New York City plans to expand the M/WBE program to increase opportunities for minority and women-owned businesses.

November marks National Entrepreneurship Month, a pivotal occasion to acknowledge the significant contributions of entrepreneurs to New York’s status as a global hub in finance, arts, and entertainment. The entrepreneurial spirit permeates the city’s landscape, from the local coffee shop owners who energize residents each morning to the innovators driving new economic growth. This essence of entrepreneurship forms the bedrock of both local and national culture.

In New York City, the vibrancy of entrepreneurship is particularly evident among minority- and women-owned business enterprises (M/WBEs), which have historically faced barriers limiting their access to city contracting opportunities amounting to tens of billions of dollars. Recognizing these challenges, city officials set ambitious targets three years ago, aiming to allocate billion in city contracts to M/WBEs by the end of the Fiscal Year 2026 and billion by the end of Fiscal Year 2030. Achieving these goals entails ongoing commitments, reinforced by two key mayoral executive orders in 2023.

The first, Executive Order 26, established a citywide chief business diversity officer position and instructed municipal agencies to utilize the M/WBE small purchase contracting method to its full capacity of million. Similarly, Executive Order 34 created chief contracting diversity officers within agencies, tasked with identifying contracting opportunities and reevaluating M/WBE participation goals for capital projects exceeding million.

To ensure these initiatives are well-informed, the M/WBE Advisory Council, comprising 58 distinguished members from various sectors, serves as a vital resource in advancing opportunities for M/WBEs. The city has seen remarkable progress, as evidenced by the historic fiscal achievements of the last three consecutive years, during which municipalities awarded over billion annually to M/WBEs.

For Fiscal Year 2025, city agencies awarded .9 billion in total M/WBE contracts, positioning the city well ahead of its FY 2026 target by six months. Local Law 1, governing M/WBE program operations, saw utilization soar to 36.4%, the highest ever recorded, and contracts reached .2 billion—surpassing last year’s record of .59 billion.

Additionally, collaborations with state lawmakers in 2023 have enhanced the tools available for M/WBE support, such as increasing the small purchase cap from million to .5 million, which led to a record 0 million in contract awards using this method.

Upcoming initiatives, including the fully operational Centralized Construction Mentorship Program, aim to provide mentoring, capacity building, and prime construction contracts worth up to million. Furthermore, a new M/WBE data tracking system is set to improve real-time data access, thereby promoting timely payments and enhanced programmatic interventions for M/WBEs.

This strong commitment to equity in government contracting has positioned New York City’s M/WBE program as the most successful in the nation, with over billion in contracts awarded since January 2022. These contracts not only foster economic growth but also create employment opportunities, improve health outcomes, facilitate home ownership, and promote sustainable communities. With the establishment of comprehensive New York state M/WBE laws, communities of color are now assured a permanent role in the procurement processes that shape the city’s economic landscape.

Media News Source