How MBEs Can Navigate the Changing Political Landscape

Dear MBEs,

As we look ahead to the coming year, the landscape for Minority Business Enterprises (MBEs) is shifting in ways that require both vigilance and proactive adaptation. Recent developments at the federal level have introduced new challenges that we must address head-on.

On January 22, 2025, President Donald Trump’s administration directed all federal employees involved in Diversity, Equity, and Inclusion (DEI) programs to be placed on paid administrative leave, with plans to eliminate these positions by the end of the month.

This directive mandates the closure of all DEI offices and the termination of related initiatives across federal agencies.

This action is part of a broader effort to dismantle DEI programs within the federal government, which the administration has criticized as discriminatory and wasteful. The executive order also aims to end affirmative action in federal contracting, emphasizing a return to “merit-based” hiring practices.

These federal changes mirror recent trends in the private sector, where several major corporations, including Ford, Walmart, and Lowe’s, have scaled back or eliminated their DEI initiatives. This convergence of public and private sector shifts underscores a significant transformation in the support systems that have aimed to benefit MBEs in recent years.

The message we’ve received is clear: we cannot afford to depend solely on programs or government policies to ensure our success.

At the Council, we understand the frustration and concern these developments may cause. It’s natural to feel uncertain when support systems evolve or diminish. However, it is precisely in these moments that MBEs must rise to the challenge.

The reality is that certification as a Minority Business Enterprise has never guaranteed success. A certification might open doors, but it is the quality of your product or service that keeps those doors open. It is your work ethic, innovation, and ability to deliver exceptional value that will sustain and grow your business in any environment. As we reflect on the lessons of the past and face the realities of the present, this truth has never been more critical.

For the year ahead, I urge MBEs to focus on the following:

  • Excellence in Delivery: Ensure your products and services meet and exceed the expectations of your clients. Quality will always be your most reliable advocate.
  • Adaptability: Markets evolve, and customer needs change. Stay attuned to these shifts and position your business to address emerging opportunities.
  • Building Relationships: Cultivate strong relationships with clients, partners, and stakeholders. Trust and credibility are earned through consistency and results.
  • Strategic Investment: Invest in your business—whether it’s through technology, training, or expanding your network. Be prepared to compete and excel in any economic climate.
  • Advocacy and Unity: While individual effort is essential, collective action remains powerful. Engage with organizations like the NY & NJ Minority Supplier Development Council to ensure your voice is heard and your interests are represented.

The political and economic landscape may shift, but the principles of good business remain constant. Let’s commit to building enterprises that are not only minority-owned but also universally respected for their excellence and impact. By focusing on what we can control—the quality of our work and the strength of our business practices—we will not only survive but thrive, regardless of external challenges.

Rounded T. Clark Headshot

Sincerely,

Terrence Clark