new grow your business. build the nation. · 2020. 8. 11. · middle market and private equity ....

Grow your business. Build the Nation.

Edith McCloudActing National Director

(202) [email protected]

1401 Constitution Avenue, NW, Washington, DC 20230

ABOUT MBDA

STATE OF MINORITY BUSINESS ENTERPRISES

MBDA BUSINESS CENTER NETWORK

MBDA PERFORMANCE BASED

OVERVIEW

2

V I S I O N

Economic prosperity for all American business enterprises

M I S S I O N

To promote the growth of minority-owned business through the mobilization and advancement of public and private sector

programs, policy, and research

MBDA is an agency of the U.S. DEPARTMENT OF COMMERCE working on behalf of the nation’s minority-owned firms in support of their growth and global competitiveness.

ABOUT MBDA

3

BUSINESS DEVELOPMENT

Maximize JOB CREATION and GLOBAL COMPETITIVENESS for U.S. minority-owned businesses through increased access to capital, contracts and markets.

EDUCATION, RESEARCH AND INFORMATION

PRODUCE and PROMOTE INFORMATION for and about minority business enterprises.

POLICY, ADVOCACY, AND OUTREACH

Create informed POLICY AGENDAS to ADVOCATE for and to conduct OUTREACH on behalf of minority business enterprises.

OPERATIONAL EXCELLENCE

Advance agency services by being RESPONSIVE and NIMBLE, rapidly adapting to the changes in the minority business landscape.

STRATEGIC FOCUS

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The MBDA Distinction

Focused exclusively on MBEs with no size restrictions

Accelerates firm growth from less than $10M to $50M+

Fosters strategic growth regionally, nationally and globally

Provides a high touch, customized case management approach

Facilitates middle market and private equity financing

Assists SBA’s 8(a) program graduates to diversify revenues from Federal to private sector contracting and consumer markets

Assists MBEs with teaming, joint ventures and mergers & acquisitions

Recruits export ready MBEs for Secretarial trade missions, multilateral partnerships, and global supply chains

Advocates for MBE concerns and regulatory impediments

State of Minority Business Enterprises

Projected Population Demographic Changes

Minority population is growing faster than non-minorities

Graph excerpts from “Diversity Explosion” by William H. Frey, Senior Fellow, The Brookings Institution, Metropolitan Policy Program

Non-Minority & Minority Populations, 1970-2050

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Projected Population Demographic Changes

Non-Minority Minority

U.S. Minority Business Enterprises

There are

8millionminority-owned

businesses in the U.S.

• Contribute $1.4 trillion in economic output

• 11% of minority-owned firms have paid employees —7.2 million jobs

• Represent 29% of all firms in the U.S.

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Source: U.S. Census Bureau, 2012 Survey of Business Owners, December 2015

3.9

5.8

8.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

2002 2007 2012

Minority Firms

The number of minority firms more than doubled

Source: U.S. Census Bureau, 2002 Survey of Business Owners, September 2006U.S. Census Bureau, 2007 Survey of Business Owners, June 2010U.S. Census Bureau, 2012 Survey of Business Owners, December 2015

Num

ber i

n M

illio

ns

9

U.S. Minority Business EnterprisesTrend

Gro

ss R

ecei

pts

In T

rillio

ns o

f Dol

lars

Minority Firms

Economic activity of minority firms doubled


0.7

1.0

1.4

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1 2 32002 2007 2012

10


Num

ber o

f Pai

d Em

ploy

ees

In M

illio

ns


Minority Firms

2002 2007 2012

4.7

5.8

7.2

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

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U.S. Minority-Owned Firms & Export Sales(2007)

Source: U.S. Census Bureau, 2007 Survey of Business Owners released June 2010

95% of the World’s Consumers are Outside the U.S.MBEs are:•Uniquely qualified to enter global markets

•2x as likely to export•3x as likely to already have international operations

•6x as likely to transact in a language other than English

Source: MBDA, Minority Exporters: Characteristics and Strategies for New Business

and Expansion, 2015

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U.S. Business Growth Comparisons (2007 – 2012)

Source: U.S. Census Bureau, 2012 Survey of Business Owners released December 2015

12

In T

rillio

ns o

f Dol

lars


Combined Gross Receipts

0.7 1.0 1.4

8.0

9.810.5

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Minority

Non-Minority

2002 2007 2012

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U.S. Business Gross Receipts Comparisons (2002 – 2012)

In T

hous

ands

of D

olla

rs


Average Gross ReceiptsMinority firms continue to lag in size when compared to non-minority firms

167 178 174

439488

552

0

100

200

300

400

500

600

1 2 3

Minority

Non-Minority

2002 2007 2012

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U.S. Business Gross Receipts Comparisons (2002 – 2012)


Average Gross Receipts - Firms with Employees

2002 2007 2012

0.91.1

1.3

1.6

2.12.3

0.0

0.5

1.0

1.5

2.0

2.5

Minority

Non-Minority

In T

hous

ands

of D

olla

rs

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U.S. Business Gross ReceiptsComparisons (2002 – 2012)

Source: U.S. Census Bureau, 2012 Survey of Business Owners, December 2015

Minority Firms Non-Minority Firms

11%

89%

Number of firms with paid employees

Number of firms without paid employees

22%

78%

4.2M

14.8M

0.9M

7.0M

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U.S. Business Employment ShareComparison

Disparities in Public Contracting

http://www.mbda.gov/sites/default/files/ContractingBarriers_AReviewofExistingDisparityStudies.pdf

MBDA Commissioned Study• Review of 100 Disparity Studies• Analysis of public contracting data

Findings• Based on the proportion of number

of MBEs available to bid on and perform contract work

• MBEs secure lower number and dollar amount of contracts

• Data indicates substantial disparity exists

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Frequency of Barriers Identified

http://www.mbda.gov/sites/default/files/ContractingBarriers_AReviewofExistingDisparityStudies.pdf

Prevalent barriers and causes of underrepresentation• Networking• Bonding Requirements• Receiving Timely Payment• Access to Capital• Attitude• Late Bid Notification• Large Project Sizes• Insurance Requirements• Higher Standards• Bid Shopping• Capability Stereotypes• Held Bid• Double Standards• DBE Stigma

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MBDA Business Center Network

MBDA BUSINESS CENTERS

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MBDA Services:Access to Capital• Identify and facilitate financing

opportunities

• Capital identification based on industry specialization

• Financial management and planning

• Financing forums and networking events

• Identification and closure of mergers and acquisitions

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• Identification of procurement opportunities

• Opportunity matching and referrals

• Solicitation analysis

• Bid and proposal preparation

• Business certifications and registration assistance

• Targeted teaming arrangements and joint ventures

MBDA Services:Access to Contracts

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MBDA Services:Access to Global Markets• Market research, feasibility

studies, and promotion

• International market analysis and trade assistance

• Certified trade missions in collaboration with the International Trade Administration

• Sales consulting and forecasting

• Business-to-Business (B2B) matching

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Expanded Services:Specialty Expertise in the Network

— Federal Contracting Center

— Capital Center

— Advanced Manufacturing Centers

— Export Centers

— Technology Transfer and Innovation

Newly Launched Specialty Programs

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MBDA Performance Based

MBDA Contracts & Capital

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$0.0 $1,000,000,000.0 $2,000,000,000.0 $3,000,000,000.0 $4,000,000,000.0 $5,000,000,000.0 $6,000,000,000.0 $7,000,000,000.0

FY 2012

FY 2013

FY 2014

FY 2015

FY 2016

2,207,782,256

3,245,180,941

4,814,497,387

3,978,893,469

1,863,889,533

1,376,692,577

1,544,310,370

2,119,215,928

1,941,891,663

1,393,085,245

NOTE: FY 2015 and FY 2016 parallel the end and start of the MBDA Business Center 5 year cycle, respectively, which traditionally accounts for a dip in performance.

MBDA Job Creation & Retention

6,500 11,575

14,319 12,507 7,966

10,230

14,129

16,337

14,389

7,831

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Jobs Created Jobs Retained

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Summary

WHO WE ARE: MBDA is the only Federal Government agency solely dedicated to the growth and global competiveness of minority business enterprise.

WHAT WE DO: Our initiatives, programs, and services provide greater access to capital, contracts, and markets for minority-owned businesses.

WHY WE DO IT: Minority-owned firms expand the U.S. economy, strengthen local communities, and support greater job creation.

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new grow your business. build the nation. · 2020. 8. 11. · middle market and private equity ....

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