American Express Report on Minority Small Business Owners and Government Contracts
According to a new report, total government contracting spend among small disadvantaged businesses (SDBs, the majority of which are minority-owned firms) in 2012 amounted to $32.3 billion, 8% of the total contract spending – which exceeds the government’s 5% procurement goal.
Last year, minority business owners invested an average $143,356 in seeking federal procurement opportunities – a figure that is 11% higher than the amount invested by all active small business contractors, and 32% higher than the investment minority-owned businesses made three years prior. The new data comes from the third report which provides an in-depth look at minority-owned small business federal contractors. This is the third year that American Express OPEN has published a report on active small business contractors for the American Express OPEN for Government Contracts program.
Notable findings from the study include:
A look at the three most populous minority groups finds that Hispanic contractors are investing the largest amount seeking procurement opportunities: $154,842 in 2012, followed by Asian American contractors at $141,284 and African American contractors at $110,530.
Minority contractors are increasing their contract performance activity, fulfilling an average 3.2 contracts compared to 2.2 among non-minority contractors. They also report a higher level of contracting activity now compared to five years ago: 39% of minority contractors have increased their contract activity, compared to 29% of non-minority contractors.
Minority small business contractors – specifically African American and Latino contractors – are more likely than average to leverage the designations and certifications that are available to them. Fully 86% of minority business owners hold at least one of 10 designations or certifications, compared to 68% of Caucasian business owners. 97% of African Americans have at least one certification, as do 89% of Hispanic contractors.