Minority and women-owned business enterprises, or MWBEs, are more than just letters in an acronym. They represent the beating heart of our city’s economy. Dreamers and do-ers, strivers and go-getters, these are the businesses that make our city move.
But they haven’t always been treated that way. For too long, poor policies, bad management, and a general oversight of this vital demographic eventually led to M/WBEs being left behind.
Now, we are turning the corner, and the results speak for themselves. Recently, Mayor Adams announced $6.4 billion in total MWBE contracts and a record-breaking 31.2 percent MWBE utilization rate, milestone achievements that mark progress towards awarding an ambitious goal of $25 billion in contracts to MWBEs by Fiscal Year 2026.
While we celebrate our victories today, tomorrow we remain steadfast in our goal of breaking another record next fiscal year for these vital businesses. First, let’s understand how we got here.
The Adams administration took serious steps to move MWBEs from the backseat to the top of the city’s agenda. Mayor Adams created the position of the city’s first ever chief business diversity officer with Michael Garner at the helm. The sole function of this role was simple: make it easier, not harder for city government to do business with MWBEs. Make no mistake, city government has both a substantive and symbolic role in supporting MWBEs. Not only is it good for the entire economy, but it is vital for the municipal government to serve as a role model to all sectors, showing you can deliver quality services to New Yorkers while prioritizing diversity.
Secondly, our lawmakers stepped up to the plate. Thanks to leaders like Governor Kathy Hochul, New York State Senator James Sanders and New York State Assemblymember Rodneyse Bichotte Hermelyn, commonsense reforms were signed into law that cut red tape and created opportunities. New laws authorized agencies to award up to $1.5 million through the city’s M/WBE Small Purchase method, tripling the initial threshold of $500,000 from the de Blasio Administration.
This enhancement has paved the way for MWBEs to better compete for small purchase contracts: agencies awarded $250 million in contracts to MWBEs via this contracting method—up from just $77 million in Fiscal Year 2021. This has led to more than 60 percent of the total contract value awarded to Asian women-owned or Black- and Hispanic-owned businesses, which have historically been the most underutilized categories of M/WBEs. Smart changes led to real impact.
However, behind all the numbers, figures, and legislation are real stories. Small businesses with big dreams, who too often were confronted were racial and gender barriers that halted their success. The MWBE programs sought to turn those dreams into realities, fulfilling the quintessential American Dream of entrepreneurship. The work is far from over and more work needs to be done, but progress is being made to honor and support these New Yorkers.
That’s where we are hoping to step in. Together, as co-chairs of the newly formed MWBE Advisory Council, we are bringing every stakeholder to the table – from civic and corporate to policy experts and political leaders – who are laser-focused on executing one goal: supporting MWBEs.
Our North Star is far and wide, but that’s what our MWBEs deserve. We should aim for the stars because MWBEs are the economic engines of our communities. They are the mom-and-pop shops, vendors who help city government function, and lend a hand to those most in need. In short, when we invest in our MWBEs, our entire economy thrives.
Former New York City Comptroller William Thompson and New York Building Congress Chairperson Emeritus Elizabeth Velez are the chairs of the newly formed MWBE Advisory Council.
