Letter from Deputy Under Secretary of Commerce for Minority Business Development Eric Morrissette

2024 was historic for the Minority Business Development Agency (MBDA). Three years since the passage of the Minority Business Development Act of 2021, I am proud to say that MBDA has established itself as a permanent, influential force for the country’s more than 12 million minority business enterprises (MBEs).

MBDA’s work is fueled by the communities we serve, which is why this year I traveled across the country to meet with entrepreneurs, industry leaders, and our national network of program partners. It was clear that people were excited by the historic investments and capital opportunities present for MBEs. But more importantly, our communities are more motivated than ever to break down more barriers and open more doors for MBEs.

Under the Biden-Harris Administration, MBDA’s network helped businesses secure over $3.2 billion in contracts and $1.6 billion in capital, and helped to create and retain over 23,000 jobs. This year also marked the first year of MBDA’s Capital Readiness Program, the largest-ever federal program of its kind designed to help underserved entrepreneurs grow and scale their businesses. In year one, CRP served over 6,300 entrepreneurs and helped raise $263 million in capital. This work represents progress against closing the $7.1 trillion opportunity gap that remains MBDA’s north star in strengthening America’s economy and national security.

I am most proud that this year, and over the last four years, MBDA has built an Agency that will last. In 2021, a bipartisan coalition supported the Minority Business Development Act because they recognized our economy is strongest when all Americans have the opportunity to build a successful business. Thanks to their leadership and the leadership of President Biden, we now have a permanent, influential, data-driven federal agency dedicated to achieving that goal. That is a legacy worth celebrating and upholding for generations.

It has been the honor of my life to help lead this Agency to new heights and to help solidify the Minority Business Development Agency as the only permanent federal entity dedicated to the growth and global competitiveness of America’s minority business enterprises.

With gratitude,
Eric Morrissette, Deputy Under Secretary of Commerce for Minority Business Development

HIGHLIGHTS

Year One Of The Capital Readiness Program

Last year, MBDA launched the Capital Readiness Program (CRP), the largest-ever federal program of its kind designed to help minority and other underserved entrepreneurs grow and scale their businesses.

During the first year of the program, MBDA invested in new technologies to improve our methods of communicating goals, capturing data, and establishing metrics. We also hosted several training sessions to upskill and onboard the new program operators. Ultimately, these efforts helped MBDA to establish, grow, and scale the program.

Over the four years of the $125 million program, MBDA delivered funding to 43 incubators and accelerators across the country with expertise helping minority and other underserved entrepreneurs access capital, resources, and technical assistance.

MBDA’s Capital Readiness Program incubators and accelerators have already helped thousands of eager entrepreneurs jumpstart their businesses and raise millions of dollars in capital. In just one year, Capital Readiness Program awardees have enrolled 6,326 entrepreneurs into 3- to 9-month long workshops or seminars, helping them to:

• raise $263 million in capital
• form 2,636 new businesses
• develop 1,726 business pitches, and
• Creates a council to advise the Under Secretary on supporting MBEs; and
• host 2,486 networking events

• First convening of Capital Readiness Program awardees
  • On May 8, 2024, MBDA hosted 43 CRP awardees from across the nation for its first implementation meeting at the U.S. Department of Commerce. The two-day program convened awardee administrators and directors for an opportunity to meet Department of Commerce and MBDA staff, network within their cohort, and receive valuable program information.
• Commemorating year one of the Capital Readiness Program at the Nasdaq Tower
  • On November 21, 2024, Deputy Under Secretary Morrissette, Capital Readiness Program grantees, and other stakeholders gathered in New York City for an exhibition on the Nasdaq Tower in Times Square to celebrate the Capital Readiness Program’s outstanding achievements after one year.

Expanding Public And Private Partnerships

MBDA’s strength comes from its network of collaborators and stakeholders throughout the country who work with the Agency to deliver resources for MBEs and bolster the nation’s economic growth and national security. MBDA’s network spans across America and continues to grow every year. One way the Agency expands its reach is through Memorandums of Understanding (MOUs), which are collaborations with both public and private sector entities to help leverage organizational strengths and reach in order to provide the public with enhanced knowledge and awareness of available programs, resources, networks, technical assistance, and federal procurement opportunities.

In 2024, MBDA established MOUs with the following Federal Agencies, and other public and private sector organizations:

• 100 Black Men of America, INC.
• Airport Minority Advisory Council (AMAC)
• Federation of the Binational Chambers of Commerce (FEBICHAM)
• Greater Orlando Aviation Authority
• Heartland Black Chamber of Commerce
• Hispanic Chamber of Commerce of Greater Kansas City
• International Trade Administration (ITA)
• National Alliance for Black Businesses
• National Black Chamber Commerce
• Port of Seattle
• Small Business Majority
• The Black Women's Agenda
• The Council of Negro Women, INC.
• The National Panhellenic Council (Divine Nine Fraternities and Sororities), which are:
  • Alpha Phi Alpha Fraternity, Incorporated
  • Alpha Kappa Alpha Sorority, Incorporated
  • Kappa Alpha Psi Fraternity, Incorporated
  • Omega Psi Phi Fraternity, Incorporated
  • Delta Sigma Theta Sorority, Incorporated
  • Sigma Gamma Rho Sorority, Incorporated
  • Zeta Phi Beta Sorority, Incorporated
  • Iota Phi Theta Fraternity, Incorporated
• The Links, Inc.
• The National Coalition of 100 Black Women, Inc.
• U.S. Black Chambers, Inc.
• U.S. Department of Defense
• Urban Strategies Inc.

Deputy Under Secretary Morrissette Travels Across America

MBDA’s work is fueled by the communities we serve, which is why this year, Deputy Under Secretary Morrissette traveled across the country to meet with entrepreneurs, industry leaders, and stakeholders. It was clear that people were excited by the historic investment and capital opportunities present for  American businesses. But more importantly, our communities are more motivated than ever to break down more barriers and open more doors for MBEs because the path to prosperity and national security is through an equitable, strong economy.

• Economic Opportunity Tour
  • In April, Deputy Under Secretary Morrissette traveled to Atlanta to kick off the first stop of Vice President Kamala Harris’ nationwide Economic Opportunity Tour with a panel discussion at the Georgia International Convention Center. The discussion focused on specific programs and initiatives key agencies have forged to uplift underrepresented communities through economic opportunities.
  • Participants included U.S. Department of Treasury Counselor for Racial Equity Janis Bowdler, and U.S. Department of Transportation Under Secretary of Transportation for Policy Christopher Coes. Chair of the Congressional Black Caucus Congressman Steven Horsford (D-NV-04), moderated the panel.
• Trade Mission to Dominican Republic
  • In November, MBDA collaborated with the International Trade Administration (ITA) for the GDEI Trade Mission to the Caribbean Region which included the Opportunities for Minority-Led Businesses in the Caribbean Conference. Joann J. Hill, Director, Office of Customer Experience traveled to the Dominican Republic to participate in the Empowering Minority-Owned Small Businesses through Global Trade panel discussion, which encouraged minority business leaders and supporting organizations to discuss resources available in the region and share success stories.
• Investing in Our Communities: Access to Capital, Contracts and Resources for MBEs Panels
  • Throughout the year, Deputy Under Secretary Morrissette visited multiple U.S. cities as part of MBDA’s Investing in Our Communities Tour, including Detroit, Michigan; Miami, Florida; Houston, Texas; New Orleans, Louisiana; St. Louis, Missouri; Kansas City, Missouri; Santa Clara, California; San Antonio, Texas; Cleveland, Ohio; and New York, New York. In each city, MBDA hosted meetings and insightful panel discussions with local business leaders and senior government officials to explore ideas on Investing in Our Communities, illuminating contracts and resources to help local MBEs grow and scale. These discussions centered on five key issues, including: 1) contract opportunities and resources available through the federal government, 2) investing in our business communities, 3) access to capital, 4) access to contracts, and 5) U.S. global competitiveness.

• Department of Defense Small Business Training Week
  • In May, Deputy Under Secretary Eric Morrissette traveled to Chicago to participate in the Department of Defense (DoD), Office of Small Business Programs’ Small Business Training Week. While there, Mr. Morrissette engaged in several meetings and panel discussions to explore opportunities for working collaboratively to encourage greater participation of MBEs in the defense supply chain. In a fireside chat with Mr. Farooq Mitha, Director, DoD, Office of Small Business Programs, Mr. Morrissette discussed how MBDA and DoD can work together to create a sustainable model that identifies diverse stakeholders to address challenges and opportunities for engaging and developing MBEs in defense-related high-growth industries. They also discussed how making contracts available to a diverse pool of businesses is crucial to DOD’s success in helping to build up the country’s national defense.
  • In November, DoD Office of Small Business Programs and MBDA formally signed a Memorandum of Understanding to work together to expand opportunities for MBEs in the defense contracting space.

2024 MBDA Minority Enterprise Development Week

In October, MBDA hosted the 41st Annual National Minority Enterprise Development (MED) Week in coordination with the National Minority Supplier Development Council’s (NMSDC) Annual Conference & Exchange, in Atlanta, Georgia. MED Week featured several seminars and workshops on expanding access to capital, contracts, and global networks. The Investing in America seminar illustrated the historic investments made by the Biden-Harris Administration and featured Deputy Secretary Don Graves, President and Chair of the Export Import Bank of the United States Reta Jo Lewis, Deputy Administrator for the U.S. Small Business Administration Dilawar Syed, and was moderated by Senior Advisor to the President and Director of Public Engagement Stephen K. Benjamin.

The conference culminated with the 2024 MED Week Awards Ceremony that honored some of the Nation’s most accomplished MBE entrepreneurs, community leaders, and stakeholders.

View 2024 MED Week Awardee Bios

Convenings To Engage The MBE Ecosystem

• MBDA Minority Business Enterprise Advisory Council
  • 2024 marked the formation of the MBDA Minority Business Enterprise Advisory Council. As stated in the Minority Business Development Act of 2021, this council’s purpose is to advise and assist MBDA in their mission to promote the growth of MBEs.
  • The Council is composed of 19 members: nine private sector members and one representative from each of ten Federal agencies that support business formation, labor development, monetary policy, national security, energy, agriculture, transportation, and housing.
  • This year, the council convened their first two meetings, delivering their first set of recommendations to Deputy Under Secretary Morrissette related to four key pillars: access to capital, access to contracts, global markets, and data repository.

• Asian American Native Hawaiian/Pacific Islander (AANHPI) Business Summit
  • In May, MBDA celebrated Asian American, Native Hawaiian, and Pacific Islander (AANHPI) Heritage Month by co-hosting the National AANHPI Business Summit. MBDA collaborated with the National Asian/Pacific Islander American Chamber of Commerce & Entrepreneurship (National ACE) to bring together AANHPI business owners and stakeholders to discuss the AANHPI business community and how the Biden-Harris Administration is opening opportunities for their businesses and for all MBEs.

• Access to Capital Summit
  • In July, MBDA hosted its second annual Access to Capital Summit to foster a collaborative environment where experts shared insights, perspectives, and strategies to help address disparities and improve lending and investments for MBEs. The Access to Capital Summit: Equity in Action convened national banks, investors, trade associations, and regulators to discuss trends that affect capital formation for MBEs. This summit is mandated by the Minority Business Development Act of 2021.

• Procurement Summit
  • In November, MBDA hosted its second annual Federal Procurement Summit at the White House to foster collaboration among federal agencies, MBEs, trade associations, and advocacy organizations to advance equity in federal procurement in order to strengthen the economy and bolster the country’s national security. This year’s Summit hosted three panels:
    • Equity in Action: Federal Agency Priorities and Lessons Learned
    • Private Sector Partners in Progress: What’s Working, What Needs to Change
    • Breaking Barriers, Building Success: Challenges and Triumphs in Federal Procurement.

• Expanding Access to Capital in Indian Country --- A Virtual Fireside Chat
  • During Native American Heritage Month, MBDA hosted a virtual fireside chat featuring the women-led tribal venture capital firm, Endemic Venture Capital. The discussion opened with special guest Councilman and Tribal Leader of Pueblo of Zia in New Mexico. Managing General Partner of Endemic Venture Capital, Mahrinah Shije, visited the U.S. Department of Commerce in Washington, D.C. for a discussion on how investing in tribal digital economies helps fuel U.S. innovation.
    

Leading The Way In Cutting-edge MBE Data And Research

The Minority Business Development Act of 2021 mandates MBDA to collect and analyze data, conduct research and studies, perform program evaluations, and establish and maintain an Information Clearinghouse.

MBDA’s Office of Data, Research, and Evaluation (ODRE) developed data, studies, reports, and other publications for and about MBEs to foster better understanding of emerging trends, identify opportunities for innovation, and adapt to changing market conditions. ODRE’s research and analytical products offered essential data and insights to inform strategic decision-making.

Data and Research Information Clearinghouse: THE MBDA RESEARCH LIBRARY

• MBDA launched components of its information clearinghouse, the MBDA Research Library, and the MBDA Data Warehouse that are designed to collect and disseminate demographic, economic, financial, managerial, and technical data relating to MBEs.  In addition to publishing MBDA original and commissioned studies and reports, the MBDA Research Library will host other relevant studies and reports from government entities and other organizations.
• Published Reports: MBDA also developed two congressionally mandated studies regarding MBEs in the U.S. supply chain and their utilization of alternative financing solutions.
  • FinTech and Alternative Financing for Minority Business Enterprises focuses on a burgeoning sector of capital access that is currently considered an alternative source of capital, commonly referred to as Financial Technology (FinTech). The report reviews many forms of alternative sources of capital, highlights their unique advantages and disadvantages, and makes recommendations for new approaches to supervision and regulation.
  • Ways in Which Minority Business Enterprises (MBEs) Can Meet Gaps in the U.S. Supply Chain, examines the most current snapshot of the MBE supplier landscape, focusing specifically on MBE ownership and management; the barriers present in supply chains for MBE participation; and the ways in which policy makers, technical assistance providers, and large corporations can utilize MBEs to advance the U.S. supply chain.

MBDA LAUNCHES LANGUAGE TRANSLATION ON WEBSITE

• MBDA introduced a new language translation tool on its website to provide content in the five most commonly spoken languages in the United States in order to increase accessibility of information to diverse audiences in need of MBDA support and resources. Translation is currently available in Spanish with additional languages becoming available into the new year (i.e., French, Chinese, Tagalog, and Vietnamese).

The Minority Business Development Agency had a busy 2024 delivering resources and services to the country’s minority business enterprises. Thanks to the tireless work of MBDA’s staff and our national network of programs and stakeholders, MBDA is a step closer towards its goal of closing the $7.1 trillion opportunity gap and creating an economy that works for all businesses, advances American competitiveness, and reinforces our economic and national security.