Virginia’s new Minority Business Commission could make a real difference for minority business owners trying to get ahead in a competitive economic environment that sometimes seems stacked against them.
Lawmakers approved creation of the commission in the two-year budget Gov. Ralph Northam signed in May. The bill took effect on July 1. It’s already been holding virtual forums with business owners in Hampton Roads to find out how they think the commission can help them.
The idea is to give minority business owners and entrepreneurs a forum to have their problems and opinions heard. It also should be a place where those in a position to do something about those concerns will listen and work together with business owners to come up with reforms and solutions.
The commission brings together business owners from across the state, lawmakers, local officials and representatives of advocacy groups.
As it gears up, the statewide commission has been looking at the example of Virginia Beach’s Minority Business Council, which has been working for more than 20 years to bring business leaders and local government officials together to figure out ways to help businesses owned by women and minorities, many of which are small businesses struggling to gain a foothold.
The need for such efforts should be obvious. One indicator is the gaping disparity in the awarding of state contracts for goods, services and construction. Last summer, Northam issued an executive order for a comprehensive study to see what progress Virginia has made in its efforts to make sure women- and minority-owned businesses have a fair chance of getting their share of those state contracts.
The study is an update of one nine years ago that revealed that only 2.82% of total state contracts went to businesses owned by woman and minorities. The Denver, Colorado, consulting and research firm doing the study is expected to release its findings by the end of the year.
State contracts are important, but just one part of the economy. The new commission will look at ways to improve the competitiveness of minority-owned businesses across the state’s economy.
One thing the commission will examine — and listen to business owners’ experiences about — is how existing state laws and programs affect minority businesses. Sometimes there are unintended consequences. Sometimes the way laws were written or programs were set up doesn’t reflect today’s reality. Programs may need to be reshaped or expanded to help minority business owners get the tools and skills they need to compete.
The commission will consider whether changes are needed and what they should look like.
The commission also may be gearing up at just the right time to help minority-owned businesses participate fully in efforts being mounted to help the economy recover from the effects of the coronavirus pandemic. There has been criticism of the federal efforts to help small businesses through the crisis. Some of the money available has gone to businesses that hardly seem to qualify as small, while mom-and-pop operations have been left out. The commission might be able to shape recovery efforts in Virginia that will include help for minority-owned businesses.
Governments on all levels have grappled with the known disparities in opportunities for minority- and women-owned businesses for decades. It has become apparent that the solution is not so much to create “set-asides” giving a certain percentage of business to certain types of businesses. That approach is too often open to abuse, as politicians and advocates squabble over who should qualify and whether such programs eliminate the kind of competition that makes businesses better.
What’s needed is not to give some businesses an unfair advantage. Rather, the goal is to make sure that those who, for one reason or another, have been struggling against systemic disadvantages can have a fair shot at success. As Americans consider ways to overcome racial disparities in so many areas of life, opening up economic opportunities should be a priority.
