New York City aims to enhance the benefits of its Minority and Women-owned Business Enterprise program.
As November marks National Entrepreneurship Month, it provides an opportunity to acknowledge the significant contributions of entrepreneurs in shaping New York City into the global hub of finance, arts, and entertainment. Each local business, from a neighborhood coffee shop to innovative startups, embodies the entrepreneurial spirit that underpins both local and national cultures.
This entrepreneurial ethos is particularly evident within the city’s certified minority- and women-owned business enterprises (M/WBEs), which have historically faced systemic barriers preventing their full access to substantial city contracting opportunities. Recognizing the importance of equity, city officials set ambitious financial goals three years ago to allocate billion in city contracts to M/WBEs by the conclusion of Fiscal Year (FY) 2026, with an elevated target of billion by FY 2030. These fiscal goals are supported by strategic measures outlined in two executive orders issued in 2023.
Executive Order 26 initiated the role of the first citywide chief business diversity officer and required city agencies to maximize the use of the M/WBE small purchase method of contracting, raising the upper limit to million. Subsequently, Executive Order 34 established agency chief contracting diversity officers to ensure greater accountability and transparency within agency procurement processes. This order also mandated agencies to explore new contracting opportunities for M/WBEs by reassessing participation goals and breaking down larger contracts into smaller, manageable components, thereby fostering equitable contracting practices.
Collaboration has been key, as demonstrated by the ongoing efforts of the M/WBE Advisory Council, composed of experienced leaders from both the public and private sectors. Their collective insights have greatly contributed to advancing opportunities for minority- and women-owned businesses.
The commitment to M/WBEs has resulted in unprecedented achievements in recent fiscal years. In FY 2025 alone, city agencies awarded an impressive .9 billion in M/WBE contracts, marking three consecutive years of exceeding billion in spending and positioning the city poised to meet its FY 2026 target six months ahead of schedule. In terms of utilization, M/WBE participation reached an all-time high of 36.4%, a testament to the program’s effectiveness and ongoing evolution.
Significant legislative progress was made in 2023, including the successful increase of the M/WBE small purchase cap from million to .5 million. This change facilitated a record-breaking 0 million in contracts awarded under this new threshold, effectively doubling the previous year’s figures.
Looking ahead, the Centralized Construction Mentorship Program, another initiative born from 2023 legislation, is set to launch fully. This program aims to provide critical support such as mentorship, capacity building, access to capital, and bonding assistance to enhance procurement for M/WBEs. Additionally, new data tracking technology will improve the efficiency and timeliness of contract payments, addressing long-standing concerns regarding transparency in the system.
Through dedicated efforts focused on equity in government contracting, New York City has established its M/WBE program as a national leader, responsible for over billion in contracts since January 2022. These contracts not only create economic opportunities but also facilitate broader societal benefits, including access to healthcare, homeownership, and improved educational outcomes for communities of color, ensuring they remain integral to the city’s economic landscape.
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