A published report by the New York City Comptroller’s Office reflects that with all the minority- and women-owned business enterprises (MWBE) in the city — 64% to be exact — only 20% of certified firms are winning contracts with the city's government. Of the $19.3 billion in contracts awarded to businesses in fiscal year 2018, only $1 billion were awarded to MWBEs.
The purpose of certifying MWBEs with government agencies is to increase access to opportunities. But as the numbers show, there's still a long way to go. In New York City, Mayor Bill de Blasio has set a goal to award $20 billion in government contracts to MWBEs by 2025. The federal government has similar goals, seeking to award 5% of all contracts to women-owned small businesses (WOSB). But there's a struggle to reach these goals year after year.
Early in my career, my firm struggled with winning contracts as well. Over the past three decades, I have invested a significant amount of resources in personal development and observing the habits and behaviors of successful entrepreneurs. Mindset and soft skills are often the last things we think about when looking at the success rates of minorities and women-owned firms, yet, in my opinion, they're often the secret sauce that defines which MWBEs are successful.
Here are some of the mindset secrets of MWBEs that I have observed:
1. They see minority certification programs for what they are. Simply put, programs that certify MWBEs are about creating access to opportunity, not a guarantee of work with the government. Each program is unique and may have different connotations depending on who is running it, the level of commitment of the agency/corporation and the availability of qualified MWBEs for performing the work.
Unfortunately, in many cases, certification programs can be a tool that many corporations and government agencies use to gain favor with MWBEs without any real action behind it. I've seen a number of instances in which certain organizations will spend a lot of money sponsoring events for MWBEs but are reluctant to give them access to the supply chain.
There are so many complexities surrounding MWBE certification and access to government contracts that it's important for entrepreneurs to stay focused on their mission to win them. It's so easy to get sidetracked and caught up with what's wrong with the program instead of focusing on what they can be doing. Successful MWBEs are focused on the opportunity and use the program to target their audience within government agencies and corporations. They also use certification programs to weed out companies that are not going to do business with them.
2. They speak up. Successful MWBEs don't expect any miracles with these MWBE programs. If they are not satisfied with outcomes, they address them head-on with the appropriate parties, whether that means connecting with elected officials, government agencies or corporations. They position themselves for success by ensuring they have adequate resources to successfully compete for contracts.
3. They're clear on their mission. Successful MWBEs know exactly who they are and what they do. In fact, highly successful MWBES have a clear vision of their mission and who they serve. They purposefully go after opportunities that are in alignment with their capacity as well as business goals and objectives.
4. They invest in themselves and their business. Successful enterprises understand the importance of investing in themselves, their companies and their staff. They are more likely to work with high-level coaches and trainers, and they participate in industry conferences and trade shows to keep them ahead of their competition. They also avail themselves to the latest technology, finding ways to increase performance and customer satisfaction while keeping costs down.
5. They have a positive attitude. Highly successful MWBEs have a positive attitude. Despite business challenges, they tend to see the glass as half full. They also know that a positive attitude generates positive energy, which often results in strong relationships.
6. They give back. When a highly successful MWBE reaches a new milestone, the first thing they want to do is share it. They look for ways to give back to their community and to other MWBEs.
7. They're productive. Successful MWBEs understand the importance of having a laser-sharp focus on intended outcomes. To that end, they have an action plan that is designed to produce results. They know what needs to be done and who is responsible for what. Highly productive MWBEs focus on doing what they are good at and delegating everything else.
8. They surround themselves with key individuals. Successful MWBEs understand the importance of surrounding themselves with the right people. They have a strong network of other highly successful and like-minded contacts who support them.
9. They're self-aware. Highly successful MWBEs understand their strengths and weaknesses. They are aware of their tendencies when it comes to certain habits and behaviors, and they don’t allow themselves to fall off track with ego-based mindset traps.
10. They're accountable: Highly successful MWBEs are accountable for themselves and their teams. They also hold associates, colleagues and employees accountable, sometimes even holding high-level masterminds/accountability groups.
As a seasoned entrepreneur and business coach, one of the most important things I have learned over time is that an MWBE leader's daily habits, behaviors and mindset determine whether or not they succeed or fail. Consider examining yours by taking a personality assessment and focusing on your strengths. If you are looking to take your business to the next level, examine any habits, behaviors or beliefs that could be standing in your own way of reaching your goals, and implement a different approach.
