The City of Los Angeles has joined Orlando, Nashville and Baltimore in formally including businesses owned by members of the lesbian, gay, bisexual, transgender and queer community in the contract process. It's a move involving billions of dollars.
The policy approved by the city not only gives LGBTQ businesses opportunities in contracting and procurement, but also for capacity building and educational programs from small businesses. And L.A. is now the nation's largest municipality, in terms of both population and economy, to do so. According to CNBC, Chicago and New York City may be next, with policies similar to L.A.'s in the works.
“California has a legacy of leadership in promoting inclusivity at every level of public life,” said National LGBT Chamber of Commerce co-founder & president Justin Nelson in a statement. “Now, history has been made here in Los Angeles, and this victory for inclusivity has once again proved our core values that ‘diversity is good for business’ and that ‘if you can buy it, a certified LGBT-owned business can supply it.’”
Similar contracts in L.A. have amounted to as much as $8 billion across about 40 departments, according to reports cited by CNBC. Nationally, LGBTQ-owned businesses contribute $1.7 trillion to the U.S. economy, create more than 33,000 jobs, and generate an average revenue of $2,475,642. That's according to the NGLCC.
“For LGBT citizens of L.A., this inclusive policy provides fair and equal access to contracting opportunities and economic development programs that drive innovation, create jobs, and promote economic growth throughout the region,” said Nelson.
These kinds of opportunities are historically only offered by federal, state and local governments to minority-owned and women-owned businesses. The NGLCC and its local affiliate chamber partner, the Los Angeles Gay & Lesbian Chamber of Commerce, advocated for the policy, which follows Long Beach as the second California city to enact an LGBTQ-inclusive contract process.
“The important point is that we get to open doors and increased opportunity,” Nelson said.
Among the other cities that have already recognized LGBTQ-owned businesses through administrative or executive orders are Seattle; Columbus, Ohio; Philadelphia; Newark, Jersey City and Hoboken, New Jersey. Massachusetts and Pennsylvania followed California by including certified LGBTQ-owned businesses in requiring contracts awarded by the regulated utility industry in their states to encourage and recruit businesses owned by minorities, women disabled veterans and now those identifying as LGBTQ.
“The beautiful thing here is these announcements are a catalyst for businesses in the community to stand up, be recognized and get certified,” said Nelson. “And the benefit of that is not only to potential businesses, but it opens them up to a vast array of corporations across the country that are looking to do business with firms, not despite the fact that they’re LGBT, but because they’re LGBT.”
And, that is good for business, say advocates.
“Adding more diverse suppliers, including LGBT business owners, makes the supply chain more competitive. And when it’s more competitive, bid prices come down and that means more money left over at the end of the year to get reinvested at the schools, roads and fire departments and back into all the minority communities that are served by that city or state,” the NGLCC’s senior vice president Jonathan Lovitz said.
Lovitz noted that some will no doubt ask, why does anyone need to know what orientation or gender identity a business owner is?
“The reality is, if you’re spending time worrying about losing your contract or not being able to bid because you’re LGBT, you’re not focusing on delivering a quality product at a competitive price,” said Lovitz. "We’re not just a social squeaky wheel. We are a vibrant part of the small business engine that makes the U.S. economy run, and that’s good for everybody.”
