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State of MBE's

The State of MBE Programs on the local, state, and federal levels

(BALTIMORE – January 21, 2009) – The wise old sage says that success occurs when preparation meets opportunity. So, here goes.

A perpetual question that lingers in the minds of many business owners we meet each month at our HARAMBEE Dinner Club is whether or not Minority Business Enterprise programs work.

Here in the City of Baltimore, thanks to Mayor Martin O’Malley, we have a grand goal that states that 35% of all City contracts are to go to minority businesses. However, at the end of the day, many business owners – black business owners – conclude that it is just that: a goal.

In the State of Maryland where O’Malley is now our Governor, the long-time goal is 25%. In actuality, this goal has historically never been met. While some agencies are doing better than ever before in attempting to meet this goal, other agencies lag behind.

One should know that getting certified as an MBE is typically an arduous process where the business owner has to open his or her books, undergo scrutiny, and essentially prove that they are a minority-owned business. Never mind the countless businesses that are fronts for whites or the ones where white women actually are fronting for their husbands.

On many occasions, I have heard business owners ask: “What’s the benefit of being certified?”

My question has always been: Why do I have to prove I am black? White people do not have to prove they are white?

All of this to say: Now that we have a black president, and by no means to I pretend to be the voice for black business – nor do I pretend to fully comprehend the jargon or the intent of the certification process, maybe President Obama can put some light on this issue.

One should know that there is a federal program for MBE’s as well: the 8A program that was designed by brilliant minds like the late Congressman Parren J. Mitchell.

But, this is what I do know: When politicos are in trouble and at their last wit, they forego all of the regulations and call upon whomever can get the job done.

A state employee, for instance, called me once and said, ‘Doni, we need you to do x-y-z.’ They needed some media exposure, in essence. And, for the uninitiated, that is our forte at DMGlobal. Because of the personal relationship, I said, ‘No problem.’

I later asked that same employee if he knew of any marketing opportunities. He responded, “Go to the State’s website.” I replied, “I didn’t send you to a website when you needed help.”

My thought is this: Do business with small black-owned firms like mine because we can do the job. End of story. However, there are a plethora of excuses I have heard over the years: Black businesses are just too small to do the job and need to merge with other small firms because of bundling. Black businesses don’t have the bonding necessary to ensure that a major job is completed. Or, the all-time favorite excuse emerges: black businesses don’t have the capacity.

What the Sam Hill?

Each day, an uncounted number of black businesses do the job and stay in business, even in the midst of America’s worst economy ever. These black businesses pay taxes, hire people that nobody else would hire, and help thousands put food on their tables. Yet, these same small black-owned businesses quite often get overlooked by procurement officers who have traditionally sent business to their friends.

I have concluded that municipalities only send business to black business owners when to do so means the municipality can count such contracts in their yearly or quarterly reports to posture as if they actually are working to help small businesses. And that is simply a farce.

When is this hogwash going to end?

Over the years, I have met thousands of business owners who simply wanted an opportunity to do some work and get paid – in a timely fashion.

The challenge, quite often, is that these business owners have to go through a municipal employee who gets a paycheck every two weeks and could care less whether or not a business owner scores a nice, hefty opportunity to feed his – or her people.

I have found that the same businesses get the contracts. Is it “payola”? I don’t know. Is it that business only goes to campaign contributors? I don’t know. I do know that whenever a politician comes on our weekly radio show on Radio One, I ask them if they are going to help create some new black millionaires. Of course, they say ‘yes.’ However, at the end of the day, it is just rhetoric.

I should note that while I am a novice at attempting to outline the challenges faced by small black business owners in Maryland, people like Wayne Frazier and Attorney Arnold Jolivet are much better at outlining the issues and effecting change.

One item that both men address on a regular is whether entities getting state dollars ought be bound to uphold the state’s goal of 25% MBE participation.

With President Obama in the White House, my prayer is that something will change. Again, I say: do business where business is good. Don’t pontificate – especially around election time. Do the right thing all of the time and send business to the hard-working and capable black businesses who do the damn thing when nobody else does. As my best friend says, actions speak louder than words.

Even more, ask DC's Marion Barry how it is done. After all, if it were not for him, there would be no BET nor Prince George's County - including the Woodmoor community, well-noted as the richest black jurisdiction in the nation.

Tags: business, political economy