Ahead of Black Friday and Small Business Saturday, New York City Public Advocate Jumaane D. Williams outlined how minority-owned small businesses face persistent structural barriers that restrict access to funding and growth opportunities.
Williams released a report on Tuesday titled Diverse Entrepreneurial Inclusion, which analyzed gaps in city contracting and outlines policy changes aimed at strengthening minority-owned small businesses at a time when many companies have scaled back diversity efforts amid conservative pushback.
Williams said small businesses built by immigrants, women and minority entrepreneurs are a core part of the city's identity and economic makeup, including in neighborhoods across Brooklyn.
“In New York City, we have long strived to celebrate diversity, recognizing it as a strength for not only our culture, but our economy," Williams said in a statement. "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."
The report argued that expanding M/WBE participation in the local economy is both socially responsible and essential to the city’s future, especially as a new administration begins to shape its economic agenda.
Small businesses, especially M/WBEs, are at a major disadvantage when competing for city contracts, which often go to large national corporations. As a result, only about 5% of city contracts are awarded to M/WBEs, and those contracts tend to be relatively low in value, the report said.
The report also points to missed opportunities when emergency waivers bypassed standard procurement processes, including during programs such as migrant services, NYC Solves and NYC Reads.
In several cases, local vendors could have provided better cultural or community-specific services, such as higher quality food in shelters.
As the city goes under new leadership, Williams urged for funding to be restored to the Department of Small Business Services; make contract and procurement systems more efficient; increase transparency across all stages of contracting; proactively recruit and support M/WBEs with ongoing awareness campaigns; advance city legislation to improve M/WBE procurement; and press Albany to reform statewide contracting policies.
Beyond government action, the Public Advocate called on New Yorkers to invest directly in their neighborhoods by seeking out M/WBEs during the holiday shopping weekend.
“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," he said.
