Policy Initiatives: Matters of Diversity and Inclusion National 8(a) Association 2016 Winter Conference Agenda February 10, 2016 1 Diversity and Inclusion National 8(a) Association Synergies The Changing National Landscape State of Minority Business Enterprises (MBEs) High Growth Rates Contributions to the U.S. Economy Ongoing Disparities MBDA Access Action Advocacy Next Steps Explore Transitioning 8(a) Graduates Explore Leveraging Strategic Relationships 2 National 8(a) Association Synergies Common Intersect of Businesses Served Advocate 8(a) Program Essential Business Development Instrument Educating Firms on Federal Contracting Promoting 8(a) Firms to Federal Agencies & Prime Contractors 3 Population Demographic Changes Minority population is growing faster than nonminorities Graph excerpts from “Diversity Explosion” by William H. Frey, Senior Fellow, The Brookings Institution, Metropolitan Policy Program 4 Population Demographic Changes Notable Characteristics Minorities are Younger - Anticipate high levels of workforce entry Non-minorities are aging at faster rates - Anticipate high levels of retirement Graph excerpts from “Diversity Explosion” by William H. Frey, Senior Fellow, The Brookings Institution, Metropolitan Policy Program 5 Minority Business Enterprises Growth Trend The number of minority firms more than doubled Minority Firms 9.0 8.0 Number in Millions 8.0 7.0 5.8 6.0 5.0 4.0 3.9 3.0 2.0 1.0 0.0 2002 2007 Source: U.S. Census Bureau, 2002 Survey of Business Owners, September 2006 U.S. Census Bureau, 2007 Survey of Business Owners, June 2010 U.S. Census Bureau, 2012 Survey of Business Owners, December 2015 2012 6 Minority Business Enterprises Economic Contribution Trend Economic activity of minority firms doubled Minority Firms Gross Receipts In Trillions of Dollars 1.6 1.4 1.4 1.2 1.0 1.0 0.8 0.7 0.6 0.4 0.2 0.0 1 2002 2 2007 3 2012 Source: U.S. Census Bureau, 2002 Survey of Business Owners, September 2006 U.S. Census Bureau, 2007 Survey of Business Owners, June 2010 U.S. Census Bureau, 2012 Survey of Business Owners, December 2015 7 Minority Business Enterprises Employment Contribution Trend Minority Firms Number of Paid Employees In Millions 8.0 7.2 7.0 5.8 6.0 5.0 4.7 4.0 3.0 2.0 1.0 0.0 2002 2007 2012 Source: U.S. Census Bureau, 2002 Survey of Business Owners, September 2006 U.S. Census Bureau, 2007 Survey of Business Owners, June 2010 U.S. Census Bureau, 2012 Survey of Business Owners, December 2015 8 Minority Business Enterprises Comparison of Growth Rates 2007-2012 Growth Rate Comparison 45% 40% 35% 38% 35% 30% 23% 25% 20% Minority 15% Non-Minority 10% 7% 5% 0% -5% -4% -10% Gross Receipts Employees -6% Number of Firms Source: U.S. Census Bureau, 2012 Survey of Business Owners, December 2015 9 Minority Business Enterprises – Comparison by Gross Receipts Combined Gross Receipts 12.0 9.8 10.0 In Trillions of Dollars 10.5 8.0 8.0 Minority 6.0 Non-Minority 4.0 2.0 0.7 1.0 1.4 0.0 2002 2007 2012 Source: U.S. Census Bureau, 2002 Survey of Business Owners, September 2006 U.S. Census Bureau, 2007 Survey of Business Owners, June 2010 U.S. Census Bureau, 2012 Survey of Business Owners, December 2015 10 Minority Business Enterprises Comparison of Average Receipts Minority firms continue to lag in size when compared to non-minority firms Average Gross Receipts In Thousands of Dollars 600 552 488 500 439 400 Minority 300 Non-Minority 200 178 167 174 100 0 1 2002 2 2007 3 2012 Source: U.S. Census Bureau, 2002 Survey of Business Owners, September 2006 U.S. Census Bureau, 2007 Survey of Business Owners, June 2010 U.S. Census Bureau, 2012 Survey of Business Owners, December 2015 11 Comparison of Average Receipts by Employment Firms Average Gross Receipts - Firms with Employees In Thousands of Dollars 2.5 2.3 2.1 2.0 1.6 1.5 1.3 Minority 1.1 1.0 Non-Minority 0.9 0.5 0.0 2002 2007 2012 Source: U.S. Census Bureau, 2002 Survey of Business Owners, September 2006 U.S. Census Bureau, 2007 Survey of Business Owners, June 2010 U.S. Census Bureau, 2012 Survey of Business Owners, December 2015 12 Comparison of Employment Share Minority Firms Non-Minority Firms 11% Number of firms with paid employees 22% 0.9M 4.2M 7.0M 89% 14.8M Number of firms without paid employees 78% Source: U.S. Census Bureau, 2012 Survey of Business Owners, December 2015 13 ABOUT MBDA The Minority Business Development Agency (MBDA) is an agency of the U.S. Department of Commerce working on behalf of the nation’s 8 million minorityowned firms in support of their growth and global competitiveness. Strategic Focus Business Development Maximize job creation and global competitiveness for MBEs through increased access to capital, contracts and markets Education, Research and Information Produce and promote information for and about MBEs Policy, Advocacy and Outreach Create informed policy agendas to advocate for and to conduct outreach on behalf of MBEs Operational Excellence Advance agency services by being responsive and nimble, rapidly adapting to the changes in the MBE landscape 14 MBDA B USINESS C ENTERS 15 Services: Access to Contracts • Identification of procurement opportunities • Solicitation analysis • Bid and proposal preparation • Post-award contract administration • Business certifications and registration assistance • Targeted teaming arrangements and joint ventures 16 Services: Access to Markets • First-of-its-kind MBDA Federal Procurement Center • Market research, feasibility studies, and promotion • Sales consulting and forecasting • Business-to-Business (B2B) matchmaking forums • International market analysis and trade assistance 17 Services: Access to Capital • Identify and broker financing opportunities • Capital identification based on industry specialization • Financial management and planning • Financing forums and networking events • Identification and closure of mergers and acquisitions 18 Expanding Services: Specialty Expertise in the Network —Advanced manufacturing initiatives —Capital initiatives for traditional and alternative financing —Exports and business linkages in emerging economies —Technology transfer, labs to market and innovation —Youth entrepreneurship 19 MBDA Efforts to Support 8(a) New to 8(a) • Introduce & Promote 8(a) Program • Application Assistance & Referral 8(a) Certified • Opportunity Referrals & Matchmaking • Advocacy • B2B Matchmaking • Facilitation of JV and Teaming Arrangements Graduating 8(a) • Private Sector Referrals & Matchmaking • Global Opportunity Referrals & Matchmaking • Supply Chain Matching • Mergers & Acquisitions • Sustainability and continued growth strategies 20 Commerce Business Facing Programs OS Office of Small and Disadvantaged Business Utilization MBDA MBDA Business Centers American Indian Alaska Native Centers Specialty Centers Opportunity Initiatives USPTO Inventor’s Assistance Program Roster of Patent Attorney’s Patent and Trademark Depository IP Basics Programs Trademark Assistance Center NIST Measurement Services Office of Technology Partnerships/SBIR Manufacturing Extension Partnership Technology Innovation Program Baldrige Performance Excellence Program BIS Export Controls Counseling Centers ITA U.S. Export Assistance Centers Trade Information Center Advocacy Center Sustainable Manufacturing Export Trade Certificate Export Yellow Pages NTIS Strategic Partnership Program World News Collection Invest in America National Technical Reports Library Trade Missions Program DEA Controlled Substances Act (CSA) Database Featured U.S. Exporters (FUSE) Social Security Administration’s Death Master File Global Teams Program NTIS Customer Contact Center Trade Agreements Compliance Program Office of Intellectual Property Enforcement Trade Finance Guide -Financial Services CENSUS International Buyer Program Statistics of US Business Florence Agreement Program Survey of Business Owners U.S. Foreign-Trade Zones Economic Census Haiti Earned Import Allowance Industry Classification Office of Textiles and Apparel Decennial Census Subsidies Enforcement Office American Community Survey Steel Import Monitoring and Analysis Current Population Survey Trade Remedy Compliance Survey of Income Petition Counseling and Analysis Local Employment Dynamics Watch and Jewelry Program Business Help Site Wool Fabric Tariff EDA Trade Adjustment Assistance Centers University Centers Revolving Loan Funds NOAA MMC Web Mapping Fishery Contingency Fund Navigational Services Small Business Innovation Research Digital Coast Fishing Vessel Capital Construction Fund Fisheries Finance Program Seafood Inspection Note: Programs subject to change ESA/BEA Economic Indicators Survey of Current Business NTIA Federal Frequency Management Coordination of Frequency Broadband Technology Opportunities 21 Next Steps • Support Transitioning 8(a) Graduates • • • • Foster Increased Collaboration MBDA Advocacy Program Expand in Global Markets Leverage Technology Programs for Innovation • Foster Strategic Relationships • Supply Chains • Teaming • Mergers & Acquisitions 22 Close Diversity and Inclusion Matters Thank You For more information contact Efrain Gonzalez, Jr., Associate Director, Office of Business Development, Minority Business Development Agency, U.S. Department of Commerce at egonzalez@mbda.gov 23