The value of minority business associations - Public Policy Scope

A couple of weeks ago, I posted an article discussing the value, deficiency and opportunities for Minority Business and Trade associations. I got a lot of response and interest from inside and outside of this marketplace. Some respondents were critical of the association community and some were ardent defenders of their programming and current value.

I wanted to expound upon this subject area by focusing on three key aspects that are missing within this sector but need to become areas of focus and development:

 

• Active public policy programming
• The Business to Consumer ownership class (next article)
• Minority to Minority business and consumer based procurement promotion (next article)

 

Let’s delve into public policy and the impact on businesses of color. There are a significant number of global events that are impacting the American Business community:

• Tax Reform proposal,
• Potential Replacement of the ACA (Affordable Care Act) with the AHCA (American Health Care Act),
• the potential of a Border Adjustment Tax on Mexican Imported goods and services,
• pulling back EPA regulations,
• barriers to or opening of new trade opportunities with China,
• Expanding Oil, Natural Gas and Oil Sands exploration opportunities
• Brexit and the nationalist wave impacting the EU,
• the USA Mid-Term elections and permanent campaign season,
• Possible renegotiation of NAFTA and trade wars with Canada

 

These situations don’t just impact Corporations, rural mining communities or suburban former steel or manufacturing towns, they affect businesses of color. Regulatory rules, tax policy, foreign market access, health care are real world factors that can impact many aspects of the daily operations of businesses of color and their opportunities for growth. However, from a national level down to the local level, the association community focuses their public policy and advocacy positions on three areas:

• Governmental & Corporate Contracting
• Access to capital
• Being a “resource” on businesses of color (considering that the association class represents no more that 12% of all minority businesses in the US and their primarily B2B enterprises, there’s not able to provide a detailed picture)

 

While these are important areas of work, they don’t address the universal needs and opportunities for growth. Take a look at the key differences between two national business associations, and their public policy platforms

The National Minority Supplier Development Council

Public Policy platform

As we build our strategic plan in alignment with the NMSDC value propositions, we will begin to advocate for minority business enterprises (MBEs) at both the national and local level. NMSDC principles, policies and programs represent best practices and offer important lessons for policymakers.

 

OUR GOALS

1. To ensure equivalent opportunities for minority businesses in federal entrepreneurship policies and contracting.

2. To demonstrate to federal policy makers and other business stakeholders that NMSDC is the thought leader in advocating for minority business growth and development.

3. To enlighten federal policy makers and others in how NMSDC’s minority supplier development policies and strategies are synonymous with best practices and are key tools for growing mature minority businesses of scale and size across all industry sectors.

4. To establish NMSDC’s authority as the go to resource for comprehensive information and advice concerning policies, regulations, and/or legislation concerning minority-owned businesses, contracting, growth and development.

 

OUR CALL TO ACTION

1. Advocate – urge the Trump Administration and the Congress to fully enforce existing federal rules concerning MBE diversity and inclusion for direct and federally assisted contracting. Request that the Trump Administration and the Congress collect, publish and assess data from every federal agency concerning their respective diversity and inclusion goals.

2. Collaborate – partner with NMSDC on ways to modernize and improve minority business/DBE certification processes and particularly federal certification requirements to better correspond to market realities.

3. Support – pilot programs that utilize NMSDC’s expertise in performing certification function

The U.S. Chamber of Commerce

Domestic Policy

Agriculture & Food Safety - America is the global leader in agriculture. The agricultural sector provides jobs for more than 21 million American workers, or 15% of the total U.S. workforce. Agriculture and agriculture-related industries contributed $776 billion to the U.S. gross domestic product in 2012, a 4.8-percent share. U.S. agricultural exports more than doubled from 2006 to 2013 and continue to rise. To maintain its role as a global leader in agriculture, the United States must ensure that federal food regulations are efficiently developed, based on sound science and the best data available, consider actual health risks, and avoid unnecessary burdens to the nation’s farms, 97% of which are owned by families. The U.S. Chamber’s priorities include; Food Safety, Farm Bill; Sugar Program; Food Product Advertising 

Debt & Deficit - It is the role of the government to responsibly manage our nation’s finances so that: we have the resources to invest in priorities that are essential to our national security and competitiveness; we can provide a sustainable safety net for the sick, elderly, and poor without depleting all of our other financial resources; and we can ensure that future generations aren’t saddled with debt they didn’t incur. In order to meet those obligations, the Chamber is calling for government reforms that will address the looming crisis of unsustainable entitlement programs, keep deficit spending low for the long-term, and rein in our growing debt.

Education - A strong education system is crucial to preparing young people for good jobs and bright futures and sustaining a 21st century workforce that can compete in the global economy. The Chamber is focused on fixing shortcomings in our education system so that: students emerge from our public education system prepared for college or career; higher education is more accessible and affordable; employers can find workers with the right skills and qualifications; and our workforce will attract investment, drive growth, and spur innovation.

Energy - America is in the midst of a true energy revolution. After decades of fear over potential energy scarcity, we are now in an era of energy abundance, driven by technological innovation and American know-how. But will we have the wisdom to capitalize on this opportunity? If we develop smart policies, we can use affordable and abundant energy to launch a manufacturing revival, improve our trade deficit, effectively increase household spending power, and revitalize America’s economy.

 Environment - The Chamber strongly supports continued environmental improvements, including sensible approaches to reducing greenhouse gas emissions. We believe that economic growth and environmental progress are not mutually exclusive goals. In fact, the United States is the only major country that has actually and substantially reduced its C02 emissions while continuing to grow our economy. To make further progress, we should be guided by what has already worked: gains in efficiency, new technologies, and the increased use of natural gas and renewable fuels.

Financial Regulations - Capital goes where it is welcome, where it feels safe, and where it has a reasonable opportunity to earn a profit.  To maintain and advance its global leadership in capital formation, the United States must have the most fair, efficient, and innovative capital markets in the world. We can’t achieve this without a modern and coherent financial services regulatory system.

In many ways, the government is moving us further away from well-functioning, well-regulated capital markets by producing a maze of overlapping, contradictory, and duplicative financial regulations. The U.S. Chamber is fighting for the kind of financial rulemaking that protects consumers and investors, encourages reasonable risk taking, doesn’t constrain innovation and growth or allow special interest groups to advance their agendas at the expense of all investors, and is coordinated with other economies and among the many domestic agencies that issue financial regulations.

Free Speech - There are some freedoms that define the American dream and bring vitality to a productive, innovative, and prosperous free enterprise system. Those freedoms include the right to speak, the right to due process, and the right to take a risk and be rewarded, not vilified, for your success.

These rights are the building blocks of our free society and our free enterprise system. And when they come under attack, the Chamber responds. 

Federal Contracting - The federal government should not produce goods and services for itself or others that can be produced at a lower price, with higher quality, and a faster delivery schedule by private businesses. The government saves billions of tax payer dollars and sustains the nation's competitive edge in industries such as defense, information technology, and management when it partners with and invests in private sector companies.

However, a complicated and inflexible federal contracting process with costly administrative burdens deters many businesses from bidding on contracts. The U.S. Chamber works to streamline the acquisition process, ensure a fair and open procurement system, and encourage the government to rely more on the private sector for the goods and services it needs.

Health Care - In many ways, U.S. health care is the envy of the world—it has helped many individuals live longer than ever and enjoy a better quality of life than previously possible. However, we continue to face the challenge of making quality health care more affordable, more accessible, and more reliable for all Americans. The Chamber is focused on promoting effective private sector solutions to our health care challenges that will help control costs, expand access, and improve the quality of care.

Immigration - Throughout our history, America has had the opportunity to grow and thrive because we have attracted and welcomed the most talented and the hardest working people to our shores. But today our immigration system is broken and failing to meet the needs of our society, our economy, our businesses, and our workers.

Commonsense immigration reform would boost economic growth, create jobs, and spur innovation and entrepreneurship. And it would renew America's legacy of being an open and welcoming country where anyone who works hard can achieve his or her dreams.

 Infrastructure - Most Americans agree that our roads, bridges, mass transit systems, air and sea ports, and water infrastructure are critical national assets that drive growth, jobs, safety, and global competitiveness. What we can’t seem to agree on is how to pay for badly needed maintenance and repairs. It’s time to stop thinking about infrastructure as a problem, but as an opportunity for bipartisan agreement to invest wisely and carefully in our most critical needs, while eliminating wasteful spending.

Intellectual Property - Our economy is driven by the need to innovate, create, and develop new ways to serve consumers, and industries that rely on intellectual property (IP) play an essential role. When inventors, researchers, engineers, artists, and entrepreneurs know that their work will be protected and rewarded through strong IP rights—including patents, trademarks, and copyrights—they have the certainty and the incentive to keep the economy-boosting innovations coming. Moreover, IP protections guard consumers against dangerous fakes and counterfeit goods.

The Chamber’s Global Intellectual Property Center is dedicated to promoting innovation through strong IP rights at home and abroad, as well protecting U.S. consumers and keeping U.S. industries on the leading edge of the competition.

International Trade and Investment - Selling more of our goods and services around the world is a great way to create American jobs, help small businesses, and keep the United States ahead of its global competitors. The Chamber wants to negotiate trade and investment agreements that are fair, accountable, and create a level playing field; put American families and workers first; and benefit consumers and businesses, especially small businesses, which represent 97% of all U.S. exporters. 

Labor - The United States economy is supported by a highly innovative, creative, productive, and industrious workforce. The jobs that make up the U.S. economy—and the businesses that create those jobs—help workers provide for their families and lead healthy, comfortable, and fulfilling lives. To keep the economy vibrant and to continue to create opportunity for workers, we must ensure that new businesses can be launched and current ones can be expanded. The U.S. Chamber promotes workplace policies that will enhance, not inhibit, economic growth and job creation.

Legal reform - Every American who has been legitimately wronged deserves his or her day in court. The U.S. Chamber and its Institute for Legal Reform are working every day to make our legal system faster, simpler, and fairer. We are fighting those who abuse the system for their own personal gain, clog the courts with meritless lawsuits, and undermine our right to due process.

National & Cyber Security - Economic security and national security go hand-in-hand. We must have one in order to protect the other. The Chamber advocates for protecting vital U.S. assets—both physical and digital—to ensure the safety and security of our citizens and to promote the free flow of commerce and information that drives our economy and enriches our society.

To learn more, visit the Chamber’s National Security and Emergency Preparedness Department.

Regulatory Reform - The Chamber recognizes the need for smart regulations to ensure workplace safety and protect public health. But with a $2 trillion price tag in compliance costs and an increasing number of huge and complex rules, it’s clear the regulatory system isn’t working the way it should. Americans deserve a working regulatory system that is fair for everyone, takes into account the views of communities and businesses, evaluates the impact rules will have on jobs and small businesses, and protects our economic and personal freedoms.

Retirement - American businesses of every size maintain a long-held commitment to providing voluntary benefits that support the welfare of their workers. As Americans live longer, healthier, and more active lives, retirement security becomes a greater concern—particularly with the uncertainty surrounding government programs like Social Security. The private employer-provided retirement system has contributed significantly to the retirement needs of millions of seniors. The Chamber and its members are committed to continuing the success of the system and ensuring the long-term retirement security of Americans.

Taxes - Our tax code is a drag on growth, wages, and global competitiveness. U.S. businesses will increasingly struggle to compete around the world and remain strong at home if we don’t modernize our antiquated and complex tax code. The Chamber is fighting for a smarter, streamlined tax system allowing taxpayers to make smarter decisions about how they work, save, and invest, and unleashing the power of American businesses—large and small—to create jobs. 

Technology - Technology is the thread that runs through a competitive economy, driving multiple and diverse industries and impacting myriad policy issues that are vital to commerce and communication. Technology-based industries and businesses create tremendous growth and opportunity in the U.S. economy and are essential to competing in an interconnected world. Outdated laws and regulations impede U.S. technological innovation and deployment. The U.S. Chamber promotes market-based solutions, policies that foster investment in technology research and deployment, and balanced regulatory treatment of technical platforms.

Transportation - America has always been a nation on the move. But an aging and crumbling transportation system is not only slowing Americans down, it’s reducing productivity, undermining our ability to move products across the country and around the world, and increasing congestion and air pollution. It’s time to get America moving again!

Travel & Tourism - Expanding travel and tourism can and should be a bipartisan priority, and it’s one the U.S. Chamber strongly supports. Travel and tourism already accounts for $888 billion in revenues and 7.9 million American jobs. It could do so much more for our economy if we did a better job of laying out the welcome mat for international travelers. In fact, if we restored our share of the travel market to its 2000 level we could create more than 450,000 jobs by 2020.

International Agenda

• The Benefits of International Trade
• The Benefits of International Investment
• Level the Playing Field for Trade
• Trans-Pacific Partnership
• Transatlantic Trade and Investment Partnership
• Trade in Services Agreement
• Strengthen the World Trade Organization
• Reauthorize the Export-Import Bank
• Enforce Trade Agreements
• Foster Development through Trade and Aid
• Help Small Businesses to Export
• Protect Intellectual Property
• Welcome Investment from Abroad
• Secure U.S. Investment Overseas
• Promote Global Regulatory Cooperation
• Safeguard Cross-Border Data Flows
• Advance Trade Facilitation
• Oppose Unilateral Economic Sanctions
• Adopt Talent-Oriented Immigration Policies
• Modernize Export Controls
• Reject “Buy Local” Rules

International Agenda - The United States faces a choice—to reach out and seize the benefits of international engagement, or retreat into isolationism. This choice is central to the competitiveness of the U.S. economy and the hopes of hardworking citizens pursuing the American Dream.

The United States is home to one of the most prosperous societies in history. Most Americans appreciate the benefits of engagement, but some question this openness, wondering whether the unfettered flow of goods, services, investment, people, and ideas helps or hurts the average family. While some are hurt—and should be helped—the facts will show that the overwhelming majority of Americans derive great benefits from international engagement. 

About one-third of the U.S. jobs created in 2009-2014 were in industries that depend on trade. Today, more than 41 million American jobs depend on trade. Ninety-eight percent of America’s exporters are small businesses, not large, multinational corporations.

Indeed, outside our borders are markets that represent 80% of the world’s purchasing power, 92% of its economic growth, and 95% of its consumers. The resulting opportunities are immense.

Imports help Americans too. They mean lower prices for American families as they try to stretch their budgets—and for companies seeking raw materials and other inputs. Access to imports boosts the purchasing power of the average American household by $13,000 annually.

Foreign companies have long invested in the U.S. marketplace because our markets are safe and profitable. Foreign companies directly and indirectly employ more than 24 million Americans.

U.S. investment overseas benefits Americans as well. Overseas affiliates of U.S. companies have racked up annual sales of $7 trillion in recent years. Above and beyond exports, these sales generate profits and create jobs back home.

Africa - The U.S.-Africa Business Center (U.S.-AfBC) is the preeminent voice in the global business community advocating for increased trade between the United States and Africa. The U.S. Chamber of Commerce created the U.S.-AfBC to lead the U.S. business community in a new period of unprecedented engagement with Africa’s regional economic communities, the established African private sector, as well as small and medium-size enterprises (SMEs).

Americas - The U.S. Chamber of Commerce's Americas Department positions its companies to succeed in the markets of the Western Hemisphere, providing unparalleled brand advancement and policy advocacy.

Our advocacy on trade agreements and trade facilitation, regulatory cooperation, regional infrastructure, boreder efficiencies, intellectual property, and rule of law serves the goals of:

• Securing market-opening free trade agreements.
• Defending intellectual property rights.
• Protecting investors.
• Promoting trade facilitation reforms.
• Securing the rule of law.
• Enhancing economic partnerships with Mexico and Canada.
• Highlighting the contribution of U.S. businesses to economic prosperity in the region.

Over 300 member companies actively participate in our Americas Task Force, which monitors regional developments and promotes hemispheric economic integration. The Task Force reports to the U.S. Chamber's International Policy Committee  

Asia - The Chamber's Asia Department gives voice to policies that help American companies compete and prosper in Asia's dynamic marketplace. Our expertise allows companies to actively shape policy debates in Asian countries and in Washington. The Chamber helps companies gain greater access to senior government officials and corporate representatives in a way few organizations can.

Eurasia - The Eurasia Business Platform (EBP) provides the U.S. government and other relevant institutions with a strategic business outlook vis-à-vis the emerging markets of the Caucasus, Central Asia, Ukraine, Russia, Belarus, and Moldova. It allows members to create and maintain dialogue, access, and strategic interaction with Eurasian governments and business decision makers.

The EBP fosters regional cooperation and integration with a particular focus on transport development and facilitating trade in a way that supports today's global supply chain security requirements. The EBP taps into the established network of accredited American Chambers of Commerce in Eurasia to further promotes economic diversification and the adoption of transparent economic policies that encourage US investment.

Europe - The Chamber's Europe team champions a pro-business agenda across Europe and in Washington to expand commercial opportunities for members by advancing open and competitive markets, economic growth, and transatlantic cooperation.

The more than $6 trillion commercial relationship between the United States and the European Union is unparalleled in size and scope. Almost $3 billion in trade in goods alone crosses the Atlantic every day. Still, opportunities abound to strengthen and deepen our bilateral ties to drive the global economy forward. The United States and the EU must jointly lead efforts to ensure that all nations pursue trade and investment policies reflecting a fundamental commitment to the rule of law, fairness, and transparency.

Key activities of the European Affairs Department include the following:

• Leading the charge in support of a comprehensive and ambitious Transatlantic Trade & Investment Partnership (TTIP) agreement. The Europe team does this through direct policy advocacy and by serving as the secretariat for the Business Coalition for Transatlantic Trade (BCTT).
• Convening dedicated task forces. These task forces focus on critical issues, including taxation, regulatory cooperation, the Digital Single Market, and European energy policy.
• Hosting heads of state and government. In 2014 alone, the Chamber welcomed U.K. Prime Minister David Cameron, French President Fran?ois Hollande, German Chancellor Angela Merkel, Irish Taoiseach Enda Kenny, and former European Commission President José-Manuel Barroso, among others.
• Holding invitation-only, off-the-record roundtables. These discussions take place in both Washington and Brussels with European Commissioners, members of the European Parliament, member state officials, members of Congress, senior U.S. government officials, and other thought leaders.
• Expanding our focus in central and Eastern Europe. Specifically, the Chamber has a robust U.S. Polish Business Initiative designed to drive investment and innovation between the United States and Poland, Europe's fastest-growing economy.

 

Middle East & Turkey - The U.S. Chamber's Middle East and Turkey Affairs program is the premiere business advocacy platform for strengthening the commercial relationships between the United States and Turkey, as well as the United States and the Middle East region.

We continue to lead the business community's efforts to shape policies that advance U.S. trade and investment in these countries. Our programs and initiatives help expand U.S. companies' access to the growing markets in the Middle East and Turkey and attract inward investment into the United States.

 India – Policy Overview

Vision

The Council aims to create an inclusive bilateral trade environment between India and the United States by serving as the voice of industry, linking governments to businesses, and supporting long-term commercial partnerships that will nurture the spirit of entrepreneurship, create jobs, and successfully contribute to the global economy.

Advocacy

Advocate members’ interests in India and the United States and advance members’ priorities through U.S.-India Business Council Executive Committee meetings, multilateral consultations, and collaborative programs with public and private sector stakeholders.

Mission

The Council’s mission is to promote bilateral trade relations between India and the United States through pro-growth policies that will advance commercial partnerships from $100 billion to $500 billion by the end of the decade.

Governance

To foster the growth of bilateral trade between the two countries, the U.S.-India Business Council provides its member companies access to unparalleled leadership in both the public and private sectors. John Chambers, Chairman of Cisco Systems, serves as Chairman of the Council.

What does this all mean?

The differences are starling and troubling. The National Minority Supplier Development Council is the leading national minority business & trade association, crossing all communities of color (African American, Latino American, Asian American, Arabic American, Native American, Multi-Racial American, etc.), yet it lacks a policy with depth, range and industry/international focus. In comparison, the U.S Chamber of Commerce has a robust Domestic and International policy agenda that touches members across industry, geographical borders and market segments. This is a glaring weakness within the minority business association sector. While having the unique focus of advocacy for businesses of color, they lack the progressive policy components to address the governmental and geographical impacts that affect their members. This is a common thread across state, regional and local general chambers and trade associations, versus those that are geared to focus on Minority businesses. These general chambers and industry specific trade associations gear their governmental outreach and advocacy towards broad and specific policies that impact the total business and look to develop opportunities across borders. The Minority business associations tend to focus on general topics such as awareness that minority businesses exist and the need for government to include them in contracting & procurement. This is a narrow focus that doesn’t touch the broader aspects of policy, regulatory and taxation rules that impact these businesses.

This is an opportunity for the minority business associations to develop actual public policy agendas that can match their general business colleagues in depth and reach. If you want to be of real tangible value to your membership, these are the mandatory steps necessary.