As the City of Los Angeles prepares to host the upcoming Olympics, the lack of participation from minority-owned business enterprises (MBEs) in city contracting is a growing concern. Our workforce should be as diverse and vibrant as the city’s residents, reflecting the rich tapestry of cultures and backgrounds that make Los Angeles unique. Unfortunately, this is not currently the case. However, the problem is solvable, and the time to act is now.
One of the primary issues is that city RFPs (Requests for Proposals) do not ask prime contractors to meet any aspirational goals for MBEs. This must change. It is not an insurmountable task. The city already requires prime contractors to meet aspirational goals for women, small and local businesses, and veterans. Yet, MBEs are conspicuously absent from this conversation.
Some have blamed Proposition 209, a law that restricts race-based preferences or quotas, for the current situation. But this law does not prevent the City from establishing aspirational goals. Such statements of aspiration should reflect our values and would be important signals to minority-owned business.
Of course, setting such goals must be the starting point. More can be done with implementing and ensuring compliance with mandatory outreach requirements. The City can also enhance and encourage contracting mentorship programs, such as mentor-protégé contracting like those used by the federal government. Establishing initiatives aimed at supporting minority-owned businesses can help MBEs build capacity and compete effectively for City contracts.
These programs and initiatives are not just beneficial; they are essential. They provide MBEs with the tools, resources, and opportunities needed to thrive in the competitive landscape of city contracting. By fostering a more inclusive and equitable contracting environment, Los Angeles can ensure that all businesses have a fair chance to contribute to and benefit from the city’s growth and development.
Mayor Karen Bass has already dedicated a strong commitment to supporting Minority Business Enterprises as the city prepares to host an unprecedented slate of major global events including the super bowl, the 2028 Olympics, 2026 World Cup and other events. She hosted the first annual Sports and Entertainment Supplier Diversity Summit where small business owners connected with key industry partners and learned how to access capital and seize upcoming business opportunities. She and the Minority Business Chambers in Los Angeles have put a spotlight on the lack of MBEs participation in city contracting.
Let’s not miss this opportunity to bring equity and equality to city contracting by imposing a city-wide MBE goal on all city RFPs like the aspirational goals for women, small and local businesses, and veterans. Since there is no legal argument that prohibits establishing MBE goals on City RFPs, the City could move forward and mandate all city departments to implement the goals immediately.
Most MBE communities are suffering disproportionate financial challenges. MBE goals can be a way to help stimulate economic opportunity and jobs in underserved communities. The time to act is now.
Gene Hale is the chair of the Greater Los Angeles African American Chamber of Commerce (GLAAACC). Brandon Young and his partner, Matt, contributed legal research. They are cohorts from the Local Minority Chamber of Commerce.
