10 Things You Didn’t Know About Minority And Women Owned Businesses In NYC

The Good:

1. Minority- and women-owned business enterprises (M/WBEs) comprise over half of all firms in New York City.

2. The number of certified M/WBEs in the City increased by 12.5 percent in the past year.

3. In April 2015, Mayor de Blasio introduced One NYC: The Plan for a Strong and Just City, setting a goal to award a minimum of $16 billion over the next 10 years to certified M/WBEs.

4. From 2007 to 2012, the number of MBEs in New York City increased by 34 percent while the number of WBEs increased 36 percent.

5. In order to further increase transparency, for the first time ever, the Comptroller’s Office has created a set of dynamic interactive maps that illustrate the City’s spending on certified M/WBEs by race, ethnicity and gender, community district, and borough, from 2011 to 2016.

The Bad and The Ugly:

6. In the past year, the City procured $15.3 billion worth of goods and services, but only 4.8 percent went to M/WBEs—down from 5.3 percent. This is the first decline since 2013, an issue that casts doubt on the efficacy of the 2015 OneNYC initiative to invest in these companies.

7. Statistics prove access to capital is as much an issue today as it was in 1969, when the Minority Business Development Agency of the U.S. Department of Commerce was first established.

8. MBEs are 2 to 3 times more likely to be denied when applying for business loans than White-owned firms. When they do receive loans, on average, they receive less than half the amount of White-owned firms at approximately 2 percent higher interest rates. (If you are struggling personally with this issue, definitely reference these tips from the author of the definitive guide to startup pitch decks)

9. The gaps in wealth in NYC are so large that if White wealth remained stagnant at today’s levels and average wealth for Latino and Black families grew at the same pace it has over the past three decades, it would take Latino families 84 years, and Black families 228 years to reach wealth parity with White families. Lower wealth levels are a barrier to entry for minority entrepreneurs.

10. The average value of MBEs are significantly lower than the average value of White-owned businesses. White-owned businesses in New York State are, on average, worth two times more than the average Asian-owned businesses, eight times more than the average Hispanic-owned businesses and thirteen times more than the average Black-owned businesses.

*All facts pulled directly from Making the Grade 2016 Executive Summary distributed by the City Comptroller, Scott Stringer, in November

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