Letter of Support for New Jersey Senate Bill 2311

The Drake Institute of Research and Policy SUPPORTS Senate Bill 2311 which calls on the New Jersey legislature to pass, and the Governor to sign, legislation to prohibit disqualification of certain minority-owned and women-owned businesses for certification. 

SB 2311 seeks to modify eligibility criteria for minority-owned and women owned businesses under State law. Minority and women businesses would engage in procuring materials and supplies to certify their establishments. The bill requires formal protocol of authorizing certification for minority and women businesses to determine if they have an appropriate arrangement that does not violate ownership requirements. 

Women can be business certified and must be eligible through the New Jersey Department of Revenue. The eligibility requirements include a business being owned and controlled by women who have at least a 51 percent ownership interest in the business. Women owned businesses can contribute new sources of revenue by diversifying their suppliers and provide various procurement for goods and services. New Jersey women-business owners may be more challenged in growing revenues as compared to other states. Minority business owners, in particular, will have difficulty.

In 2014, minority-owned businesses averaged $67,800 in revenue; by 2019 the average had dropped to $65,800, a decline of 3%. As of 2019, women of color account for 50% of all women-owned businesses. An estimated 6.4 million women of color-owned businesses employ nearly 2.4 million people and generate $422.5 billion in revenue. Women owned certified businesses would establish credibility and expand leadership opportunities. Women business owners would have the flexibility to workout in various diverse markets and establish innovative collaborations.

For these reasons, the Drake Institute of Research and Policy SUPPORTS Senate Bill 2311 and asks for a FAVORABLE report.

 

 

Prepared by: Chalyna Lazo, Policy Advisor

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