September 1st 2023.
As National Black Business Month comes to a close, many cities are still struggling to close the gaps in equity between Black business owners and their white counterparts. One of those cities is Philadelphia, known as the 'City of Brotherly Love'.
In fiscal year 2021, the local government awarded over $560 million in contracts for public works, professional services, supplies, and equipment. Unfortunately, nearly 80% of these contracts went to white non-Hispanic men, with the remaining 20% split between women, minority, and disabled businesses. These numbers are particularly concerning given the major contracting projects happening in the city.
The current situation can be traced back to a controversial ruling by the United States Supreme Court in 1989. The court struck down ordinances that would set aside a percentage of government contracts for minority-owned businesses, arguing that general assertions of racial discrimination could not solely be used to justify equality initiatives. Matlock Turner, CEO of the Urban Affairs Coalition, explains: “At that point, the idea was in order to effectively establish goals that were going to stand up in court, you had to base them on real data. So if 30% of the electricians in Philadelphia were people of color, you could establish that as a goal.”
Despite the legal system in place, minority-owned businesses are still significantly behind their white counterparts in Philadelphia. To bridge the gap between different demographics, Carlos Jones, executive project manager for economic development projects at the Urban Affairs Coalition, suggests that businesses should be given the opportunity to work on smaller projects to build their skills. “You have to build a pathway for success,” Jones said.
As we continue to celebrate National Black Business Month, it's important to remember the ongoing inequalities facing Black business owners. We must take the necessary steps to ensure that minority-owned businesses have the same opportunities as their white counterparts.
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