County small business enterprise utilization soars

Local small businesses received government contracts totaling over $55 million in fiscal year 2024. That number could grow exponentially in the wake of back-to-back hurricanes.

Pinellas County Commissioners heard an update on the Small Business Enterprise (SBE) Program’s success at an Oct. 24 workshop before discussing a monumental storm recovery process. The total value of awards increased by 45% from 2023 to 2024 and 96% since fiscal year 2022.

“That’s also key to our recovery,” Administrator Barry Burton said of the program. “Considering most of our businesses are small businesses.”

Small, minority, women and veteran-owned businesses participating in the initiative receive preference on contract awards between $5,000 and $100,000, provided proposals meet the county’s criteria. Corey McCaster, director of small businesses and supplier diversity, said the program has become a resource for government stakeholders and community partners.

Providing federal regulatory education is a critical aspect of the program. McCaster said his department recently began collaborating with St. Petersburg-Clearwater International Airport officials to identify SBE contractors who meet new U.S. Department of Transportation requirements.

The airport is undergoing a $110 million expansion that will add four new gates with jet bridges and a centralized security checkpoint. McCaster said ensuring local small businesses have access to “some of the great opportunities” happening around the region is “on top of our radar for all of us.”

Those include a new $1.37 billion Tampa Bay Rays ballpark in St. Petersburg, a new Moffit Cancer Center campus in Pasco County and a long-awaited, on-campus football stadium at the University of South Florida. In addition to the “work we do every day with small businesses in the community,” McCaster said providing access to those projects would help provide financial stability and encourage participation in county initiatives for “years to come.”

“So, that’s what we’re focusing on – making sure they have access and no downtime between projects,” he added. “It’s always about cash flow for small business owners.”

A graphic highlighting the Small Business Enterprise Program’s exponential growth over the past five years. Screengrab.

Program registrations increased by 10% last year, a “significant” number. McCaster said eliminating contract award roadblocks is a priority, and the county’s utilization rate is 29%.

He noted the utilization rate far exceeds the U.S. Small Business Administration’s 13% benchmark. McCaster said that underscores the impact of the local initiative, which bolsters the economy by fostering job creation and supporting often marginalized entrepreneurs.

He said the $55.6 million in contracts awarded represents a “tremendous amount of growth over time.” Payments to SBEs have increased by a “whopping” 116% since fiscal year 2022.

The public works department awarded 14% of its budget to SBEs. McCaster also highlighted contributions from the real estate (13%), parks and conservation (12%), animal services (10%) and community development (8%) departments.

“Given the recent impacts of Hurricanes Helene and Milton, this support will be even more critical as local small businesses work to recover,” McCaster said. “I’m sure they’re going to be seeing opportunities with the county … as they make their pivot back to solvency and strength.”

He will continue working with departmental leadership to include SBE-specific opportunities in all county projects. McCaster explained that de-bundling contracts can aid those efforts.

Insurance requirements can present hurdles for small business owners. McCaster said he and his team work to ensure those mandates are proportionate to the potential award.

He also noted that owners must learn “particular skills” to work with governments. Those typically vary from the private sector, and McCaster said the county’s Small Business Development Center provides critical wraparound services to help them understand unfamiliar processes.

His department has held 94 training sessions over the past year. “They are doing a lot of stuff you don’t see,” Burton told commissioners.