New York City is making big strides in supporting small businesses owned by minorities and women. The city has set some ambitious goals to award billions in contracts to these businesses, known as M/WBEs. These goals are part of a larger effort to create more opportunities for these entrepreneurs, who have often faced barriers in accessing city contracts.

To help reach these goals, the city has introduced some new roles and strategies. For example, a new chief business diversity officer was created to oversee the process. Additionally, agencies were directed to use a special contracting method that allows for larger purchases from M/WBEs. This method has already led to a record-breaking amount of contracts awarded to these businesses.

The city's efforts have paid off. In the last fiscal year, city agencies awarded a total of $6. 9 billion in contracts to M/WBEs. This is the third year in a row that the city has awarded more than $6 billion in contracts to these businesses. The city is also on track to meet its goal of awarding $25 billion in contracts to M/WBEs by the end of the next fiscal year, six months ahead of schedule.

But the city's efforts don't stop there. New laws have been passed to enhance the tools available to support M/WBEs. For example, the small purchase cap for M/WBEs was raised from $1 million to $1. 5 million. This has allowed the city to award more contracts to these businesses using this method. Additionally, a new mentorship program will soon be fully operational, providing M/WBEs with access to capital, surety bonding, and prime construction contracts.

The city's commitment to equity in government contracting has led to some impressive results. Since January 2022, the city's M/WBE program has been responsible for more than $24 billion in contracts. These contracts represent employment opportunities and access to health care, homeownership, better educational outcomes, and sustainable local communities. With the passage of New York state M/WBE laws and public policy, communities of color now have a permanent seat at the procurement table.

MINORITY OWNED BUSINESSES

New York's Big Win for Small Businesses: How the City is Boosting Diversity in Contracts

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