NYC awarded less than 4% of contracts to minority- and women-owned business Last year was a slow year for MWBEs, and Mayor Eric Adams says he wants to grow the program.

When Gov. Kathy Hochul announced the state had reached its 30% goal for minority- and women-owned business enterprises last year, Albany had a lot to be pleased about. But that news also came as a reminder that New York City has a lot of catching up to do. In fiscal year 2021, New York City awarded only 3.8% of city contract money to MWBE firms, and 84% of the city’s MWBEs “do not have access to city spending,” according to the city comptroller’s office. Although New York City’s certified MWBE firms have tripled since 2015 – from 4,000 to 11,000 – only about 2,000 firms have received contracts from the city.

NYC is and has been perpetually behind in promises to its diverse community of MWBE’s and 2021 was no exception. Thanks to City & State for calling this out. VeraCloud works closely with companies to implement the Program both in advance of upcoming contracting needs, and in real-time during bid solicitation windows. We seek to ensure that every diverse and/or local vendor capable of participating is identified, recruited and engaged, directly connecting interested vendors to the contracting process.

A Model for Accelerating Growth of Minority-Owned Businesses in New York City

Minority owned business strengthen our economy. From the Gotham Gazette comes news of NYC leveraging success seen elsewhere to benefit diverse communities in New York.

“Under the model, the city would coordinate a broad range of players in the business-growth ecosystem: the five borough-based chambers of commerce, community development financial institutions (CDFIs), the city government’s Department of Small Business Services, public libraries, and others. CUF wants Mayor Adams to leverage his ties with business leaders to establish a similar network of major companies to participate in the small business supply chain.”

— Gotham Gazette

COVID has created a low tide in America...

In his annual State of the State address , NY Governor Andrew Cuomo focused on eradicating the COVID-19 epidemic, and stressed that the federal government must do more help to heal a devastated economy and address systemic inequality.

 “COVID created low tide in America, and the ugliness that lurked below the surface was exposed and became visible for all to see… the racial divisions, the religious tensions, the government incompetence, the health care disparities, the social injustice and the danger of hateful leadership.”   “The problems don’t just go away. They mount.”

President Biden has also leveraged the low tide analogy to speak about how the economic contraction brought on by COVID has revealed the devastation that has disproportionately ravaged small diverse businesses.  

In particular, these businesses lack the critical banking relationships necessary to access the Federal economic relief secured to help preserve their businesses.  The reason is simple yet stark, small diverse businesses generally have bank accounts, but rarely have bankers. 

The Banking industry can remedy this condition by intentionally engaging diverse businesses by leveraging the same branches that have failed to reach small diverse businesses with COVID relief programs. 

Bankers can apply intentionality to how they secure vendors to satisfy their operational requirements.  In short, bankers can leverage the community-based “operational footprints” of their branches to target, engage and preserve the small diverse businesses that make up, support and enrich the very communities each branch serves.

As McKinsey recently noted: “The time has come”

Today’s crises, like the deaths that fuel the calls for racial equity, are not new; however, the responses to the crises are unprecedented. People in more than 4,200 cities and towns around the world have staged protests.

Fifteen to 25-plus million people in America have participated in them, and not just people from Black communities.

Over half of protestors (54 percent) are white, marking a notable difference from racial protests of the past.

By contrast, the US civil rights movement had hundreds of thousands of protesters. In addition, the largest group taking to the streets represents America’s newest generations, with the majority of protesters under the age of 35.

The statistics suggest that we are in the midst of the largest equity and justice movement of our time. It’s big. It’s powerful. And it will shape the future for consumer-centric businesses.

VeraCloud has successfully leveraged its diversity access and inclusion programs across private industries and throughout Government, making it easier to deliver on this kind of intentionality.  VeraCloud brings transparency and clarity into diverse vendor marketplaces, facilitates access and connection for clients to easily accelerate and advance diversity inclusion initiatives across the board. 

VeraCloud works with existing procurement infrastructure, technology and personnel achieving dramatic results without disrupting existing procedures and protocols.

Today’s business, cultural, and political environment requires that employers make Diversity and Inclusion a priority. Big business and government need to evolve beyond legislated compliance and the diversity requirements attached to public projects.

COVID has further exposed the need to adopt a community-forward intentionality to help save small businesses and combat a pervasive inequity in economic opportunity that has been laid bare by the economic fallout from the Pandemic.

MA Governor Launches Plan To Expand State Contract Opportunities For Minority-Owned Businesses

FROM WGBH:

Massachusetts Gov. Charlie Baker proposed sweeping changes to the state’s program for contracting with minority-owned businesses, including provisions to directly address criticisms raised in a year-long investigative series by the GBH News Center for Investigative Reporting.

GBH News reported this year that the value of state contracts won by minority-owned businesses has declined by more that 24% over the past two decades, and that the state was padding its results by taking credit for payments that non-minority state contractors made to minority-owned businesses and nonprofits that had no direct connection to a state project.

Baker’s legislative proposal, unveiled Monday evening in advance of the election, essentially confirms that the state’s Supplier Diversity Office has not had enough independent authority to ensure that other state agencies are making minority contracting a priority.

Baker’s office announced that his bill would elevate the state Supplier Diversity Office into a stand-alone agency “with tools and resources to ensure accountability and compliance with diversity goals, oversee agency diversity spending, and audit and review spending data.” The new agency would have a “Supplier Diversity Compliance Unit … which will systematically audit and review direct and indirect spending data to ensure compliance and accuracy.” GBH News reported in September that state agency documentation of minority businesses contracts was riddled with errors and inconsistencies.

Baker also announced that in the future, the state’s annual supplier diversity report will separate state contracts with minority businesses from payments made to minority businesses by non-minority contractors. The reports will also itemize minority businesses spending by race and ethnicity. GBH News had requested this data from the state but was told it was not being tracked.

The state will also boost the advantage given to bidders on state contracts to those that include strong minority business participation in their proposals.

“In launching these new initiatives, we have worked closely with leaders in the minority business community, Black and Latino Caucus, and Black Advisory Commission and Latino Advisory Commission,” Baker said in a statement Monday. “We look forward to continuing our work with these partners to strengthen the state contracting process with greater diversity, transparency and accountability.”

Deborah Enos, chair of the Black Advisory Commission, said in the same statement, “Expanding opportunities for minority-owned businesses working with state government is a crucial way that we can expand economic opportunity for people of color, and I am glad to see the Baker-Polito Administration take further steps to advance that goal.”

Segun Idowu, executive director of the Black Economic Council of Massachusetts, said Baker’s announcement was “all the things that we called for. The governor has literally done everything that we presented and requested that his office make happen in order to make some kind of headway on this issue.”

In September, Idowu had demanded a meeting with Baker in response to the GBH News series and outlined many of the reforms included in Baker’s announcement.

But Idowu pointed out that Baker’s new plan “is roughly the beginning of making important updates.” The legislature will still need to approve creation of the new agency, and other provisions will take time to implement.

“We're happy that that the governor moved forward with all of this,” Idowu said. “But, you know … what matters are results. And so that's the next step, is making sure that this actually amounts to something positive for our communities.”

The New York State Association of Counties has partnered with VeraCloud to help diverse businesses during COVID-19

The New York State Association of Counties (NYSAC) represents New York counties before Federal, State and Local officials on matters of county governments. In response to COVID-19, NYSAC is pioneering an initiative that will help Counties leverage their existing recurring resources, (annual procurement spending) to support and financially engage their small, local and diverse businesses (MWBEs) supporting and helping sustain the communities they serve.   By focusing economic opportunity and shifting the resulting economic benefit to the marginalized businesses and their host communities, this NYSAC-led initiative will enable Counties to proactively jumpstart small local and diverse businesses and facilitate a strong post COVID-19 recovery. 
 
NYSAC has partnered with VeraCloud Technologies to bring this capability to member Counties. VeraCloud enables Counties to extend the reach and benefit of their procurement opportunities and focus procurement spending on the small local and diverse MWBE businesses within their jurisdictions.  This shift of economic opportunity and benefit inspires, activates, and sustains MWBE's and small local business with annual County opportunity/spending, establishing many "first time” public contracts with their small local and diverse businesses. This initiative supports County business, enables new hiring within small local and MWBE businesses, supports diverse and local supply chains, and returns tax dollars to the communities from which they are collected helping revitalize neighborhoods, support families and create the much needed jobs critical to support recoveries within communities most impacted by COVID-19. 
 
The procurement dollars focused through the NYSAC/VeraCloud initiative ultimately have a compounding effect helping preserve and rejuvenate small local diverse businesses, the communities in which they are located, and the diverse and local people they employ and sustain.  In this COVID-19 recovery environment this is a high-impact grass roots initiative to help Counties focus their spending into small local diverse businesses,  driving sustainable economic benefit and a much needed social impact to the communities and constituents most negatively affected by this pandemic.

Join us Fri, Jun 12, 2020 10:00 AM - 11:00 AM EDT to learn more. Register here: https://register.gotowebinar.com/register/2681813721211349776

We are breaking down barriers for aspiring entrepreneurs and providing opportunities to ensure the growth and success of minority and women owned businesses.

Governor Cuomo today signed into law S.6575/A.8414, which reauthorizes the Minority and Women Owned Business Enterprises (MWBE) program for five more years to ensure ongoing and meaningful participation of MWBEs in contracted State projects. The reauthorization of the law includes enhancements that will enable even more MWBEs to participate in and benefit from the program.       

"The extension and expansion of New York's nation-leading MWBE program will help ensure our economy is reflective of our values and of our diverse talent pool," Governor Cuomo said. "Diversity is New York's greatest asset, and by signing this measure into law we will empower more women and people of color to participate in State contracts and continue our aggressive program to make contracting even more inclusive."   

"We are breaking down barriers for aspiring entrepreneurs and providing opportunities to ensure the growth and success of minority and women owned businesses," said Lieutenant Governor Kathy Hochul. "The renewal and expansion of our robust MWBE program advances New York's nation-leading MWBE goals as part of our overall efforts to promote diversity. We are committed to encouraging and supporting minority and women owned businesses across the state, creating jobs and strengthening the economy."

New York State Assembly Passes Legislation to Reform New York State's MWBE Program

Strong support for New York State’s Diverse businesses and the communities they support:

“With New York’s MWBE program set to expire this year, the New York State Assembly Majority is committed to continuing to support minority- and women-owned business enterprises here in our great state," said Speaker Heastie. "New York has always worked toward leveling the playing field for underrepresented communities. Minority and women entrepreneurs are critical generators of jobs and innovation in our communities, and should be able to access the same opportunities as non-minority owned businesses."

"Expanding opportunities for MWBEs will continue to be a priority in New York State," said Assemblymember Titus. "Socially and economically disadvantaged businesses like many owned and operated by minorities and women have been continuously overlooked. Supporting these businesses means investing in our economy, communities and equal opportunity for all New Yorkers."

"The MWBE program strengthens our economy while ensuring that minority and women owned businesses are given the opportunity to partake in New York’s procurement contracts," said Assemblymember Bichotte. "By increasing the personal net worth threshold to $15 million, implementing a streamlined certification process, and increasing the discretionary spending threshold to $500,000, the participation level of MWBEs will increase substantially with a direct positive economic impact."

MWBE banks team up with NYC comptroller to win more business

Representatives of minority- and women-owned small banks from around the country are teaming up to expand business opportunities in New York City. Politicians and firm representatives said they hope to show other cities and states how they can incorporate a more diverse business model into their investments.

Attending MWBE University, last Thursday’s session focused on how small minority depository institutions can become a New York City-designated bank and receive tax breaks for contributing to the city’s development efforts.

MWBE University is a program developed by New York City Comptroller Scott Stringer to aid businesses owned and operated by women and people of color.

"We believe that minority banks can and should play a pivotal role in the economic success in the neighborhoods of our city,” Stringer said at the gathering held at the comptroller’s office at the David M. Dinkins Municipal Building in Manhattan. “But right now there’s a big barrier between minority banks that could do business with the city and the ones that aredoing business with the city.”

2018 Annual Report: NYC has increased its M/WBE spending, but continues to fall short on M/WBE utilization

NYC’s Annual report on Diversity, Access, and Inclusion of Minority- and women-owned business enterprises (M/WBEs) in the City’s public economy is out and the the City continues to lag in execution on its mandated goals.

Minority- and women-owned business enterprises are critical to the country’s job market, employing millions of Americans and contributing more than $1 billion to the national economy each day.

Nevertheless, these businesses continue to confront disparities that deny them the opportunity to compete on a level playing field. In New York City, people of color and women account for 84 percent of the population and 64 percent of business owners.

The City’s recently published disparity study showed that while more M/WBEs are available to contract with the City, there was persistent underutilization of these firms in the last six years of City contracting.

Toward a Fair & Equitable Massachusetts Economy: Practical Steps for a Diverse & Inclusive Entrepreneurial Community.

Developing policies, practices, and processes that increase diverse and equitable business participation in the economic development of the Commonwealth was front and center this past week at The Sustainable Business Network of Massachusetts 29th Annual Conference: Toward a Fair & Equitable Massachusetts Economy: Practical Steps for a Diverse & Inclusive Entrepreneurial Community.

The room was full of dedicated and passionate business and community leaders representing nonprofits, businesses, and government agencies who are working every day to build a sustainable and just economy in Massachusetts.  Of special focus this year: mobilizing community assets to drive awareness & inclusion, enhance collaboration, and match capabilities of ready, willing, and able diverse businesses with relevant and timely public sector opportunities.

Learn more about SBN’s efforts at http://sbnmass.org/.

VeraCloud recognized by The Social Innovations Journal for democratizing access to social and economic opportunity.

The Social Innovations Journal has named VeraCloud “one of Boston’s most innovative solutions to society’s biggest problems.” We are humbled to be recognized alongside some of Boston’s, New England’s, and our country’s most committed advocates for democratized access to social and economic opportunity.

The Journal chronicles social innovations and enterprises addressing the nation’s most challenging issues surrounding social policy, leadership, human capital, and systems. In collaboration with government, philanthropy, nonprofits and universities, the Journal bridges formal research and real-life experience.

The Journal has joined forces with the:
•    Boston Mayor's Office of New Urban Mechanics
•    Social Innovation Forum
•    Harvard Kennedy School, Ash Center for Democratic Governance and Innovation
•    MassChallenge
•    City Awake
•    Social Venture Partners Boston
•    GreenLight Fund Boston
•    Amplified Impact
to convene groundbreaking social innovators, social enterprises, and public - private partnerships at a December 5th symposium that will showcase Boston’s most innovative solutions to solve society’s toughest problems. 

VeraCloud's solution to jump-start Diversity is a powerful tool for incentivizing and aligning prime contractors and other hiring entities to scale their use of diverse businesses (MWBE’s, DBE’s, & VBE’s) in the US public sector contracting market.

VeraCloud addresses systemic market failures by enabling efficiency and best-in-class diversity practices, while delivering a superior experience. VeraCloud’s solution can be used to build capacity in areas of need; enables focused efforts for inclusion; and enables public sector contracting market participants to discover, connect, and collaborate more efficiently and effectively.

Please join us and other innovators in shaping and expanding the 2018 agenda for Boston’s Social Innovation Ecosystem on December 5, 2017:  1:45 – 5:00 at the BOSTON HARBOR HOTEL: 70 Rowes Wharf, Boston, MA 02110.  

Please Register HERE to attend.
 

Equal Pay Day: VeraCloud supports all who work to dismantle systemic inequalities in the US economy.

Legislation + Implementation: The best intentions of the most progressive public servants REQUIRE collaboration with the Private Sector.

As part of his great vision for a New Frontier, John F. Kennedy signed The Equal Pay Act of 1963, a US labor law aimed at abolishing gender-based wage disparity.  Half a century later great disparities still exist, and the more diverse the population, the greater the inequalities.

According to the Voter Participation Center:

54 years after the Equal Pay Act was signed into law, women are still fighting to earn the same earnings as men for equal work. According to the most recent data on 2016 available from the U.S. Census Bureau, women on average make 80 cents for every dollar a man makes.

Earning disparities are even greater for unmarried women, who have seen a steady three-year decline on their earnings in comparison to married men. Unmarried women now earn only 59 cents to every dollar a married man earns, part of an ever-consistent pattern of unmarried women being left behind, even in a growing and improving economy.

In short, there have been no real substantive gains for women. In fact, equal wages is seeing a backwards trend while married men continue to see their earning power grow.

This is not just a US problem, but a global one: In 2006 The World Economic Forum introduced theGlobal Gender Gap Index to capture and track the magnitude of gender-based disparities over time. At #45 globally, the US has a lot of catching up to do.

At VeraCloud, we partner with those also driven to dismantle systemic inequalities, change lives, transform communities, and positively impact generations. 

We have built our platform to better equip the private and public sectors to deliver on progressive policies, and to substantively impact the bedrock issues of diversity, access, and inclusion that continue to threaten the advancement of multiple diverse communities throughout the United States. 

Today as we recognize these issues, we join in with leaders like Sheryl Sandberg who work with great purpose and intent to resolve these systemic inequalities at whatever scale is needed.  From Forbes:

Today is Equal Pay Day. #20PercentCounts highlights that women are, on average, paid 20% less than men in the U.S.; that statistic is worse for black women (37% less) and Hispanic women (46% less). "Equal pay is essential to the goal of gender equality," says Sheryl Sandberg, one of America's few self-made women billionaires, in a statement on the launch. "This issue speaks to how we value women’s labor, knowledge, time, training, and so much more. In short, it’s about women’s worth. There’s nothing more fundamental than that."