Empowering Small Businesses Fuels Innovation and Resilience

For general contractors, fostering partnerships with diverse suppliers not only boosts local economies and creates equitable opportunities but also strengthens supply chains and encourages innovation.

In such relationships, supplier diversity is a strategic advantage and is often a regulatory necessity for the prime company. For small, local, Minority and Women-owned Business Enterprises (MWBEs), entering this arena can be both an exciting opportunity and a daunting challenge, as they navigate the complexities of scaling up to meet more considerable contract demands.

Today is Day 3 of Construction Inclusion Week 2024, an industry-wide effort to celebrate and amplify awareness of diversity, equity, and inclusion (DEI) and to spearhead change. 澳门足彩app is proud to sponsor Construction Inclusion Week at the Ambassador level and to participate by highlighting each day’s theme. Today’s theme is Supplier Diversity.

Construction ranks No. 1 among industries with 9% of its spending going to diverse suppliers, according to the 2023 Supplier Diversity Benchmarking Report. At 澳门足彩app, “Expanding Diversity and Inclusion” is one of six pillars of 澳门足彩app 2025, the company’s roadmap for responsible growth, and supplier diversity is a key element of that mission.

Business Diversity Administrator Anita McGoogin and her team are responsible for connecting with and involving MWBEs in projects across the country. Often, that involves providing small and minority-owned businesses with the tools they need to succeed since many face difficulty scaling to meet large contract requirements.

"My team and I work to connect MWBEs and other small businesses with contract opportunities, " McGoogin said. "We aim to exceed the target percentages set, but it's a challenge. Many small businesses lack the capacity or experience needed to take on larger contracts, so our role is to help make these opportunities more attainable for them."

Making Success Attainable

By focusing on capacity building and infrastructure development, 澳门足彩app provides hands-on support to ensure these businesses are eligible to compete and positioned for long-term success. Here are several ways McGoogin and her team help small businesses win contracts:

• Prequalify Small Businesses Early: Engaging small businesses before the formal bidding process allows them time to understand requirements and prepare. Providing technical guidance or financial advice during prequalification helps them get contract-ready, especially in industries where detailed compliance is critical. This early engagement ensures that small businesses have a better chance to compete when bids open.
   
• Provide Training and Certification Resources: Many small businesses lack the formal qualifications needed for larger contracts. Offering training programs that help them gain certifications, such as diversity or compliance certifications, enables them to satisfy the procurement standards placed on the prime contractor.
   
• Break Larger Contracts into Smaller Lots: Dividing large contracts into smaller, more manageable portions allows small businesses to bid in a way that aligns with their capabilities. This is ideal for companies seeking to diversify their supplier base without overwhelming smaller partners. By making contracts more accessible, prime companies enable small businesses to take on large-scale projects and gain valuable experience.
   
• Encourage Joint Ventures and Collaboration: Small businesses are encouraged to explore joint ventures or strategic partnerships to successfully compete for larger contracts. By teaming with other small businesses, they can share resources, technology, and skilled labor. These collaborations help build past performance on larger projects, strengthen expertise, and position small businesses for future growth and larger-scale contract opportunities.
   

Even with the general contractor supplying resources and support, smaller businesses need help scaling and growing their portfolio.
They can struggle to access the capital necessary for equipment, labor, and materials, limiting their ability to bid on larger projects, or they may lack the administrative infrastructure to manage bid preparation, prequalification and compliance with safety standards and insurance requirements. Keeping a stable workforce and proving their capacity for large-scale projects are also frequent hurdles.

Fostering Growth

Teri Williams, 澳门足彩app’s Manager of Business Diversity, plays a pivotal role in guiding small businesses, particularly minority-owned firms, through the complexities of large-scale construction contracts. From her experience, Williams has seen where many of these businesses often struggle.

"Small businesses frequently focus on winning contracts, but they don’t always consider the infrastructure needed to deliver," Williams said. “It’s not just about landing the job. They need strong financial backing, a capable workforce, and, just as importantly, a deep understanding of the administrative side. Back-office operations are crucial for success of small businesses as they provide the foundation that supports day-to-day operations and long-term growth.

"I've seen businesses buckle under the pressure because they weren’t ready for the financial strain of paying workers and suppliers before receiving payment from the client,” she said. "They need to be as prepared to manage cash flow as they are to perform the actual work."

With her guidance, these businesses learn to build the administrative infrastructure and financial literacy they need to fulfill their contracts. She listed numerous practical solutions:

• Build Administrative and Financial Systems: Small businesses must develop solid administrative processes for payroll and accounting and ensure that administrative functions are handled efficiently, especially when dealing with the insurance and bonding requirements of their clients. Proper bookkeeping, budgeting, financial management, and managing cash-flow are crucial for success. A well-managed back office helps small businesses maintain financial health and make informed decisions for growth.
   
• Develop a Strategic Growth Plan: Small firms need to scale their operations gradually to ensure that they have the resources to handle larger projects before moving to win bids. A strategic plan should cover financial stability, workforce development and capacity building.
   
• Leverage Available Resources and Mentorship: Take advantage of mentorship programs and resources from organizations like the Small Business Administration (SBA) and supplier diversity programs. These offer education, networking and financial support that are vital for growth.
   
• Invest in Workforce Development: A skilled workforce is essential. Investing in training and certifications ensures that companies have the talent needed for contract demands, making them more attractive to larger firms.
   
• Strengthen Relationships with Larger Firms: Building solid partnerships with general contractors helps small businesses gain credibility and access larger projects. These relationships provide guidance and additional resources, helping smaller firms grow sustainably.
   

Supplier diversity is essential for prime and small companies, and success depends on both sides approaching these partnerships thoughtfully.

"It’s not enough for prime companies to simply meet their diversity quotas,” McGoogin said. “They need to ensure that the businesses they bring on are truly prepared to deliver and grow. On the other hand, small businesses have to be intentional about how they scale. Rushing into large contracts without the right foundation can do more harm than good."

Driven by our core values of Team, Excellence, Service and Trust, 澳门足彩app is committed to expanding diversity and inclusion as it procures supplies and services. Contact us to become one of our trusted partners as we Create Things That Matter.