Shapiro-Davis Administration sets mark for nearly $700M spent with small businesses

The Department of General Services announced that the Shapiro-Davis Administration invested a record-setting $691 million with small diverse business, women-, minority-, and veteran-owned businesses in the 2023-24 fiscal year. 

The nearly $700 million marks an increase over the $562 million spent in 2022-23. The investments included an increase in spending with Black-owned and Latino-owned businesses, growing from $104 million in 2021-22 to $136 million in 2022-23. 

“Governor Shapiro and I recognize that small businesses and small, diverse businesses are the backbone of our economy and the beating heart of communities across the commonwealth,” Lt. Gov. Austin Davis said in a statement.  “When we took office, we pledged to increase and open up new doors of opportunities for these businesses to compete for — and win — state contracts. 

“I’m excited to see our efforts are already bearing fruit, but there is still much more work to be done, as we work to expand economic opportunity and help Pennsylvania families build generational wealth,” added Davis. 

Department of General Services (DGS) Secretary Reggie McNeil said the investments reflect a commitment to creating an inclusive economy. 

“By empowering business owners of all backgrounds, we’re not only fostering economic growth but also ensuring that the benefits of prosperity are shared across every community in Pennsylvania,” said McNeil. “This achievement is a testament to this administration’s continued focus on building a stronger, more equitable commonwealth.” 

Stephanie Turman, president of Always Busy Consulting and Pennsylvania Advisory Council for Inclusive Procurement member, said small and small diverse business owners in Pennsylvania face numerous barriers when trying to do business with the state. 

“We have been speaking out about these barriers for years, and we just want a fair shake,” Turman said. “The Shapiro-Davis Administration took our concerns seriously, and they took action.” 

According to a release, actions taken by the Shapiro-Davis Administration to expand opportunities and improve procurement process for small business (SB), small diverse business (SDBs) and women- and minority-owned businesses and veteran business enterprises (VBEs) include the following: 

• Launched an initiative to support Pennsylvania-based small businesses by purchasing more products from them through Amazon Business. 

• Created a Mentor-Protégé Program to help small businesses compete for state contracting opportunities.  

• Updated Department of State business registration forms, to collect more information and share that information with DGS if a business qualifies as a SB, SDB, or VBE. 

• Expanded the definition of a small business to align with the U.S. Small Business Administration’s definition and allow more businesses to qualify. 

• Implemented a prompt pay policy, so subcontractors must be paid within 10 days after a prime contractor receives payment from the state; and 

• Reduced the time it takes for DGS to certify a small business. 

Kerry Kirkland, Deputy Secretary for DGS’s Bureau of Diversity, Inclusion and Small Business Opportunities, said the administration’s focus on inclusion is serving to level the playing field for SBs, SDBs, VBEs, and women- and minority-owned businesses in Pennsylvania.  

“Through innovative initiatives, consistent outreach, and a relentless focus on inclusion, we are breaking down barriers and opening doors to opportunities that were previously out of reach for many,” said Kirkland. “The Shapiro-Davis Administration is dedicated to creating an environment where small and diverse businesses can thrive and contribute to the vibrant economic fabric of our state.”