15 National Business Organizations Release Survey On State of Contracting in Public & Private Sectors
FOR IMMEDIATE RELEASE
November 30, 2023
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NEW SURVEY:
15 National Business Organizations Release Survey On State of Contracting in Public & Private Sectors
Survey Reveals Insight into Diverse and Small Suppliers Against a Backdrop of Significant Federal Investments and a Wave of Litigation
Washington, D.C. – Today, Reimagine Main Street, a project of the Public Private Strategies Institute, in partnership with 14 other national business organizations, released a new survey of diverse businesses. The survey explores businesses' experience with corporate and government contracting and their readiness to compete for contracts. This survey comes out against a backdrop of significant Federal investments and a wave of litigation against diverse businesses, business diversity and efforts to increase contracting with diverse-owned and small businesses.
Contracting with the federal government and large corporations presents significant opportunities for diverse-owned and small businesses. The federal government is the largest consumer of goods and services in the world, spending more than $690 billion on contracts in FY 2022. Corporations spend 58% of their revenue on corporate contracts with suppliers.
At the same time, public and private sector investments in infrastructure, clean tech, and the reshoring of advanced manufacturing as a result of the Investing in America agenda are creating industries of the future and new on-shore supply chains. Growth, competitiveness, and resilience of the U.S. economy depend on integrating diverse-owned businesses into these new and emerging supply chains.
The survey focuses on three segments of respondents:
>475 diverse businesses with $1M+ revenues
>1,450 diverse small employers including
>400 diverse businesses that compete in “Investing in America” industries
Survey findings indicate a clear opportunity to increase contracting with diverse and small businesses in the public and private sectors:
Diverse-owned and small businesses have the capacity for contracting: one in three (33%) respondents generates at least $1M in annual revenue and almost half (48%) of the respondents already generate at least 50% of their revenue from contracting.
Nearly a third (29%) of the diverse and small businesses surveyed compete in “Investing in America” industries: they include engineering and construction, energy and environment, manufacturing, industrial technology, and telecommunications and they have capacity for contracts.
Small and diverse businesses eager to learn more about opportunities from the Investing in America agenda: Respondents see promise in the Bipartisan Instructure Law, the Inflation Reduction Act (IRA), and the CHIPS and Science Act.
Diverse businesses say contracting drives their growth strategies: Nearly half (46%) of respondents with $1M+ revenue say that corporate contracting is critical to their growth strategy and one in three respondents says the same about government contracting.
Intentional engagement and unbundling of contracts are imperative to level the playing field for competition so that diverse-owned businesses can contribute to building robust and resilient supply chains of the future, for diverse-owned businesses to increase their contributions.
The survey, conducted by Reimagine Main Street in partnership with 14 national business organizations, reached over 1,400 diverse-owned small and mid-sized employers. The survey analyzed the businesses' experiences with contracting and procurement in the public and private sectors.
The organizations quoted below partnered to field this survey:
Marc Morial, President and CEO of the National Urban League: "Ensuring all communities have access to contracting opportunities is crucial to strengthening our economy. The Investing in America agenda is empowering Black and other minority-owned businesses with opportunities and resources to grow their businesses, strengthening our shared economic prosperity.”
Ying McGuire, President and CEO, National Minority Supplier Development Council: “Minority-owned businesses consistently embody resilience, innovation, and adaptability, offering valuable lessons for the public sector. A thriving economy emerges when everyone has an equal opportunity to contribute, fostering the prosperity of all working families, and fortifying the strength of our economic foundation.”
Rhett Buttle, Founder of Public Private Strategies and President of Public Private Strategies Institute: “Small businesses are the engine of our communities and the Investing in America agenda has opened up countless opportunities for employers to grow their businesses and give their local economies the boost they need. There is a once-in-a-generation opportunity for businesses to access government and corporate contracts that can expand their capital and provide them the resources they need to grow their business and invest in their workers.”
Tammy Halevy, Reimagine Main Street: “When diverse businesses compete for and win contracts, their businesses grow, create jobs, and contribute to thriving MLK Boulevards, Chinatowns, Cesar Chavez Ways and Main Streets. Our survey is an important reminder that diverse businesses with capacity compete in virtually every sector from manufacturing to engineering and construction to professional services. Corporations and the federal government should act to ensure that small and diverse businesses are able to compete on a level playing field.”
As it relates to federal contracting and opportunities under the Investing in American agenda, organization leaders say:
Chiling Tong, President/CEO, National Asian Pacific Islander American Chamber of Commerce & Entrepreneurship (National ACE): “Asian American and Pacific Islander-owned businesses have historically faced many challenges, including access to government and corporate contracts. The opportunities created for the AAPI community in the Investing in America laws are central to our work and mission, and the federal government and corporations must continue their efforts to equip Asian Americans and Pacific Islanders with contracts that advance the growth of our communities and economy at large.”
Chris James, CEO, National Center for American Indian Enterprise Development: "The Investing in America laws have created new opportunities for Indigenous and Native entrepreneurs to fully participate in a strong and healthy economy, and we continue to encourage Native American business owners to seek contracts that will further grow their companies. This survey shows a clear path forward to ensuring diverse-owned businesses have access to contracting."
Ron Busby, President and CEO, the U.S. Black Chambers Inc: "Supporting Black businesses remains as important as ever. The past decade has seen an explosion of Black entrepreneurship and the positive effects of this are tangible for Black families across the nation. We work alongside ByBlack and other organizations to introduce Black-owned businesses to the Investing in America agenda and create avenues by which Black businesses can gain greater access to contracts and other financial instruments that lead to success.”
Ramiro Cavazos, President and CEO, United States Hispanic Chamber of Commerce: "America’s Hispanic businesses are thriving, and, in turn, the entire economy is thriving too. Our Latino entrepreneurs and Spanish-English speaking business communities are creating jobs, growing new companies and expanding wealth opportunities in the urban core of many of our major cities and rural centers. The Investing in America laws are opening new doors for Latinos to continue to break down existing barriers to provide more contracting and help more businesses participate in achieving the American dream."
Angela Dingle, CEO, Women Impacting Public Policy: “Women entrepreneurs are having a growing impact on our nation’s public policy, and forging business alliances across dynamic sectors of the economy. This survey shows the wide-ranging impact of the Investing in America laws’ commitment to ensuring women can expand and thrive in the economy. Our economy and our entire nation are made more prosperous through greater involvement of women entrepreneurs.”
Jen Earle, CEO, National Association of Women Business Owners: “There is a real opportunity for women entrepreneurs to tap into government and corporate contracts and build wealth. We are encouraged by the Investing in America agenda which is ensuring that more small businesses, particularly women-owned small businesses, have access to government and federal contracts that will level the playing field and create a stronger future.”
VR Small, CEO, Veteran Women’s Enterprise Center: “Women veterans have made enormous sacrifices for our country and they’re bringing invaluable contributions to the business community. As this survey demonstrates, the Investing in America laws open new economic opportunities for women veterans and we encourage them to continue competing for contracts.”
As it relates to corporate contracting and corporate supplier programs, organization leaders say:
Jill Houghton, CEO, Disability:IN: “Entrepreneurs with disabilities have contributed so much to our economy and are crucial workforce participants for businesses looking to scale and grow. The Investing in America laws have empowered Americans with disabilities with new tools to participate in the free market, encouraging them to benefit from a prosperous economy and spurring businesses to create more accessible workplaces.”
Steve Grossman, CEO, Initiative for a Competitive Inner City: “In urban cores across America, diverse-owned businesses are ready for new contracting opportunities. Many of these businesses are already contracting successfully and have the capacity to expand, generating well-paying jobs, income, and wealth in our under-resourced communities. By breaking down the barriers that have made it harder for diverse-owned businesses to contract, we can help close the racial wealth gap and move forward in our mission to eliminate concentrated poverty in the United States.”
Justin Nelson, Co-Founder & President, National LGBT Chamber of Commerce: "LGBTQ+ businesses represent a growing segment of businesses and there is so much potential to continue bringing unique voices to the innovation table. The Investing in America laws are cutting government red tape and opening access to business contacts for entrepreneurial Americans who want to start a business. We must continue to connect LGBTQ+ businesses to government and corporate contracting opportunities.”
Matthew Pavelek, CEO, National Veteran-Owned Business Association: "Our veterans have served our country with honor and patriotism, and as business owners, they lead their communities with the same distinction. This survey shows that veteran entrepreneurs have the capacity and ability to take advantage of contracts connected to the Investing in America laws, while also showing that more must be done to get contracts in the hands of these small business owners.”
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