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Business and bonding forum
Several small businesses in attendance at a Nov. 9 business and bonding forum at the Charles H. Wright Museum of African American History want major companies to open up with regard to bidding opportunities.
The five-hour gathering, organized by the office of Gov. Jennifer Granholm, sought to assist small businesses with information on how to bid on contracts.
Getting bonded, some say, is the most crucial obstacle many small-scale businesses face in competing for major contracts and projects.
“If companies want to do business with small businesses, they need to tell us what their benchmarks are,” said Joan Gist of Gist Enterprise, a consulting and resource firm.
Contracting information, according to Gist, should be posted on the website of companies looking to offer competitive bidding to smaller businesses. Gist cited the Michigan Minority Business Development Council’s application which she said is 11 pages long. Completing that, she said, is tedious, coupled with the 16-page application process Walbridge Aldinger, a construction company in Michigan, requests from applicants vying for contracts. She said since MMBDC certification is a requirement for bidding for contracts, there is no need for a company to engage in duplication of applications requesting the same information that small businesses have already provided to MMBDC. Gist said it is important for small businesses to be informed of what is required so there is no duplication in contract applications.
Some of the participants were asked to identify methods and practices Michigan-based businesses can implement within their business operations to be successful in obtaining commercial insurance and surety bonds.
Some of the respondees coming from various group sessions stated that small businesses seeking to do business with larger companies should have a standard business practice.
When submitting a portfolio, the small businesses are urged to include their financial background, experience in the industry, testimony from a customer and business plan, among other things.
“Larger companies should allow the small business owner to register on their company website and when contracts become available, send out an alert e-mail,” was how one session was concluded. Issues brought up during the sessions included the unavailability of application information. Other participants said small businesses should be trained on how to apply for major contracts and projects.
Odell Jones, president of JOMAR Building Company, one of the city’s successful Black construction companies, applauded Granholm for organizing the event.
“I think the governor has exhibited tremendous courage and leadership by focusing on the issues important to small businesses,” he said. “The state can influence stakeholders for greater access in the marketplace.”
Wayne State University law professor Dana Roach, who directs the law school’s Small Business Enterprises and Nonprofit Corporations Clinic which offers free legal service to small businesses, commented on the importance of the forum.
“This forum provided emerging businesses with invaluable information to obtain public sector contracts to grow their businesses and successfully compete in the marketplace,” Roach said. “The ability to obtain insurance and surety bonds is essential for businesses that want to obtain private sector contracts.”
Roach said some small businesses face obstacles due to critical factors such as bonding required for them to receive contracts often designated for minority companies.
State Sen. Hansen Clarke (D-Detroit), whose office hosted the bonding and business forum, agreed.
“Having the skill, equipment, even the staffing isn’t enough. The business must be able to get the bonding necessary to guarantee that the job will be done,” Clarke said. “This forum provided information on how companies can get insured and bonded which is just as important as getting the contract itself.”
In order for qualified businesses to be awarded contracts, he noted, they need to know how to get the bonding that the government demands.
Daedra Von Mike McGhee, business and civic affairs advisor to the governor, moderated the forum.
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