Investing in Minority- and Women-Owned Businesses Will Boost East End's Economy

Historically, Minority- and Women-owned Business Enterprises (MWBEs) have faced many obstacles trying to access capital and opportunities needed to expand and create jobs.

Today, many MWBEs experience challenges as they struggle to keep their companies afloat during a downturn that has left the state’s economy fighting to get back on track. Yet, an essential component to help jumpstart New York’s economic engine is investing in these small businesses to bring more diversity to the marketplace, while producing new jobs and reinvigorating the economy.

Rebuilding our economy means creating opportunities for everyone — not just a select group of people. Inequality in the marketplace hurts minorities and women and our economy as a whole. And while New York has taken great strides in trying to level the playing field in the business world, disparities still persist.

Last year, the New York State Department of Economic Development released a study that found evidence of business discrimination against MWBEs in New York’s private sector, noting that minorities and women were significantly less likely to own their own business as a result of inequities in the marketplace. In addition, minority-owned firms were found less likely to apply for loans for fear they would be denied, and those that did apply were substantially more likely to be denied than other groups, even after accounting for differences in size and credit history.

By not doing all we can to help MWBEs grow, we are losing the essential products and services that those companies can provide, and we allow our state to take a giant step back from the progressive milestones we have accomplished.

In July 1988, former Gov. Mario Cuomo signed into law a measure that created the Office of Minority and Women’s Business Development to promote employment and business opportunities for women and minorities on state contracts. Article 15-A of the New York State Executive Law was enacted to remove the barriers that unfairly hindered many efforts made by MWBEs to obtain state contracts. By making sure those businesses — owned and controlled by more than 50 percent minorities and/or women — were not discriminated against, our state took its first successful step toward helping MWBEs enjoy the same business opportunities as other companies.

Fortunately, this year’s legislative session was one of the most productive in years, with the passage of legislation that allocated federal funds to the New York State Capital Access Program (CAP) and the Bonding Guarantee Assistance Program. CAP will receive approximately $19 million in funding to increase access to credit for small businesses and manufacturers. The Bonding Guarantee Assistance Program will provide $10 million in additional financial backing to guarantee bonds to assist small business and MWBEs with construction projects. Such programs will provide MWBEs with more opportunities to create jobs and spur economic growth. While we have made crucial progress in securing more capital for MWBEs, more needs to be done.

It is time to end discrimination in the marketplace and focus on building our economy and creating jobs, equally and as a whole.