Washington has locked on to jobs as the key issue going into the next election. While this is certainly an area that needs attention, finding true opportunities in the proposed legislation is not always easy.
Nowhere is this more true than in The American Jobs Act (AJA), the 155 page jobs stimulus plan recently put forward by President Obama. The Hoover Institution calls it a “mish-mash of taxes, subsidies, and regulations” and the proposals encompassed by the bill certainly do run the gamut from “Buy American” regulations, to closing tax loopholes for corporations. While it is not clear that the bill in its entirety will pass Congress, certain elements will likely be split out and voted into law. Some of the frontrunners include extended payroll tax cuts, bonuses for hiring the long-term unemployed, and $50 billion in new infrastructure spending.
Where in all of this can minority and women-owned businesses (MWBEs) find opportunities and new competitive edges? First, it is important to keep a sharp eye on developing bills. Much of what is discussed will not make it into law, while other provisions will be rushed into effect as a part of the overall election cycle. MWBEs are already recognized for being more nimble and adaptable than other kinds of firms, and this ‘speed to change’ will be an advantage in whatever bills are passed. Free of legacy systems and entrenched thinking traditions, minority firms can rapidly adopt new norms and new regulations to reap the benefits of any finalized legislation, giving them a leg up on the competition.
Bonuses for hiring certain classes of workers may be another key area of benefit for minority firms. Early versions of the AJA offer as much as $4,000 in tax credits for hiring people who have been unemployed for six months or longer, while later provisions offered complete rebates on payroll taxes for new hires. Since minority firms are adding jobs faster than other businesses, these credits and rebates can offset the costs of expansion, allowing MWBEs to build human capacity to take on more or bigger projects in markets where competitors are cutting back.
Finally, the infrastructure spending provisions could provide a significant area of opportunity, especially if they are passed with their original “Buy American” mandates. This could mean up to $50 billion in new infrastructure spending that must be spent with American owned businesses. MWBEs can bid independently as American-owned providers for portions of the work or build partnerships to take on whole projects from start to finish. As undeniably American and often highly localized, MWBEs would be a first choice to work on these projects over multinational suppliers and building conglomerates.
Of course, the ultimate passage of the AJA remains highly politicized. All of us must make sure we are reading between the political lines to the real business impacts. Minority business organizations can take the lead in sorting through policy-speak and posturing to make the facts more relevant and understandable to our community, which we will support with coverage in these pages.
Still, the biggest opportunities for MWBEs in Obama’s jobs bill may be in the truth that no single jobs bill will solve everything. The minority business community has evolved to be a nimble, innovative group, and not one to stand around waiting to see where the chips may fall on this bill or any other. Instead, let us all continue to pursue the existing opportunities for new and expanded contracts at the first and second tier levels. By constantly seeking these opportunities domestically and internationally, we will find them. Jobs bills such as the AJA will help, but as always, MWBEs have the power to make their own opportunities, too.