Why affirmative action benefits Tenn.’s diverse business economy

In February, outgoing Tennessee State Senator Mike Bell of Riceville and Representative John Ragan of Oak Ridge introduced legislation to eliminate Affirmative Action from state and local governments.

Senate Bill 2440 and House Bill 2569 prohibits the state from discriminating against or granting preferential treatment to an individual or group based on race, sex, color, ethnicity or national origin for public employment, education or contracting.

Both legislators represent rural districts in East Tennessee.

Why does this matter in contracting?

It matters because those districts, according to Data USA, are predominately white and the legislation both men introduced will impact urban communities and businesses composed of Black, Indigenous and People of Color (BIPOC) – all of whom have historically been disenfranchised in contracting opportunities across the state of Tennessee.

In West Tennessee – specifically, Shelby County, Black residents make up 53% of the total population, however, Black businesses experience significant disparities in the number of contracts awarded by both public and private sectors. And, there are many reasons why these disparities exist, however, I’d like to call out the challenge I believe has the most significant impact on minority contracting – exclusionary networks.

It’s been well documented that one of the many reasons diverse businesses have not increased participation in government contracting, is due to a lack of access to the networks and relationships that could bring forth more efficient business decisions.

As a Black business owner, I know, first-hand, that networks can be a gamechanger. I’ve been able to grow and sustain my business not only because of my firm’s experience, but from authentic connections to networks of decision-makers who recognize my value to their bottom-line. Because of my relationships, I’ve been able to secure opportunities at a faster, more consistent rate than many of my peers.

I am not unique in this mission

There are other qualified firms that should be engaged to participate in the economic growth across the state. I believe that when governments, corporations and individuals are proximate to diverse businesses within the communities they serve, they build an awareness of the actions needed in order to make economic opportunities more equitable and inclusive.

On the contrary, when the same stakeholders are not proximate, they risk hurting underserved communities with poor legislation, misaligned policies and exclusive business practices – leaving the economic landscape, lopsided. This is what we’re seeing with the introduction of SB 2440/ HB 2569.

So, what are the implications of ending inclusive policies within state and local government contracting?

The implications would be severe not only for diverse business owners, but for the entire economy. With Ford Motor Company’s Blue Oval Project in West Tennessee, diverse businesses would miss out on what has been reported as the largest economic development project in our state’s history.

To date, the numbers for minority business participation is a little over 3%. If the policies that are already in place go away, there will be no political will to do the right thing with inclusive business practices.

What is the path forward?

In business, relationships matter. This is especially true for diverse businesses which are often locked out of networks that provide information, mentorship, access to capital and technical assistance – all of which are essential for success.

Fortunately, neither bill made it out of this year’s session which gives us more time to advocate for economic inclusion across the state.

During this recess, I invite our legislators to partner with us in engaging diverse business owners and job seekers who have been historically excluded due to bias and other discriminatory business practices. Sit with them. Understand their challenges.

Visit with companies like Autozone and Fedex that have best practices on inclusive business contracting and have also made commitments through their supplier diversity programs to increase engagement and contract awards across all functional areas.

These types of actions are critical in fostering a thriving and inclusive business environment, and should be cited as examples on how to create economic environments where everyone can participate.

As attorney and author, Bryan Stevenson, emphatically contends, “we can’t solve problems at a distance…if we are willing to get closer to people who are suffering, we will find the power to change the world.”

Andre Dean is the president and principal owner of Dean & Associates – a government relations, business, and professional services consulting firm.