The Minority Business Development Agency: Vital to Making America Great

Tools and Resources
Post a comment

MBDA Vital to Making America GreatBy 2044, the Nation’s prosperity will rely even more on minorities, the fastest growing segment of the population.  Entrepreneurship is a sure pathway to wealth creation and a thriving national economy.  Today, U.S. minority business enterprises represent 29% of all firms but only 11% have paid employees.  If MBEs were to obtain entrepreneurial parity, the U.S. economy would realize 13 million more jobs.

Building Prosperity for American Families

  • Create a new generation of minority-owned firms with $100M in annual revenue to generate more jobs and help grow the U.S. economy through targeted programs and services.  

  • Increase wealth creation that secures personal and family well-being, reduces dependence on government resources, and contributes to overall economic vitality.

  • Cultivate successful minority-owned firms to foster economic activity in local communities and increase utilization of community benefits, such as transportation, infrastructure, housing and quality education.

Expanding Economic Investments

  • MBDA secures an annual average of $5.4B worth of contracts and financial investment in minority-owned firms, increasing the number of businesses with revenues that exceed $1M and create jobs for Americans.

  • MBDA leverages public-private partnerships whereby the private sector contributes nearly $5.5M annually in non-federal investments to the national network of MBDA programs.

  • Minority-owned businesses expand and diversify the tax base creating sustainable communities with a steady rate of economic growth.

Strengthening America’s Competitiveness 

  • Position minority-owned firms to perform in high growth industries, emerging markets, and corporate supply chains.

  • Reduce the trade deficit by leveraging the unique assets of minority-owned firms in global markets.

  • Commission research reports and business analytics that demonstrates the minority business community as a vibrant and growing business sector.

Return on Investment: For every federal $1 spent MBDA gets one of the highest returns for business assistance in the Federal Government.  Over the past 10 years the Agency’s programs and services have secured more than $40B in contracts and capital, with accelerated performance averages and returns on investment.

Unique Challenges Faced by Minority Firms

Overall, minority-owned firms are smaller in size and scale than their non-minority counterparts.  The gap in combined gross receipts is 10:1, with only 2% of minority firms generating gross receipts of more than $1M and only 11% of minority-owned firms with paid employees.

Capital

  • Minority firms are more likely to be denied loans at a rate nearly 3x’s higher than non-minority firms

  • Minority firms are likely to pay higher interest rates; on average 7.8% while non-minority firms pay on average 6.4%

  • Minority firms are less likely to receive loans; and when approved, receive lower loan amounts.

Contracts

  • Minority firms secure a lower number and dollar amount of contracts in proportion to the number of available minority firms in the relevant market.

  • Pervasive barriers cited in contracting disparities studies include:

    • access to capital;

    • large contract sizes;

    • network access; and

    • marketplace inequities.

MBDA – The Solution Provider

The only Federal Government agency solely dedicated to the growth and global competiveness of minority business enterprise.

Return on Investment

Performance in Billions

MBDA:

  • Provides access to market-based financing solutions.
  • Facilitates teaming arrangements and mergers and acquisitions.
  • Partners with private-sector Fortune 500 firms to provide access to global supply chains.
  • Transitions minority 8(a) [SBA program] graduate firms to the private sector.
  • Develops policy recommendations that address minority business inequities

Related content

Tools and Resources
Image(s) included
Post a comment

Type of Tool or Resource: 

On behalf of the U.S. Department of Commerce, Minority Business Development Agency (MBDA) you are invited to join us as we host the National AAPI Business Summit in...
Tools and Resources
Post a comment

Type of Tool or Resource: 

Open Competitions MBDA Broad Agency Announcement Resources Sample - Guidance For FFO Budget Narrative Training Documents and Videos for Grants.gov Federal Funding Opportunity...
Last updated: 04/21/2017 - 1:34pm