Mayor Andy Berke signed an executive order on Monday establishing a community coalition to identify the challenges faced and propose solutions to strengthen minority-owned businesses in Chattanooga. This task force will pull together a group of businesses owners, community leaders, and economic development experts to develop an action plan and provide recommendations directly to Mayor Berke.
On Wednesday, Feb.
24, Mayor Berke met with over 40 business owners during an African-American business owners breakfast hosted by the mayor’s Office of Multicultural Affairs (OMA). During the breakfast, business owners heard about the resources provided by the City of Chattanooga, discussed ways to grow their businesses, and described issues they face.
“There is no doubt that the city and the community can do more to help strengthen and grow our minority-owned businesses,” said Mayor Berke. “Through this order, we will put the structure in place, get the right people to the table, and find the solutions that will help Chattanooga’s minority businesses compete in the 21st century economy.”
The Berke administration has made the success of diverse businesses a priority especially as it pertains to increasing the number of contracts awarded to minority-owned businesses. Prior to April of 2013, the city’s purchase and contract rate for minority-owned businesses fluctuated between one and two percent. Through OMA’s Supplier Diversity program, the City of Chattanooga now sustains an annual rate of 13.5 percent.
“While the city will continue to sustain and improve our engagement with minority-owned businesses, we want all businesses -- whether they are doing business with the city or not -- to have access to opportunity,” said Mayor Berke. “The city and the community have a role to play in strengthening our minority-owned businesses, as their success is directly linked to the success of Chattanooga as a whole.”
Through his executive order, Mayor Berke will appoint members to the Task Force and charge the Task Force with providing recommendations no later than one year from its first meeting.
“This is a welcome announcement,” said Linda Murray Bullard, owner of LSMB Business Solutions, a local business and personal development consulting firm. “We know there are missed opportunities for African-American and other diverse business owners throughout the city. By starting a candid conversation about the topic, followed up with an action plan, we can start to see some movement on this important issue.”
Mayor Berke indicated he would name task force members in the next week, with an initial meeting before the end of March.
Here is the executive order:
WHEREAS, the City wants to ensure all citizens regardless of their race, gender, or religion have access to resources that can improve their businesses and create economic opportunity; and
WHEREAS, the City understands and recognizes that African-American, Hispanic/Latino, and other minority-owned businesses have been systematically denied the privileges that allow for business and wealth creation; and
WHEREAS, research shows that African-American, Hispanic/Latino, and other minority-owned businesses have less access to capital and rely more heavily on personal wealth, despite having significantly less personal wealth per family than white business owners. In addition, while women have recently seen an increase in access to credit, they have traditionally suffered from similar deficits in accessing capital; and
WHEREAS, African-American, Hispanic/Latino, and other minority business owners are more likely to be turned down for a loan even if they have a credit history and score equal to their white counterparts; and
WHEREAS, research shows that businesses owned and operated by minorities are more likely to employ people from diverse backgrounds and subcontract with other diverse firms, creating a leadership pipeline and increasing the economic potential for the entire minority community; and
WHEREAS, the City has worked to increase the percentage of government contracts that are awarded to minority businesses, but it wi ll require local government, private sector, public sector, and stakeholder organizations working in concert to promote and support the minority business community; and
WHEREAS, the City acknowledges that many of our minority-owned businesses lack the necessary tools and support from the City and community to build a new business and/or strengthen an existing business that can compete in the 21st century economy; and
WHEREAS, the City is committed to raising awareness about the importance of having a diverse and thriving business community and harnessing the power of our existing businesses to grow others.
NOW, THEREFORE,
IT IS ORDERED, That a Task Force to Strengthen Minority-Owned Businesses ("Task Force") be established to provide a more direct focus on and attention to identifying the local issues and challenges for local minority-owned businesses in doing business throughout our city;
IT IS FURTHER ORDERED, That the members of the Task Force shall search out new ideas as well as best practices from other cities and communities, and propose viable solutions to address any identified barriers to strengthening Chattanooga's minority-owned businesses;
IT IS FURTHER ORDERED That the Task Force shall be appointed by the Mayor and shall meet as often as necessary to complete its work and deliver its findings and recommendations no later than one year from its first meeting;
IT IS FURTHER ORDERED, That the Task Force shall have meetings, appoint committees, and guide constructive debate in a civil manner towards consensus as well as find concrete ways to engage the public at large throughout the process;
IT IS FURTHER ORDERED That the Task Force shall make a recommendation to the Mayor regarding how the Task Force should be organized following its first year of work.
IN WITNESS WHEREOF, I have executed this Executive Order No. 2016-01 this the 7th day of March, 2016.