizations should post a business opportunity, solicit proposals from potential vendors, and award the contract to a qualified minority-owned business.
Pick a minority-owned vendor. Better yet, choose ten minority-owned vendors. And pay them what you paid the previous vendor for the same work.
That would bring economic mobility for minority-owned business owners. Sometimes the solutions to complex problems are right in front of your face.
Teresa M. Lundy is the principal and founder of TML Communications, the award-winning strategic public relations, crisis communications, and community engagement firm serving corporations, nonprofit organizations, and government agencies. Follow Teresa on Twitter @TeresaMLundy.
