HARRISBURG, PA — The Shapiro-Davis Administration has achieved a new milestone in its commitment to economic inclusivity, setting a record for spending with small diverse businesses (SDBs) and veteran business enterprises (VBEs) during the 2023-24 fiscal year. According to the Department of General Services (DGS), the Commonwealth allocated nearly $700 million to these vendors, marking a significant increase from the $562 million spent in the previous fiscal year.
“Governor Shapiro and I recognize that small businesses and small, diverse businesses are the backbone of our economy and the beating heart of communities across the Commonwealth,” said Lt. Gov. Austin Davis, chair of the Pennsylvania Advisory Council for Inclusive Procurement (PACIP). “When we took office, we pledged to increase and open up new doors of opportunities for these businesses to compete for — and win — state contracts. I’m excited to see our efforts are already bearing fruit, but there is still much more work to be done, as we work to expand economic opportunity and help Pennsylvania families build generational wealth.”
The DGS reported that the Commonwealth’s spending with SDBs and VBEs reached $691 million in the 2023-24 fiscal year. This record-breaking investment included a notable rise in spending with Black-owned and Latino-owned businesses, which grew from $104 million in 2021-22 to $136 million in 2022-23.
“These record-breaking investments in small businesses reflect the Shapiro-Davis Administration’s unwavering commitment to creating an inclusive economy. By empowering business owners of all backgrounds, we’re not only fostering economic growth but also ensuring that the benefits of prosperity are shared across every community in Pennsylvania,” said DGS Secretary Reggie McNeil. “This achievement is a testament to this administration’s continued focus on building a stronger, more equitable Commonwealth.”
The Shapiro-Davis Administration has implemented several initiatives over the past year to enhance opportunities for small businesses. Key actions include launching a program to support Pennsylvania-based small businesses through Amazon Business, creating a Mentor-Protégé Program, and updating business registration forms to better identify eligible small and diverse businesses. Additionally, the administration expanded the Commonwealth’s definition of a small business, implemented a prompt pay policy for subcontractors, and reduced certification times for small businesses.
In September 2023, Governor Josh Shapiro signed an executive order establishing PACIP, a 16-member council advising on state contracting inclusivity. The council, led by the Lieutenant Governor, has held quarterly meetings since its inception in December 2023.
“Small and small diverse business owners in Pennsylvania face countless barriers when trying to do business with the Commonwealth,” said Stephanie Turman, president of Always Busy Consulting and PACIP member. “We have been speaking out about these barriers for years, and we just want a fair shake. The Shapiro-Davis Administration took our concerns seriously, and they took action.”
“The strides the Shapiro-Davis Administration has made in supporting small diverse businesses are the result of intentional, strategic actions to level the playing field. Through innovative initiatives, consistent outreach, and a relentless focus on inclusion, we are breaking down barriers and opening doors to opportunities that were previously out of reach for many,” said Kerry Kirkland, Deputy Secretary for DGS’s Bureau of Diversity, Inclusion and Small Business Opportunities. “The Shapiro-Davis Administration is dedicated to creating an environment where small and diverse businesses can thrive and contribute to the vibrant economic fabric of our state.”
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