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Work Remains to Meet Minority Vendor Goals
YOUNGSTOWN, Ohio -- The state of Ohio moved closer to meeting its minority contracting goals in the most recent fiscal year than it has since those guidelines were put in place in 1980, but still has a long way to go.
For the fiscal year ended June 30, the state spent $165 million with minority-owned businesses, or 14.1% of state spending on goods and services. That compares to $106 million in fiscal year 2013, according to data provided by the Ohio Development Services Agency and the Ohio Department of Administrative Services.
By state law enacted in 1980, the goal is 15% minority participation, says Jackie Williams, chief of the Minority Business Development Division in the Ohio Development Services Agency. “That is the best ever [rate] in the history of the program. So we’re getting closer to that objective but we still have some work to do,” she said.
Williams, along with Todd McGonigle, equal employment opportunity program manager in the Ohio Department of Administrative Services, and Allen McConnell, manager of the Minority Business Development Division, will meet with representatives of minority-owned businesses Monday at noon at the offices of the Mahoning Valley Economic Development Corp.
State officials will detail what business owners need to know to do business with Ohio.
According to Ohio DAS records, of the 1,239 businesses certified by Ohio as minority-owned business enterprises, 23 are in Mahoning County, nine are in Trumbull County and none are in Columbiana County. MBE certification qualifies companies to compete for contracts that have been set aside for minority-owned businesses. The state purchases goods and services ranging from vehicles to information technology and medical services.
“We encourage minority-owned businesses to apply for certification into the Minority Business Enterprise program to increase their opportunities of doing business with the state,” McGonigle said.
Williams primarily attributes the growing percentage of minority participation in state purchasing to Gov. John Kasich’s focus on the issue. Kasich was in the Ohio Legislature when the original legislation passed -- which he voted for -- establishing the goals, she said. As governor, he “now has the authority to say it’s going to happen,” she remarked.
State agencies, boards and commissions also are aware it’s important to the governor, and when anyone high in an organization sets something as a priority, “Things tend to get done,” Williams continued.
“I would say the other thing we’re doing is effectively measuring it,” she added. “Businesses in the state are aware it’s a priority, and they are probably the best ambassadors because they believe this opportunity is real and they’re sharing that information with their networks.”
Ohio funds six minority business assistance centers across the state, including one housed at MVEDC in Liberty Township that serves a seven-county region. In addition to assisting with certification, the centers provide professional counseling and training as help connect companies with sources for state loans and bonds.
“The business assistance centers are our agents on the ground, and their goal is to identify those companies and help build their expertise so that they can take advantage of the opportunity,” Williams said.
Pictured: Six minority business assistance centers are operated by the state of Ohio.
Copyright 2014 The Business Journal, Youngstown, Ohio.
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