In an effort to create diversity in business ownership, both government and big business have come up with a number of minority setaside programs for female- and minority-owned small businesses.
These setasides can be a great boon to minorities or women entrepreneurs. “I have gotten a lot of business from these programs that otherwise I wouldn’t have obtained, because I was bidding against bigger competitors with bigger staffs,” says Karen Terry, owner of CM Services, a software consultant in Austin, Texas, who has won a number of contracts with Texas state agencies.
Figure out if you qualify
By definition, minorities and women entrepreneurs have a great chance of qualifying for public and private setaside programs. Typically, you just need to be female or a member of an ethnic minority; you must be the majority owner of your company; and your company must be able to demonstrate both current viability and sound prospects for future success.
There are also minority setaside programs for disabled people and military veterans. “I was surprised to find out about this when I went to a Small Business Administration expo last spring,” says Brian Drum, a veteran who heads Drum Associates, his own executive-search business in New York City. “And now I’m in the qualification process.”
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