In recent months, the state has taken a more proactive approach to closing the gap for marginalized businesses.
And now a new Ohio law will make it easier for them to get access to contracts and other resources.
On March 2, Governor Mike Devine signed Senate Bill 105 into law, which calls for state-level political subdivisions of minority business enterprises (MBEs), women-owned business enterprises (WBEs) and veteran-friendly business enterprises (VBEs). Recognize certificates. The bill was sponsored by Sen. Vernon Sykes, D-Akron and Sen. Kirk Schuring, R-Canton.
Businesses in Ohio can apply to become certified for free through the Ohio Department of Development. Before the law, they had to complete more time-consuming applications to get certified in other jurisdictions in the state where they planned to do business.
Ohio Secretary of State Frank Larose advocated for the bill and expressed support when it was passed in the Ohio House of Representatives in January.
"Thanks to bipartisan leadership in the legislature, our bill to fight bureaucratic red tape and streamline the certification process for minority, women and veteran-owned businesses passed today," LaRose tweeted. "This is a big win for Ohio entrepreneurs!"
Thanks to bipartisan leadership in the legislature, our bill to fight bureaucratic red tape and streamline the certification process for minority, women and veteran-owned businesses passed today. This is a big win for Ohio entrepreneurs!
— Frank LaRose 🇺🇸🇺🇦 (@FrankLaRose) January 27, 2022
Read more: https://t.co/LSHuUHqmb5
Steve Stivers, president and CEO of the Ohio Chamber of Commerce, also praised the bill.
"We are delighted to see Gov. Devin sign Senate Bill 105 and proud to support it through the legislative process," he said in a statement. "(It) will eliminate unnecessary burden."
Lydia Mihalik, director of the Ohio Department of Development, said it's important to encourage businesses to go after various contracts in different parts of the state without the "cumbersome" process.
It also mentioned that the department has significantly reduced the number of documents required in its certification process.
"What we're doing is really trying and leading the way in terms of empowering Ohio's minority- and women-owned businesses to succeed," she said. "And for us to stay proactive and fully unlock that potential, the process has to be business-friendly."
Business owners and consultants say the law will be beneficial.
"From a process standpoint, I think it's great," said Theresa Harris, 62, of Powell, who is president and founder of TMH Solutions, a management, information and technology consulting organization. She is also the incoming president of the Columbus chapter of the National Association of Women Business Owners (NAWBO).
"It builds our ability to do business faster. I do marketing in many counties and cities, and a lot of them require a lot of the same information. So, it makes our lives easier."
Through her work at Aventi Enterprises, Diona Barnett has assisted entrepreneurs with the certification process.
"It takes a lot of time to do those applications," said Barnett, who is the company's CEO and managing advisor. "Doing the same process over and over again - it's discouraging. I believe it will open up more access and more opportunities. I would like to see what the municipalities plan to do with implementing this."
Barriers to the certification process are particularly damaging to women of color, who are grappling with systemic issues, running their businesses with few employees, and performing family-care duties. And they are often pursuing both MBE and WBE certification.
Keena Smith, said, “Colorful business owners from Ohio, who our research shows are under-capitalized and earned an average of $50,000 or less in annual revenue even before COVID, are costing valuable money and having to navigate multiple certification processes. are adversely affected by spending time in the Founder and CEO of the Women's Center for Economic Opportunity. "This law breaks down that barrier and makes the opportunity for access more equitable."
Historically, both women-owned and minority-owned businesses have been excluded from public and private contracts. Certification is just one step that the state governments have taken to make it more inclusive.
And for many entrepreneurs, business development resources, access to capital, and networking opportunities with other women and people of color have been invaluable.
"Certification can be time-consuming, but, at the end of the day, I'm a lawyer," Smith said. "It's definitely a foot in the door for lowering barriers to entry. And it's also a connection-builder. So, for women of color and African American women, as they want to grow their businesses." and want to gain additional contracting opportunities, being able to move to those certified circles can make a big difference in being accessible to them.