Small Biz Bulletin - February 2025

Building A Stronger Maryland Together: Dear partners, The 2025 Maryland Legislative Session is in full swing, and I wanted to take a moment to reflect on the significant progress we've made and share the exciting developments ahead. The work we've done together has helped build a strong, resilient small business community in Maryland, and we have a fast-paced year of opportunities for the business community ahead of us.  I am proud to highlight the accomplishments in our 2024 Annual Report—our collective efforts have made an extraordinary impact. For the first time in over a decade, we’ve seen the Minority Business Enterprise (MBE) attainment percentage reach its highest level. This success is a testament to the commitment and perseverance of our small businesses and the collaborative partnerships we’ve built over the years. Procurement is more than a process—it’s a powerful tool for economic transformation. By harnessing its potential, we create jobs, support local communities, and cultivate generational wealth. We are honored to be trusted stewards of Maryland’s socioeconomic programs, and we approach this responsibility with humility, passion, and resolve. Our inaugural MBE Ombudsman Unit has already recaptured $4.9 million for minority businesses, and we’ve seen an incredible surge in Veteran-Owned Small Business (VSBE) awards—up 249% from FY23 to FY24, nearly doubling our goals. As we move forward, Executive Order 38 “Delivering a More Efficient, Equitable, and Competitive Procurement System for Maryland” will continue to shape our landscape, expanding opportunities for small businesses and ensuring greater fairness and transparency in procurement.  This newsletter shares more information about current accomplishments and what’s coming up, and I encourage you to read through to learn about the work that GOSBA is leading. Thank you for your continued support. Sincerely, Y. Maria Martinez

Celebrating Black History Month:

In honor of Black History Month, we celebrate the significant contributions of African Americans throughout Maryland’s history. From the era of enslavement to the Underground Railroad, through the Jazz Age and the Civil Rights movement, the perseverance, courage, and triumphs of African Americans have shaped our state’s legacy. 

Maryland continues to be enriched by their contributions to the arts, sciences, and culture. This month, we invite you to reflect on the lives and achievements of notable figures such as Harriet Tubman, Frederick Douglass, Josiah Henson, Thurgood Marshall, and Lillie Carroll Jackson. Explore ways to honor their legacies through special events and activities throughout February and the year ahead. For more information, Visit Maryland’s Black History Month Celebration.  

Annual Report Highlights: GOSBA is thrilled to share key highlights from the 2024 Annual Report. In 2024, Maryland made significant strides in supporting small and minority-owned businesses.  The Minority Business Enterprise (MBE) attainment percentage reached its highest level in over a decade, reflecting the state’s strong commitment to diversity in procurement. The MBE Ombudsman Unit played a crucial role, successfully recovering $4.9 million for MBEs in its inaugural year, further supporting minority business growth. The Veteran-Owned Small Business (VSBE) awards saw an extraordinary surge of 249% from FY23 to FY24, well beyond our initial goal, which demonstrates the growing recognition of veteran entrepreneurs. Additionally, the vendor database expanded significantly, with a 5% growth in certified MBEs, a 29% increase in Small Business Reserve (SBR) businesses, and a 41% rise in certified VSBE vendors. This expansion highlights the increased diversity of businesses engaged in state procurement. Engagement across our programs also reached new heights. In FY24, a total of 17,823 businesses were engaged through various outreach efforts. These efforts included a 17.5% increase in hosted training and business events, alongside a 63.1% rise in event attendance. This indicates the growing interest and participation of businesses in state programs aimed at fostering growth and opportunities. Finally, the number of unique vendors receiving procurement opportunities has grown significantly. In FY24, 104 certified veteran businesses, 2,400 certified small businesses, and 1,724 certified MBEs benefited from state procurement opportunities, further diversifying the vendor pool and creating more inclusive business opportunities across the state.

Executive Order 38:
A New Era for Maryland Small Businesses

Governor Moore’s Executive Order 38 is a groundbreaking initiative aimed at strengthening Maryland's procurement process. This Executive Order represents a critical step in Maryland’s ongoing efforts to build a more equitable procurement system that not only supports the growth of MBEs and small businesses but also honors the contributions of veteran-owned businesses. With this framework in place, Maryland is poised to offer even greater opportunities for diverse business owners to thrive and succeed. The key provisions include:

• Comprehensive Contract Management: Improvements to contract management and technology will streamline processes and ensure transparency.
• Increased Participation: Expanding opportunities for small and socially and economically disadvantaged businesses, with a focus on MBE and VSBE goals.
• Agency-Level Goals: Establishing agency-specific socioeconomic procurement goals, enhancing accountability across all levels of government and establishing the first Subcabinet on Socioeconomic Procurement Participation in Maryland.
• Procurement Workforce Strengthening: Empowering Maryland’s procurement workforce to better serve our diverse business community.
• HBCU Utilization: Promoting the involvement of Maryland’s Historically Black Colleges and Universities (HBCUs) in state contracts.

This order paves the way for a more inclusive, competitive, and transparent procurement process in Maryland.

Legislative Session:
Procurement Reform Act

The Procurement Reform Act is set to transform the way Maryland approaches procurement. With an emphasis on fostering small business growth, stimulating economic opportunity, and increasing fairness in contracting, key elements of the reform include:

• Socioeconomic Program Integration: Unifying small business and minority business programs under the Governor’s Office of Small, Minority, & Women Business Affairs (GOSBA) to enhance support for these businesses.
• Modernization & Efficiency: Simplifying procurement processes with updated approval thresholds to increase responsiveness.
• Equity in Procurement: Strengthening enforcement tools to ensure greater opportunity for socially and economically disadvantaged groups, including small, minority, women, and veteran-owned businesses.

The Procurement Reform Act is a vital step in modernizing Maryland’s procurement system and ensuring equal access to opportunities for all businesses. To learn more about HB500/SB426, read the bill here. 

We are committed to continuing our work in making Maryland a place where small businesses can thrive. Your engagement and participation are key to our shared success. For more information or to get involved, please visit our website or reach out to our office.

The Greater Washington Partnership has launched the Next Level Small Business Accelerator for its second annual cohort. This free, dynamic 12-week program is designed for small businesses ready to scale and will provide valuable mentorship directly from executives at Partnership board companies. The program will run from late March through June. 

Applications are open until February 19th (or until full) for businesses that operate in the Baltimore to Richmond corridor, provide goods or services relevant to the Partnership’s procurement partners, and demonstrate the ability to scale (with at least $25k in gross revenue, 5+ active employees, and 1-3 years of contracting history with commercial or government entities). Don’t miss this incredible opportunity to grow your business— click here to apply today. 

SMALL BUSINESS EVENTS

Stay connected to the many opportunities for training, networking, and business development that are taking place across Maryland and on virtual platforms. Here is a highlight of some of the events coming up this month.

2/14/2025 - Setting Up A New Business Entity
2/18/2025 - How To Get Conversions On Your Website
2/19/2025 - Five Drivers of Revenue
2/20/2025 - Managing Risk In A Cyber World
2/20/2025 - Cómo Empezar A Vender En La Tienda De Amazon
2/25/2025 - How To Write An Awesome Capability Statement
2/25/2025 - T.I.P.S. Webinar Series: Small Business Finance Basics
2/26/2025 - Borrowing For Small Businesses
2/28/2025 - ISBI Open House & Networking with Resource Partners
3/04/2025 - MBE/DBE/ACDBE/SBE Certification Application Assistance Webinar

Check out the full listing of small business events online at
goMDsmallbiz.maryland.gov.

We Want You! We continually share information curated specifically for small, minority, women, and veteran-owned businesses on our social media channels. We'll inspire you with our #MotivationMonday series and connect you to a broad range of small business resources, events, and training programs. Please join our social media community and follow us on Facebook, LinkedIn, and X.

Leave No One Behind! As a unit of the Executive Department, the Governor's Office of Small, Minority & Women Business Affairs connects members of the small, minority, women, and veteran business communities to greater economic opportunities. Learn more by visiting our website at goMDsmallbiz.maryland.gov and connect with us on Facebook, LinkedIn, and X (formerly Twitter).

*Revised January 2025 Issue.