Secretary of State at the Department of Commerce for Minority Business Development, Donald “Don” R. … [+]
As the first Secretary of State of the Department of Commerce for Minority Business Development, Donald “Don” R. Cravins, Jr. owned businesses across the country. The exalted role of the MBDA was mandated by provisions of the Bipartite infrastructure lawthat the US Department of Commerce provides new resources to level the playing field and better access to capitalcontracts and connections that minority businesses need to grow and contribute to the economy.
I recently had the opportunity to speak with Secretary of State Cravins about what he has been doing since taking office and his goals for the agency. Below you will find our review.
Rhett Buttle: Can you describe the mission of the Minority Business Development Agency (MBDA)?
Secretary of State Cravins: The MBDA’s mission is to promote the growth and global competitiveness of minority-owned businesses through the mobilization and advancement of public and private sector programs, policies and research.
MBDA plays a unique role in our government. We are the only federal agency dedicated solely to the growth and global competitiveness of minority businesses. For 54 years, a major way MBDA has carried out its mission is through its national network of 88 business centers and grant programs in 36 states and territories. Our national network is a resource for minority-owned businesses to receive technical assistance and business development services. If you are a minority entrepreneur, MBDA is your agency. Our job is to help you get your foot in the door.
In 1969, MBDA was established by executive order under President Nixon. An Executive Order is not a law. So for fifty-three years, MBDA existed as an employment agency with limited resources and influence. The existence of the Agency was always uncertain from year to year and from president to president.
However, in November 2021, President Biden and Republicans and Democrats in Congress changed that with the enactment of the Minority Business Development Act. For the first time in its history, MBDA is now a permanent Federal Agency. The law expands MBDA’s capacity and reach, and also increases our authority and influence to effect system change. It affirms MBDA’s role as a leader in the federal government, guiding policies and initiatives to break down barriers and create a more equitable economy for minority entrepreneurs.
Rhett Buttle: Last August you were confirmed as the Department of Commerce’s first Secretary of State for Minority Business Development? How does creating a Secretary of State with this focus enhance the Agency’s overall efforts?
Secretary of State Cravins: I am truly grateful to President Biden and Vice President Harris for being nominated to serve as the Agency’s first-ever undersecretary. My unanimous confirmation by the US Senate means two things. First, I think it indicates that both sides of the political aisle see the value of the MBDA. My confirmation also means that the MBDA finally has a permanent place at the table.
As part of our new mission under the Minority Business Development Act, MBDA’s role is to be a leading voice for minority businesses and entrepreneurs in the federal government. MBDA has been that voice since 1969, but now we have a megaphone. Now we are leading the conversation for minority entrepreneurs on equity, access to capital, access to contracts and networks. This is the influence we’ve been waiting for. And we make sure we don’t waste time turning that influence into policy and real change for those left behind.
Rhett Buttle: As we approach your first six months in office, the agency has delivered/announced successful initiatives, grant programs, and funding opportunities for minority business owners. What challenges do you see minority business owners facing when starting and maintaining their businesses?
Secretary of State Cravins: As you mentioned, MBDA has achieved a lot in recent months. Last year, we provided millions of dollars in grants to open six new MBDA Business Centers and seven new student entrepreneurship programs at Minority Serving Institutions across the country. We awarded 26 additional grants to our business centers to strengthen our procurement and contracting services and help minority-owned businesses participate in President Biden’s historic bipartisan infrastructure bill. In Fiscal Year 2022, MBDA helped minority-owned companies raise more than $1 billion in capital and more than $1.7 billion in contracts. That last point is particularly important to me, because we are directly helping minority-owned companies overcome their biggest challenge, which is access, and especially access to capital.
I’ve seen inequality in access play out all my life. I am a product of African American entrepreneurs. My parents have owned a business in southwest Louisiana for nearly four decades. I saw firsthand the unique challenges they faced as black small business owners: being denied loans from big banks, struggling to get in the room with investors, and relying on government programs that can’t bridge the gap.
Despite those inequalities, hard-working minority business owners continue to succeed, generating billions of dollars and creating millions of jobs for their communities and the nation’s economy. But to me, business success is about more than just starting or maintaining it, it’s about thriving. I want to see a day when the term “minority business” isn’t necessarily the same as “small business.”
MBDA’s mission is to help break down the barriers to success for businesses at every step of the entrepreneurial journey, from the moms and pops to the titans of the industry.
Rhett Buttle: MBDA recently announced a grant program to help minority-owned businesses with technical support and access to capital. How will this program help minority entrepreneurs?
Secretary of State Cravins: The goal of the Capital Readiness Program is simple: to give every American a fair chance to become a successful entrepreneur.
Think of the Capital Readiness Program as a national network of business incubators and accelerators, but specifically for minority and other underserved entrepreneurs. Business incubators and accelerators help entrepreneurs develop their businesses by guiding them through things like how to secure capital, how to jump-start their business, go public, build their workforce, enroll in government programs that help small businesses support and other critical business development services.
When most people think of an incubator or accelerator, they think of Silicon Valley or New York City or major technology and finance hubs serving billion-dollar companies. Why should these services only be available to those who already have connections and capital? That’s what the Capital Readiness Program is all about. We make the benefits and services of an incubator or accelerator accessible to entrepreneurs outside of Park Avenue and Palo Alto.
For founders of color, women entrepreneurs, rural entrepreneurs, disabled entrepreneurs, experienced entrepreneurs and others who have not had access to these types of business services in the past, the Capital Readiness Program is designed for you and your business.
MBDA is currently accepting applications for the Capital Readiness Program grant competition. We are looking for non-profits, for-profits, higher education institutions, or a combination of the three to join our Capital Readiness Program National Network. We are looking for entities that have the ability and desire to provide incubator and accelerator style services to underserved entrepreneurs. The application deadline is February 28. Then go to our website, MBDA.govfor more information and to apply.
Rhett Buttle: How are you addressing these challenges and how does it align with the Biden administration’s Build Back Better agenda?
Secretary of State Cravins: I am grateful to be part of a government so committed to creating an equitable economy for businesses and people of color. On the first day, President Biden issued Executive Order 13985, requiring all federal agencies to prioritize justice as a pillar of the government’s mission. Let me give you an example of how MBDA is playing a leading role in accomplishing the Biden-Harris administration’s Build Back Better mission.
The Infrastructure Investment and Jobs Act, also known as the Bipartisan Infrastructure Law, will invest $1.2 trillion in our country over the next ten years. This historic investment means new projects, new jobs, new federal contracts and new opportunities for minority businesses.
President Biden understands that people of color not only dream of owning and operating electric vehicles on new bridges, but also dreaming of building the bridges, designing the vehicles and owning the charging stations.
To play our role in this effort, in October 2021, the MBDA and the Department of Transportation (DOT) began working together to help minority-owned companies access federal contracting opportunities arising from the Infrastructure Act. We are strengthening DOT’s outreach efforts to the minority business community and leveraging our national network of MBDA Business Centers to connect Minority Businesses (MBEs) with contract opportunities.
Rhett Buttle: What should an entrepreneur do if he wants to seek the support of the Minority Business Development Agency?
Secretary of State Cravins: As I mentioned, the backbone of MBDA is our national network of 88 Business Centers and grant programs in 36 states and territories. Our centers and programs provide technical assistance and business development services ranging from help applying for federal grants and programs, securing capital, competing for contracts, accessing domestic and global networks and markets, creating strategic partners, and more.
Each of our programs is run by organizations and businesses within each community. They are experts who understand local markets and networks and know how to help companies get their foot in the door. And most importantly, they understand the unique needs and challenges of entrepreneurs of color.
If you are a minority business owner looking for technical assistance and business development services, please contact one of our MBDA business centers or grant programs. They can be found on our website, www.mbda.gov.
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Tip: Learn about the $100 million Capital Readiness Program Grant Competition and the establishment of the Minority Business Development Agency (MBDA) as a permanent government agency.
