EDITORIAL  
 
Small businesses need a break
By: Pauline Thomas
Minnesota Spokesman-Recorder
Originally posted 3/3/2004 

City can do much to help them survive and grow


We understand that the mayor�s office in Minneapolis 
is aggressively moving forward to select a new director 
of the Civil Rights Department. The Collaborative commends 
the mayor and his staff for taking a deliberate and thoughtful 
ap-proach to filling this critical position. 

The director position protects the civil rights of 13 distinct 
categories into which Minneapolis citizens fall. Every 
citizen falls into one or more of these categories. 

One among many of the crucial responsibilities of the director 
is ensuring that there is broad inclusion of businesses in 
the City�s purchasing and contracting opportunities. Creating 
diversity in its business opportunities should be the ongoing 
objective of all organizations, whether government, 
for-profit, nonprofit or philanthropic. 

Inclusion has to encompass not only women and minority businesses, 
but small and micro-sized women and minority businesses 
as well. These businesses traditionally have been disadvantaged 
in the marketplace not only due to their ethnic and gender status, 
but also because of their size. The combination of those two 
factors makes it extremely difficult for these businesses to 
survive, let alone grow into successful medium- and large-size businesses. 

When larger businesses owned by women and persons of color 
receive contracting opportunities to the exclusion of smaller 
women and minority businesses, the small businesses, 
the communities in which they operate, and the City as a whole suffer. 

Small businesses account for a disproportionately large share 
of new jobs. In the African American community, contracts 
received by minority-owned businesses can be critical to the 
hiring and training of employees of color. Data shows that 
minority-owned businesses tend to hire workers of color 
at a higher rate than majority-owned businesses. 

It seems to make good common sense that small minority 
businesses, which by the way are the vast majority of 
businesses of that size, have the maximum opportunity 
to gain their share of business allocated by government agencies. 

Although the City of Minneapolis spends $40 to $50 million 
a year in contracting with businesses, the data we have viewed 
from the City show that businesses owned by persons of color 
constitute less than three percent of the total dollars. 
When one looks at the percentage of minority businesses 
receiving City contracts, the reported number is less 
than one percent. 

In addition to the abysmally low number of contracts 
going to minority firms, the figures demonstrate that 
the relatively larger minority firms are receiving a 
disproportionate share of the City�s business. This occurs 
in spite of the fact that the City has had a 
�Small Underutilized Business Program� in place since 1999.
http://www.spokesman-recorder.com/News/Article/Article.asp?NewsID=39648&sID=16
http://www.spokesman-recorder.com
Posted by Shawn Lewis, Field Neighborhood


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