New York Ranks Tenth for Minority-Owned Businesses

News Summary

A report reveals that New York ranks tenth in the U.S. for minority-owned businesses, with over 109,000 total. Among them, 72,000 are Asian-owned and nearly 14,000 are Black-owned. The state shows a commitment to support these businesses through various initiatives, despite challenges in the MWBE certification process. This underscores the significance of minority entrepreneurs in New York’s economy.

New York City – According to a recent report from Baldwin Digital, New York ranks tenth in the United States for the number of minority-owned businesses. The report highlights that there are approximately 20.5 minority-owned businesses for every 1,000 non-white residents in the state, totaling over 109,000 minority-owned businesses contributing to local economies across various regions, including Buffalo and Binghamton.

Among these minority-owned businesses, more than 72,000 are Asian-owned and nearly 14,000 are Black-owned. This data underscores the significant presence and impact of minority entrepreneurs within New York’s diverse economic landscape.

While Wyoming holds the top position in the nation with over 34 minority-owned businesses per 1,000 minority residents, New York’s standing in the top ten demonstrates the resilience and entrepreneurial spirit of its inhabitants. Florida and California follow Wyoming, ranking second and third, respectively.

Support for Minority-Owned Businesses

The Minority and Woman-owned Business Enterprise (MWBE) program, initiated in 1993, plays a vital role in promoting minority-owned businesses by directing government contracts to underrepresented business owners. In 2024, New York Governor Kathy Hochul announced over $3 billion in contracts awarded to MWBE-certified firms, showcasing the state’s commitment to supporting these businesses.

Challenges in Certification

Despite the support, female business owners often encounter additional hurdles in the MWBE certification process, resulting in higher rates of application denials. A significant number of denied appeals for MWBE certification come from female business owners, whereas men who are minority owners lodge far fewer appeals. Reports of potential gender bias among some analysts in the Empire State Development’s review process have raised concerns over the integrity of the certification process. The agency is currently investigating these allegations while reaffirming its confidence in the system.

Since 2015, there has been increased scrutiny on applications from women business owners, particularly those with male partners. This increased vigilance complicates the already challenging process of securing the crucial MWBE certification, which is essential for accessing state contracts. The MWBE program has set a target for 30% of state contracts to go to MWBEs, a goal that has been met in recent years.

The Appeal Process

The appeal process for denied MWBE certifications can be lengthy and costly, often discouraging many applicants from pursuing their claims due to its complexities. This situation may further exacerbate the existing disparities faced by MWBEs, as a recently completed disparity study suggested ongoing discrimination against minority-owned businesses.

Future of the MWBE Program

The MWBE program is scheduled for re-authorization this year, but it may encounter legal challenges depending on upcoming federal diversity, equity, and inclusion initiatives. As discussions surrounding these initiatives unfold, the future of the MWBE program will be closely monitored by stakeholders across the state.

Overall, New York continues to demonstrate a robust landscape for minority-owned businesses, ranking in the top ten nationally and reaffirming the significance of diverse entrepreneurship in shaping its economic growth and community development.

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Additional Resources

• WBNF: New York Minority-Owned Businesses
• Times Union: Odds Stacked Against Women in MWBE Program
• WKTV: Utica Awards Grants to Minority and Women Owned Businesses
• U.S. Chamber: Small Business Grants and Programs
• Visit Rochester: Black-Owned Businesses in Rochester
• Wikipedia: Minority-owned Business
• Google Search: Minority Owned Businesses
• Google Scholar: Minority-Owned Businesses New York
• Encyclopedia Britannica: Minority-Owned Business
• Google News: Minority Owned Businesses NY