Harris County’s Utilization of Minority-Owned Businesses Increases by 115%
Two years after Harris County addressed a disparity study finding that showed the county significantly underutilized businesses owned by women and people of color, significant progress has been made to level the playing field through the county’s Minority- and Women-owned Business Enterprise (MWBE) program.
Harris County Department of Economic Equity and Opportunity presented a report to Commissioners Court on January 31st showing that the county’s overall utilization of minority- and women-owned businesses has increased by 115%.
“This is incredible progress. For too long, businesses ran by people of color and women didn’t have a fair shot when it came to doing business with the county,” said Commissioner Rodney Ellis, who led the effort to start the program. “But we still have distance to go to increase utilization in every category and create a more fair, inclusive and level playing field for MWBEs doing business with Harris County.”
Another milestone reflected in the MWBE Utilization Report shows that the program’s participation rate increased from 9.1.% in 2020 to 19.5% in 2022, which puts the program more than halfway to meeting its aspirational goal of 30% MWBE participation.
People of color and women make up a significant portion of the local economy as small business owners and entrepreneurs but often face barriers that undermine their long-term success. Fair competition for government contracts plays an outsize role in helping these businesses succeed because the barriers to private contracting opportunities often are higher.
“When MWBEs are successful and thriving, it helps bridge economic divides by building wealth and creating more opportunity in our communities,” said Commissioner Ellis. “Harris County needs an economy that works for everyone where all families can thrive. But there are still deep economic inequities.”
For example, the gaps in homeownership for Harris County’s Black and Brown residents are larger today than in 1968 when the Fair Housing Act passed. In addition, Black household income is 63% of white households in Harris County, and Latino income is 71% of white household. The ability to build and create wealth is key to closing these inequality gaps.
Successful MWBEs can play a unique and pivotal role in closing these gaps through job creation and community-driven economic growth.
“Given the significant role these businesses play in our local economy and communities, the county’s MWBE program should go beyond setting goals to ensure more businesses are qualified to be county vendors. We need to follow best practices to invest in technical assistance, unbundle contracts and increase access to capital,” said Commissioner Ellis. “We must ensure the county’s Department of Economic Equity and Opportunity has the proper resources to make small businesses successful so that our communities are successful.”
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