Ensuring that minorities, women, and other disadvantaged groups have fair access to economic opportunity is a top priority for the Harris County Commissioners Court. Minority and women-owned businesses play a vital role in the local economy and are driving the growth of new business and jobs in Harris County. Advancing fair and inclusive economic policies to bolster their long-term success will help create wealth and jobs within the community.
Two years ago, Harris County Commissioners Court commissioned a disparity study to determine if minority- and women-owned businesses have access to government contracting and procurement. In other words, a disparity study reveals if there is a problem. Initial results revealed: there is a big problem.
“Although minorities and women make up a significant portion of our local economy as small business owners and entrepreneurs, they often face barriers that undermine their long-term ability to thrive and compete in the 21st century economy,” Commissioner Rodney Ellis said. “It is imperative that all people have a fair chance to contribute and succeed.”
Here are some troubling facts that the disparity study found:
- Only 9.1% of Harris County’s contracts are with minority or women-owned businesses. Only 0.5% of our contract dollars go to Black-owned businesses; 0.6% to Asian-owned firms; and 4.6% to Latinx-owned businesses. Those figures are not at all representative of the businesses who could and want to contract with Harris County.
- The study also found disparities in wages, business earnings, and business formation rates for minorities and women in all industry sectors in the County’s marketplace.
“To level the playing field, I asked the county to conduct the study because it was the critical step in establishing a minority- and women-owned business enterprise (MWBE) program,” Commissioner Ellis said. “The results were dismal. Only 9.1% of Harris County’s contracts are with MWBE. When disparities exist, a gender- or race-conscious approach is appropriate and allowable.”
A disparity study helps governments legally justify an MWBE program by ensuring the program meets a compelling governmental interest—in this case, remedying past discrimination in contracting and procurement—and is narrowly tailored to further that interest.
The Disparity Study is the first step. While the Harris County Commissioners Court will be opening their Office of Economic Equity and Opportunity later this year, contracting is not going to wait until its open, therefore, the work to start creating a Minority/Women-owned Business Enterprise (MWBE) program needs to begin right away.
“We must act quickly because MWBEs are critical to strengthening and diversifying our region’s economy and creating wealth and economic opportunity in our local communities where they are needed most,” Commissioner Ellis said.
