California, a state known for its diverse and thriving small-business community. However many of these businesses face significant barriers when it comes to accessing government contracts. Assembly Bill 2019, or AB 2019, aims to change that by creating a mechanism for state agencies to prioritize small and diverse businesses in their contracting processes.

In a media briefing on November 16, hosted by Ethnic Media Services, representatives from the California Office of Small Business and the Mosby Task Force discussed why AB 2019 is so crucial and what they are doing to support small businesses.

Speakers

  • Danetta Jackson, Statewide Diversity Program Manager, California Department of General Services
  • Tara Lynn Gray, Director, Office of the Small Business Advocate, California Governor’s Office of Business and Economic Development

One of the key goals of AB 2019 is to increase the number of state contracts awarded to small businesses. As Danetta Williams explained, “we purchase almost everything – goods, services, IT goods and services, construction, public works – and we have a goal to contract 25% of those annual contracting dollars with certified small businesses and 3% with disabled spectrum businesses.”

However, achieving this goal requires a concerted effort from state agencies to prioritize small businesses in their contracting processes. That’s where AB 2019 comes in. As Williams explained, “AB 2019 creates a mechanism through which to do that. And so my department is responsible for doing an annual reporting on AB 2019 program implementation and success. We are also responsible for the creation of the economic equity first action plans that the liaisons at each of the agencies across the state apparatus that are required to consider their influence on an impact on small business.”

In other words, AB 2019 requires state agencies to consider the impact of their contracting decisions on small businesses and to take steps to prioritize these businesses in their procurement processes. This includes setting goals for contracting with small and diverse businesses, as well as creating action plans to ensure that these goals are met.

The Mosby Task Force, a group of business leaders and advocates for minority-owned businesses, is a key supporter in California. Williams explained that they are “a group of business leaders that have come together to help us think through how we can better support small businesses, particularly small businesses that are owned by people of color.”

One of the key ways that the Mosby Task Force is supporting small businesses is by conducting a disparity study. Tara Lynn Gray explained that they “published that report just a few months ago and go to our website, Calosba.ca.gov, navigate to our publications page and you can see both an executive summary and the full report which is more than a hundred pages detailing the state of diverse businesses. We did that so that we would have a baseline measurement for the implementation of AB 2019 because my partner over there, Danetta, is getting ready to do a disparity study and we wanted to have some traction, some numbers, and some framing of diverse businesses so that when genetic comes out with her report, there will be even greater context of the environment, the size and the nature of California’s small and diverse businesses.”

In other words, the disparity study will provide valuable data on the state of small and diverse businesses in California, which will help inform the implementation of AB 2019 and other efforts to support these businesses.

The task force also is working to provide resources and support to small businesses. As Williams explains they are striving to get their assistance out, “particularly small businesses that are owned by people of color. So, what came of that? Resources such as technical assistance, mentorship, and help to “navigate the complexities of doing business with the state.”

AB 2019 and the Mosby Task Force represent a step forward to support the slew of small and diverse businesses in California. As Williams noted, “We’re really excited about AB 2019 because it really kind of creates a platform on which we can build our services and really add for small businesses.” Prioritizing small businesses in state contracting processes and providing resources and support to these businesses are just a few things California is working on to create a more equitable and thriving business community.