State Of Pennsylvania Increases Contracts To Black-Owned Businesses By 30%

Pennsylvania spent $136 million with Black-owned and Hispanic-owned businesses in 2022-23, a 30% increase from the $104 million reported the previous year.

More minority-owned businesses in Pennsylvania are receiving state contracting dollars. Of the nearly $700 million received under Gov. Josh Shapiro and Lt. Gov. Austin Davis for 2022-23, the state government spent $136 million with Black-owned and Hispanic-owned businesses. That is a 30% increase from the $104 million reported last year.

These figures, revealed in a news release, come months after Gov. Shapiro signed an executive order to create the Pennsylvania Advisory Council for Inclusive Procurement (PACIP). The 16-member council advises state agencies on ways to make state contracting opportunities more inclusive.

More funding for small and small diverse businesses helps ensure everyone can participate in our economy and build generational wealth — and it helps us secure a better product for Pennsylvanians.

It's not just the right thing to do, it's the smart thing to do. https://t.co/y7JVPNWVKy
— Governor Josh Shapiro (@GovernorShapiro) August 14, 2024

“Governor Shapiro and I recognize that small businesses and small, diverse businesses are the backbone of our economy and the beating heart of communities across the Commonwealth,” Lt. Gov. Austin Davis, who chairs PACIP, said in a statement. “When we took office, we pledged to increase and open up new doors of opportunities for these businesses to compete for — and win — state contracts.”

He adds, “I’m excited to see our efforts are already bearing fruit, but there is still much more work to be done as we work to expand economic opportunity and help Pennsylvania families build generational wealth.”

Steps To Make Procurement Process More Fair

Over the past year, the Shapiro-Davis administration has taken several steps to expand opportunities to improve the procurement process for small businesses in Pennsylvania. In addition to the executive order, the administration has launched an initiative to support Pennsylvania-based small and Black-owned businesses by purchasing products from them on Amazon Business.

The administration also created a Mentor-Protégé Program to help Black-owned small businesses compete for state contracting opportunities, reduced the time it takes for the Department of General Services—which manages most of the state’s contracts—to certify a small business and much more.

“These record-breaking investments in small businesses reflect the Shapiro-Davis Administration’s unwavering commitment to creating an inclusive economy. By empowering business owners of all backgrounds, we’re not only fostering economic growth but also ensuring that the benefits of prosperity are shared across every community in Pennsylvania,” said DGS Secretary Reggie McNeil.