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Q&A with the Virginia Minority Supplier Development Council
The Census Bureau recently reported large increases in the number of businesses owned by African-Americans, Hispanics and Asians. Cynthia Turner, chairman of the Virginia Minority Supplier Development Council and first vice president, supplier diversity, for SunTrust Bank, talked with Gerald L. Gordon, Ph.D., president and CEO of the Fairfax County (Virginia USA) Economic Development Authority about the increasing role that minority-owned businesses play in the U.S. economy and ways that minority-owned businesses can gain an even stronger footing in the years ahead.
1. How important are minority-owned businesses to the US economy?
Small businesses, including minority business, are the economic engine of the United States. They create the majority of jobs and spur innovation. Successful minority businesses help generate wealth creation and employment within their communities.
2. What are hurdles or challenges that minority-owned businesses face today as they try to be part of the overall economy?
Offshoring, outsourcing, global competition, corporate supply base optimization, and contract consolidations tend to orient many procurement opportunities to large companies with national or global scope and substantial size and scale.
3. Do you see government contracting as a valuable prospect for minority-owned companies?
The federal government was the first business sector to take proactive measures to open its doors to minority suppliers and continues to represent a huge market for all small and diverse businesses.
4. We hear a lot of about federal contracting, but how important are state and local government opportunities for minority-owned companies?
State and local government present significant opportunity for minority-owned businesses. These governments typically want to do business with companies in their geographies, and minority businesses are often well-connected and knowledgeable within these communities, consequently having much to offer potential customers. It's a great marriage of opportunity, availability, and skill.
5. How about subcontracting with larger established companies?
Subcontracting, particularly in the federal contracting arena, has long represented a point of entry for small and minority businesses. I believe subcontracting will continue to provide fertile ground for minority businesses as other corporate and government entities begin to seek or require diversity inclusion through subcontracting on their large projects or contract requirements. Minority entrepreneurs that master the art of forging business relationships that can easily translate to partnerships, joint ventures or strategic alliances will have the advantage in capitalizing on those relationships.
6. What sort of organizations exists to help minority-owned companies grow and succeed?
Many business assistance and development organizations exist for small, minority and women-owned companies. SunTrust considers the premier minority business development organization in Virginia to be the Virginia Minority Supplier Development Council. Its certification of MBEs provide a high degree of credibility and confidence to corporate and government entities seeking to do business with bonafide minority suppliers, as well as a formidable marketing tool for minority businesses seeking procurement opportunities with corporate and government buyers.
7. We have many successful minority-owned companies in the Fairfax County/Washington, D.C. region. Why is that?
Again, I believe it is the perfect marriage of opportunity and availability. Northern Virginia has a strong base of government agencies, government contractors, and high tech companies. Many minority companies provide the products and services these entities require.
8. What is the outlook for minority-owned businesses in the next few years?
I believe the outlook remains bullish for those minority businesses that have the size and scale to compete on large projects and contracts, or can create or respond to specialized niches in the marketplace. Minority businesses must be able to articulate quickly, clearly, and succinctly their sweet spot and value proposition and leverage the traditional strengths of the small business - flexibility, nimbleness, innovation, customization, and "high touch-high tech" customer service.
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