Women & Minority Entrepreneurs

Looking to get your piece of the lucrative procurement pie? Your first-and possibly only-thought may be to hit up the federal government. Although Uncle Sam is by far the biggest procurement contractor, corporations, local governments, colleges and nonprofit organizations are also valuable sources of procurement dollars.

Getting procurement dollars has not always been easy for women and minorities, so many entrepreneurs have used affirmative action programs to help them. "Affirmative action has lifted more than one-third of blacks in this country into the economic middle class," contends Harriet Michel, president of the National Minority Supplier Development Council (NMSDC) in New York City. However, despite such successes, recent court challenges and congressional activity may change the shape of affirmative action programs-if not eliminate them altogether.

• State Of Affairs
  

Current procurement programs range from making informal efforts to spend money with women- and minority-owned businesses to setting aside a percentage of contracts for them. The federal government buys at least 20 percent of its goods and services from small businesses, with 5 percent of that going to firms owned by socially and economically disadvantaged individuals-a category that includes ethnic minorities and people with disabilities.

A recent overhaul of the procurement system mandated that 5 percent of federal dollars spent on small companies must go to women-owned firms. "This is the first time mandatory goals have been set for women-owned businesses," says Judith Roussel, the Small Business Administration's (SBA) deputy associate administrator for government contracting. A Women-Owned Business Procurement Pilot Program is being tested in 11 federal agencies to increase dollars spent on women-owned businesses.

In addition to the government, cities, school boards, public utilities, universities and corporations also seek women and minorities to supply products and services. In Springfield, Illinois, for instance, a minority business enterprise/female business enterprise policy specifies 12 percent of all city dollars must be spent with these businesses.

• Procurement Procedures
  

To sell to the federal government, start by registering with the SBA's Procurement Automated Source System (PASS). Also, actively market your business to specific agencies or prime contractors, and check out the Commerce Business Daily, which lists available contracts. Another source, the annual U.S. Government Purchasing and Sales Directory, lists more than 4,000 items the government buys.

Certification as a women- or minority-owned firm is essential. Entrepreneurs can be certified through many different venues. Many cities or entities have their own certification programs. A good general place to start is with the SBA, which offers the 8(a) program for minorities as well as the PASS system. Minorities can also be certified through the NMSDC.

This article was originally published in the January 1996 print edition of Entrepreneur with the headline: Women & Minority Entrepreneurs.