Washington, the city’s first black mayor, in turn showed his gratitude. In 1985, he established a goal to award at least 25% of the annual dollar value of all city contracts to qualified minority business enterprises (MBEs). The City of Chicago’s minority business program got its footing from his administration, says Shelia Hill Morgan, president of the Chicago Supplier Development Council, which speaks out on behalf of small- and medium-sized minority businesses, and pushes to raise the bar for participation and access in contracting. When it came to doing business with the city, especially when it came to bond offerings, Washington was very explicit about the inclusion of minority firms, explains Mellody Hobson, president of Ariel Investments.
Ready and Able
That inclination for business leaders to collaborate with politicians became the foundation of organizations such as the Alliance of Business Leaders & Entrepreneurs (ABLE), says Quintin E. Primo III, chairman and CEO of Capri Capital Partners L.L.C.
It also explains why Chicago is home to a cottage industry of black-owned financial service giants such as The Williams Capital Group L.P. (No. 1 on the BE Investment Banks list with $10.87 billion in lead issues), Ariel Investments, Capri Capital Partners, and Holland Capital Management L.L.C. (No. 7, 9, and 11 on the BE Asset Managers list with $4.38 billion, $3.60 billion, and $2.71 billion in assets under management, respectively).
President Barack Obama also sought the resources of black business owners in Chicago. “Barack was surrounded by … black-owned businesses in the city. We embraced him and supported him, and our support was critical for him to move from U.S. state senator to the presidency of the United States,†says Primo, who met Obama nearly 12 years ago, while exercising at the East Bank Club.
Hill Morgan states, “I think the political activism of black people in Chicago–the fact that they advocate on their own behalf for growth and opportunity–all of those things matter and are a part of our success.â€
Political affiliations alone can’t sustain a business or help it grow. “At the end of the day, in order to compete with the larger firms you have to think and behave institutionally,â€Â says Monica Walker, CEO and chief investment officer of equity at Holland Capital in Chicago.
Procurement Challenges
While the Chicago Minority Supplier Development Council (MSDC) helped MBEs with $300 million in procurement and financial transactions last year and worked with more than 100 businesses, contracting opportunities remain a challenge in the Second City. Since 1991, the city has awarded more than $9.5 billion in city contracts to M/WBEs, or an average of 35% of the total contracts awarded. By 2011, 27% of both construction and non-construction contracts went to minority enterprises, according to Jamie Rhee, the City of Chicago’s chief procurement officer.
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