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Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program (2019)

Chapter: Appendix C - Qualitative Information from Disparity Studies Regarding Keys to Business Success

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Suggested Citation:"Appendix C - Qualitative Information from Disparity Studies Regarding Keys to Business Success." National Academies of Sciences, Engineering, and Medicine. 2019. Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program. Washington, DC: The National Academies Press. doi: 10.17226/25538.
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Suggested Citation:"Appendix C - Qualitative Information from Disparity Studies Regarding Keys to Business Success." National Academies of Sciences, Engineering, and Medicine. 2019. Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program. Washington, DC: The National Academies Press. doi: 10.17226/25538.
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Suggested Citation:"Appendix C - Qualitative Information from Disparity Studies Regarding Keys to Business Success." National Academies of Sciences, Engineering, and Medicine. 2019. Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program. Washington, DC: The National Academies Press. doi: 10.17226/25538.
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Suggested Citation:"Appendix C - Qualitative Information from Disparity Studies Regarding Keys to Business Success." National Academies of Sciences, Engineering, and Medicine. 2019. Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program. Washington, DC: The National Academies Press. doi: 10.17226/25538.
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Suggested Citation:"Appendix C - Qualitative Information from Disparity Studies Regarding Keys to Business Success." National Academies of Sciences, Engineering, and Medicine. 2019. Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program. Washington, DC: The National Academies Press. doi: 10.17226/25538.
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Suggested Citation:"Appendix C - Qualitative Information from Disparity Studies Regarding Keys to Business Success." National Academies of Sciences, Engineering, and Medicine. 2019. Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program. Washington, DC: The National Academies Press. doi: 10.17226/25538.
×
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Suggested Citation:"Appendix C - Qualitative Information from Disparity Studies Regarding Keys to Business Success." National Academies of Sciences, Engineering, and Medicine. 2019. Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program. Washington, DC: The National Academies Press. doi: 10.17226/25538.
×
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Suggested Citation:"Appendix C - Qualitative Information from Disparity Studies Regarding Keys to Business Success." National Academies of Sciences, Engineering, and Medicine. 2019. Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program. Washington, DC: The National Academies Press. doi: 10.17226/25538.
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Suggested Citation:"Appendix C - Qualitative Information from Disparity Studies Regarding Keys to Business Success." National Academies of Sciences, Engineering, and Medicine. 2019. Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program. Washington, DC: The National Academies Press. doi: 10.17226/25538.
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Suggested Citation:"Appendix C - Qualitative Information from Disparity Studies Regarding Keys to Business Success." National Academies of Sciences, Engineering, and Medicine. 2019. Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program. Washington, DC: The National Academies Press. doi: 10.17226/25538.
×
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Suggested Citation:"Appendix C - Qualitative Information from Disparity Studies Regarding Keys to Business Success." National Academies of Sciences, Engineering, and Medicine. 2019. Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program. Washington, DC: The National Academies Press. doi: 10.17226/25538.
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Suggested Citation:"Appendix C - Qualitative Information from Disparity Studies Regarding Keys to Business Success." National Academies of Sciences, Engineering, and Medicine. 2019. Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program. Washington, DC: The National Academies Press. doi: 10.17226/25538.
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Suggested Citation:"Appendix C - Qualitative Information from Disparity Studies Regarding Keys to Business Success." National Academies of Sciences, Engineering, and Medicine. 2019. Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program. Washington, DC: The National Academies Press. doi: 10.17226/25538.
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Suggested Citation:"Appendix C - Qualitative Information from Disparity Studies Regarding Keys to Business Success." National Academies of Sciences, Engineering, and Medicine. 2019. Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program. Washington, DC: The National Academies Press. doi: 10.17226/25538.
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Suggested Citation:"Appendix C - Qualitative Information from Disparity Studies Regarding Keys to Business Success." National Academies of Sciences, Engineering, and Medicine. 2019. Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program. Washington, DC: The National Academies Press. doi: 10.17226/25538.
×
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Suggested Citation:"Appendix C - Qualitative Information from Disparity Studies Regarding Keys to Business Success." National Academies of Sciences, Engineering, and Medicine. 2019. Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program. Washington, DC: The National Academies Press. doi: 10.17226/25538.
×
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Suggested Citation:"Appendix C - Qualitative Information from Disparity Studies Regarding Keys to Business Success." National Academies of Sciences, Engineering, and Medicine. 2019. Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program. Washington, DC: The National Academies Press. doi: 10.17226/25538.
×
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Suggested Citation:"Appendix C - Qualitative Information from Disparity Studies Regarding Keys to Business Success." National Academies of Sciences, Engineering, and Medicine. 2019. Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program. Washington, DC: The National Academies Press. doi: 10.17226/25538.
×
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Suggested Citation:"Appendix C - Qualitative Information from Disparity Studies Regarding Keys to Business Success." National Academies of Sciences, Engineering, and Medicine. 2019. Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program. Washington, DC: The National Academies Press. doi: 10.17226/25538.
×
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Suggested Citation:"Appendix C - Qualitative Information from Disparity Studies Regarding Keys to Business Success." National Academies of Sciences, Engineering, and Medicine. 2019. Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program. Washington, DC: The National Academies Press. doi: 10.17226/25538.
×
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Suggested Citation:"Appendix C - Qualitative Information from Disparity Studies Regarding Keys to Business Success." National Academies of Sciences, Engineering, and Medicine. 2019. Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program. Washington, DC: The National Academies Press. doi: 10.17226/25538.
×
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Suggested Citation:"Appendix C - Qualitative Information from Disparity Studies Regarding Keys to Business Success." National Academies of Sciences, Engineering, and Medicine. 2019. Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program. Washington, DC: The National Academies Press. doi: 10.17226/25538.
×
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Suggested Citation:"Appendix C - Qualitative Information from Disparity Studies Regarding Keys to Business Success." National Academies of Sciences, Engineering, and Medicine. 2019. Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program. Washington, DC: The National Academies Press. doi: 10.17226/25538.
×
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Suggested Citation:"Appendix C - Qualitative Information from Disparity Studies Regarding Keys to Business Success." National Academies of Sciences, Engineering, and Medicine. 2019. Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program. Washington, DC: The National Academies Press. doi: 10.17226/25538.
×
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Suggested Citation:"Appendix C - Qualitative Information from Disparity Studies Regarding Keys to Business Success." National Academies of Sciences, Engineering, and Medicine. 2019. Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program. Washington, DC: The National Academies Press. doi: 10.17226/25538.
×
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Suggested Citation:"Appendix C - Qualitative Information from Disparity Studies Regarding Keys to Business Success." National Academies of Sciences, Engineering, and Medicine. 2019. Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program. Washington, DC: The National Academies Press. doi: 10.17226/25538.
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83 Introduction and Methodology The study team analyzed results of in-depth interviews and other qualitative information for DBEs reported in 19 state DOT disparity studies conducted from 2007 through 2018. The qualitative information was from review of anecdotal interviews from state DOT dispar- ity studies with individuals representing construction, professional services, goods, and other services businesses in the states of Alaska, Arizona, California, Colorado, Georgia, Hawaii, Idaho, Illinois, Indiana, Maryland, Minnesota, Missouri, Montana, Nevada, North Carolina, Ohio, Oklahoma, Oregon, and Washington. Most of the analyses in the disparity studies were performed by Keen Independent Research and some were performed by other consultants. The interviewees include some of the successful DBEs identified in this NCHRP study. Other comments come from firms with DBE or other certifications that, from their interviews, appeared to be similar to those identified as successful in the present study. Business owners interviewed for disparity studies were often quite specific in their comments. As a result, they were reported in more general form in these disparity studies to minimize the chance that readers could easily identify them. Each business comment represents a certified business and also reports the race/ethnicity and gender of the business owner, when possible. Business owners are identified by letters representing the corresponding disparity study in which their comments appear (i.e., AZ-I1, MN-I2, NV-I3, etc.); page number in which they appear within the disparity study further identifies interviewees (i.e., NC-I129, NC-I131, etc.). A number of pervasive barriers to business success exist according to many business repre- sentatives providing anecdotal evidence in state DOT disparity studies. Access to capital, access to bonding and insurance, timeliness of payments by the prime or public entity, stereotypes, certification stigma, explicit discrimination, and other factors (Premier Quantitative Consult- ing 2016) are challenges often experienced by certified firms and can inhibit business success or result in business failure. Based on the qualitative information provided by many “successful” firms, it is apparent that the major factors to business success, among others, are business and industry experience, access to capital, certification status, development of business relationships, and hiring of qualified employees. Background on the Firm and Industry Comments included were from “successful” certified business owners and others report- ing on their business histories including geographic scope, type of work performed, business expansion, size of contracts, opportunities to bid on projects, economic conditions, certifica- tion programs, and other key factors and their relationships to business success. A P P E N D I X C Qualitative Information from Disparity Studies Regarding Keys to Business Success

84 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program Business Start-Up History Many owners of certified businesses reported that their companies were started by individuals with prior experience and/or longevity in their respective industries. (In addition to the com- ments below, more than 150 other interviewees said that experience in their respective industry is a key to success.) Comments include the following: • The white female owner of a DBE- and WBE-certified specialty contracting business reported that she worked in related industries and gained relevant experience prior to starting her firm. [OR-I42] • An African American male owner of an MBE-certified specialty contracting firm indicated that he was always interested in doing construction. He reported, “My wife’s family owned a construction company . . . and I actually did stuff with them. . . . I worked on various things for them. I’ve always been around it.” He added that because of the work he did with his wife’s family business, he was always comfortable in the construction business. [IN-I22] • A Subcontinent Asian American male owner of a DBE/SBE/MBE-certified professional services firm reported having many years of experience in his chosen industry. [AZ-I9] • The Hispanic American male representative of a DBE-certified firm reported that his company has been in the ownership of his family for its entire history. [CA-I51] • A white female owner of a DBE-certified specialty contracting firm reported related experi- ence in her industry as well as working as a teacher previously for many years. [NV-I30] • The white male general manager of a white woman-owned specialty contracting firm reported that he had approximately 10 years of prior experience in the industry. [WA-I18] • The Hispanic American male owner of a professional services firm reported that his exposure to business principles through other jobs contributed greatly to his success. [IN-I43] • The white female owner of a DBE-certified professional services firm reported that she was a practicing design professional for 4 years before starting her own firm. [MT-I26] • The white female owner of a WBE- and DBE-certified professional services firm reported that she has been in the industry for many years. [IN-I73] • The African American male owner of a DBE-certified construction firm that also holds HUB Zone, Veteran and SBA 8(a) certifications, said that he had been around or had worked in the construction industry most of his life before establishing his own company. [OH-I4] • The Hispanic American male owner of an MBE/DBE-certified construction firm commented, “I was a [specialty construction worker] for nearly 20 years. . . . I was bored and needed to do something else, so I started a [company] in the 2000s.” [IL-I56] • The white male owner of a surveying firm said he “came out of a larger engineering multi- disciplinary firm” and “saw the need [for] a standalone surveying firm” prior to starting his own company. [OH-I13] • The white female owner of a DBE- and EDGE-certified electrical engineering company said that she worked in the construction industry before starting her business. [OH-I1] • The African American male owner of an MBE/DBE/SBE/VOSB-certified specialty contract- ing firm reported that he started his firm in the late 1990s. He said, “After running majority- owned companies . . . it was time for me to do it myself. . . . We have grown from just being an $800,000-a-year company to where we are averaging about $12 million a year.” [IL-I10] • The business manager of a DBE-certified Subcontinent Asian American-owned materials test- ing firm said that the company was started after the owner had worked for other large testing firms. [OH-I40] • The African American female owner of a DBE- and EDGE-certified architecture and engi- neering firm said she worked in and had relationships in the industry prior to opening her own businesses. [OH-I3] • The Native American male owner of a professional services firm said he started his business 5 years ago after working in the industry for many years. [OH-I8]

Qualitative Information from Disparity Studies Regarding Keys to Business Success 85 • The white female owner of a DBE/WBE/SBE/TGB-certified professional services firm reported that before starting the business she was a computer programmer. She indicated that she knew that she wanted to run her own business, so she started her firm with her husband and one other individual, “and [they] just jumped into it.” [MN-I48] The same business owner added that her husband is an engineer and always wanted his own business. She commented that she knew early on that her husband would need someone with some “business acumen” to help run the business, so she went to school and earned an MBA. [MN-I48] • The white female owner of a WBE-certified construction-related firm reported having a similar business and relevant experience prior to starting her current firm with her husband. [NV-I39] • The Hispanic American male owner of a DBE/CERT/TGB/SBA-certified professional services firm said that before he started his firm he had worked for a large consulting firm for over 20 years. [MN-I43] The same business owner added that he learned about the DBE program, and since that time the company “graduated” from the program. [MN-I43] • An African American male owner of a DBE- and MBE-certified specialty contracting firm reported that he had experience in the industry before he and his partner started the business. [OR-I46] • A female owner of a DBE-certified firm said that she worked for a large consulting firm before deciding to start her own business. She said, “I decided to just go ahead and work for myself, because I figured there was no reason not to try. That was over 15 years ago. I’m still in business.” [ID-I2] • An African American male owner of a DBE/MBE-certified and formerly (outgrown) ESB- certified specialty contracting firm indicated that his business grew out of a construction project that he had started on his own. He said that others noticed his skills and encouraged him to start his own firm. [OR-I49] • The African American male owner of a DBE-certified construction firm reported that he started his firm nearly 20 years ago. [IL-I54] • The Hispanic American male owner of an MBE/DBE-certified specialty contracting firm reported that the business started over 40 years ago. [IL-I19] • A male representative of a woman-owned DBE-certified firm reported that the business owner started her firm in the early 2000s, and commented, “[They’ve] had contracts with the [Army] Corps [of Engineers] ever since.” [ID-I3] • The white female owner of a DBE-certified specialty contracting company remarked that she had previous experience in her industry. She said, “My father was in construction all of his life, so I grew up around construction.” [WA-I12] • The male owner of a DBE-certified firm said he started his construction and goods-related business many years ago. He reported that in the late 1980s, he purchased 10 acres of land, set up his office and expanded his work into related industries. [ID-I20] • The female representative of a DBE-certified construction-related firm said that the firm was started by her mother over 30 years ago. She said, “She has built this business into an amazing legacy. She has expanded her education immensely and has worked hard to build this busi- ness.” She added that her mother was working in construction and saw a need and grew the business from there. [ID-I17] • The Native American female owner of a DBE-certified contracting business said that she had considerable prior experience in her industry. [MT-I35] • A male owner of a DBE-certified firm said that he owns the firm in partnership with his brother. He added that they both worked at the firm under the founding owner. Following the owner’s death, he said they purchased the company and have been running it since the mid-1990s. [ID-I1]

86 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program • A white female owner of a WBE/DBE-certified construction firm reported that she had “extensive” experience in the industry. She said that she started her own firm after recogniz- ing a need for DBEs in the industry. [IL-I35] Types of Work Performed and Diversification of Work Successful business owners and representatives discussed the types of work that their firms perform. Some indicated that breadth in the types of work performed increases the chances of business success. In addition to the comments below, more than 70 other firms concurred that diversification of work performed is a factor to success. For example: • The white female owner of a DBE-certified design firm reported that her firm performs a wide variety of work which contributes to her ability to succeed in her industry. [MT-I26] • The immigrant male co-owner of an EDGE-certified engineering firm said the company has the ability to perform different types of contracts. He stated, “The company specialized in surveys when it began 100 years ago. Over the years, services have expanded to include engi- neering, construction management, right of way easement, acquisition, utility relocation, and construction inspection. The company still provides survey services.” [OH-I2] • The white female owner of a WBE/DBE-certified specialty contracting firm commented, “In terms of history, we started out particularly with the [specialty contracting]. We have since expanded. We actually . . . work both as a prime contractor and as a subcontractor. . . .” [IL-I53] • The white male representative of a DBE-certified woman-owned construction firm reported that the firm grew from a small specialized company in the 1970s to a larger construction- related firm over time. [IL-I18] • The Hispanic American male owner of an MBE/DBE-certified specialty contracting firm com- mented that his firm had many “facets” of work that changed considerably over time. [IL-I19] • The Hispanic American male owner of a DBE- and EDGE-certified survey firm said that the company performs primarily as a subconsultant on public sector work though they have per- formed as a prime on some projects. In addition to private sector work, he said the company does business with several municipalities, universities and schools, and the state DOT. He added that approximately 70% of the firm’s business is in the public sector, and noted, “The size of a project does not matter to us. We can do the work.” [OH-I56] • When asked about being competitive in his line of business, a male owner of a DBE-certified firm indicated that diversity of services is important to being competitive. He said that a competitor has grown larger than his company, though his firm is more diverse. He added, “He can try to corner the market, but we’re going to hang in there because we’ve got lots of other things we do.” [ID-I1] • A white male representative of a DBE/MBE/SBE/WBE-certified contracting firm owned by a Hispanic American female reported that the firm started with small jobs in order to make a name for themselves in the industry, and to establish themselves in the community. One large, commercial project in particular pushed their company forward and put them “on the map, in the community.” [IN-I3] • The white male general manager of a white woman-owned specialty contracting firm indi- cated that the firm developed new products that resulted in business growth. [WA-I18] • When asked about changes to the types of work that his company performs, the African American male representative of a DBE- and MBE-certified construction business reported, “It has changed dramatically. . . . We moved from residential to more commercial and . . . federal projects. . . .” [OR-I49] • The white female owner of a DBE/SBE/WBE/TGB-certified professional services firm indi- cated that the firm is a civil design company. She stated that they performed residential work when they started the firm but have since transitioned to the transportation industry. [MN-I48]

Qualitative Information from Disparity Studies Regarding Keys to Business Success 87 The same business owner indicated that they started out with three employees and now have 38 employees. She further mentioned that their growth has been “slow and controlled.” [MN-I48] • The white female owner of a WBE-certified professional services firm reported that the type of work they do has changed over time. She said, “It changes with the economy. . . . We have to be flexible.” [IN-I30] • The Hispanic American male owner of an MBE/DBE/MUCB/CERT/TGB-certified profes- sional services firm said that he envisioned that the firm would be based mostly on specialty engineering, though they are doing more work in construction and inspection. During winter slowdown, he added, the firm moves to mostly design work. [MN-I43] • A Subcontinent Asian American owner of a DBE- and MBE-certified professional services and contracting firm said that they started the business as a consulting firm. The owner added that they expanded due to market demand and growing business relationships, and that they also started a companion services firm as well as general contractor services firm. [IN-I74] • The business manager working at a DBE-certified Subcontinent Asian American-owned materials testing firm said that when the housing market declined in 2008, the company con- centrated more on soil and materials testing for mainly concrete and soils for compaction. [OH-I40] The same business manager said that although the housing market is starting to return, the firm itself is now specialized and staffed for highway construction needs, so it is no longer pursuing housing work. [OH-I40] • The white female owner of an EDGE-certified guardrail and lighting firm reported that she has added traffic signals and lighting to the company’s offerings. [OH-I15] • The male co-owner of an EDGE-certified engineering firm said, “The company specialized in surveys when it began. Over the years, services have expanded to include engineering, con- struction management, right of way easement, acquisition, utility relocation and construction inspection.” [OH-I2] • The African American female owner of a DBE- and EDGE-certified heavy highway construc- tion firm shared that the company originally provided catch basins, curbs, and gutters. Her company now specializes in asphalt paving, milling, trucking, and material sales. [OH-I49] • The African American female owner of a DBE- and EDGE-certified architecture and engi- neering firm said, “Because of the lack of surveying work, we added additional services.” [OH-I3] Sizes of Contracts Performed by Successful Firms Many successful business owners discussed their ability to perform a wide range of contract sizes, or indicated that they have a target amount that they can perform successfully. In addi- tion to comments below, over 100 firms reported that they are able to perform a wide range of contract sizes that add to their ability to compete and succeed in the marketplace. • The white female owner of a DBE-certified specialty contracting company commented, “[The company bids on jobs ranging] from $25,000 to $1 million. . . .” [WA-I12] • The white female owner of a DBE-certified specialty construction firm reported that they do not have a strict limit to the size of contracts they perform. She added, “We don’t take $1 million contracts, but we take $100,000.” [IL-I17] • The female owner of a DBE-certified firm, when asked about sizes of contracts they bid or propose on, stated that the low range is $25,000 and the high range is around $1.5 million. [ID-I15] • The white male manager of an Asian-Pacific American-owned DBE-certified specialty con- tracting firm reported that the firm’s contracts range from $200 repair jobs to $2 million projects. [MT-I22]

88 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program • The white female owner of a DBE/WBE/SBE/TGB-certified professional services firm reported that her firm performs on projects ranging from $1,500 to $4 million on multi-phase projects. [MN-I48] • The African American male representative of a DBE- and MBE-certified construction busi- ness reported that his firm performs projects ranging from $5,000 to $5 million. [OR-I49] • The Hispanic American owner of an MBE-certified contracting firm stated, “We do any- thing from what I call service work, which might be a few hundred dollars, up to our largest project [of] $10 million . . . a big range. Our niche is in the low $0.1 million to $3 [million], [or] 5 million.” [IN-I13] • A white female owner of a WBE- and DBE-certified contracting firm reported working in a wide range of contracts. [IN-I55] • The white female owner of a DBE- and WBE-certified specialty contracting business remarked that the firm is established and she bids jobs that she can afford. She also reported having a line of credit that helps when trying to meet the weekly payrolls. [OR-I42] Geographic Scope of Work Many business owners concurred that the success of their business is based on an owner’s ability to perform in a wide geographic area. More than 75 firms, in addition to those below, reported operating in varied locations. Some reported that they are willing to travel long dis- tances for work. For instance: • An African American male owner of a DBE- and MBE-certified specialty contracting firm reported working in the northern and central parts of the state. [OR-I46] • Regarding a wide geographic scope of their work, the white female owner of a DBE-certified consulting firm reported that the majority of their work is in two states. [MT-I29] • The female representative of a DBE-certified firm explained that they restructured to make the business more profitable. She went on to say that the southeast part of the state is the primary focus of the business, though they also do work elsewhere in the state and Wyoming. [ID-I7] • The male owner of a DBE-certified firm reported that he has traveled up to 300 miles for work. However, he noted that recently his firm has become more localized. [ID-I27] • The Hispanic American male owner of a DBE-certified professional services firm reported that his firm tends to pursue work with people they know. He said they have had work in Rochester, Winona, and also River Falls, Wisconsin due to relationships in those areas. [MN-I43] • The white male manager of an Asian-Pacific American-owned DBE-certified specialty con- tracting firm reported that the firm works all over the state. [MT-I22] • A white female owner of a DBE-certified construction firm indicated that they perform work all over the state, though they prefer to stay in the eastern part of the state. [MT-I30] • An African American male owner of an MBE-certified specialty contracting firm said that size of work and geographic areas have expanded since they started. He commented that they have more confidence now to go after jobs in new areas including out-of-state. [IN-I22] • The Native American female owner of a DBE-certified contracting business reported that she performs in a wide geographic area. [MT-I35] • The female owner of a DBE-certified firm said that the majority of their projects are con- ducted out-of-state in locations like California, Nevada, and Oregon. [ID-I15] • The white female owner of a DBE-certified professional services firm mentioned that she gets business from out-of-state companies with Indiana locations, and Indiana companies with locations in other states. She noted that this requires her to keep up with Indiana and other states’ laws. [IN-I5]

Qualitative Information from Disparity Studies Regarding Keys to Business Success 89 Business Expansion or Contraction over Time The ability to periodically expand and contract their businesses based on seasonal or eco- nomic conditions is a major factor in business success according to over 125 business owners. Comments include: • The African American male president of a DBE- and MBE-certified construction business reported that the size of his firm fluctuates based on market conditions. [OR-I49] • The Hispanic American male owner of a DBE/MBE/EDGE-certified survey firm said that his company has seen changes in the number of employees as well as sales volume. He went on to say that his business has grown from 10 employees to 30 employees. [OH-I56] • The African American female owner of a DBE- and EDGE-certified heavy highway construc- tion company said, “Based on contracts and volume, the company expands or contracts. Traditionally, we average from 100 to 110 jobs a year. So, April through November we are very busy.” [OH-I49] • The African American male owner of a DBE/EDGE/SBA 8(a)-certified general contracting firm said, “Depending on how much work we have, we go to the union and we have to get people from the union. We have to downsize if we don’t have that much work. If we need more people, we go to the union.” [OH-I31] • The African American male owner of an MBE/DBE-certified veteran-owned specialty con- tracting firm reported that he usually employs “six or seven.” He added, “I go up to what- ever the project allows . . . [sometimes] 10 or 12.” [IL-I11] • The Subcontinent Asian American male owner of a DBE/MBE/MWRD-certified engineering firm said that his firm hires subcontractors when necessary. He stated, “We have two full-time and two part-time employees right now . . . and eight contractors that help me on the jobs.” [IL-I7] • The African American male partial owner of a DBE-certified construction firm stated that the company has “seven to 23 staff members, on and off,” depending on the project. [IL-I1] • The white female owner of a WBE/DBE-certified construction firm reported that she has four employees, though depending on the project she increases her staff. She said that DOT projects require her to hire up to 20 employees. [IL-I59] • The white male manager of an Asian-Pacific American-owned DBE-certified specialty con- tracting firm reported that while the firm has grown, it has had “slowdowns” due to the economy, though it is now picking up again. [MT-I22] • A representative of a DBE-certified construction firm reported that the company tradition- ally contracts in the winter; they lay off employees who draw unemployment during this time, though they come back when the weather is warmer. [MT-I30] • A Subcontinent Asian American male owner of an MBE-certified professional services firm reported that they have been able to sustain 25 employees, which has allowed the firm to per- form more work. He stated, “We are increasing the ability to take on more work and size[s] of jobs. . . .” [IN-I49] Economic Conditions There is agreement among over 100 business owners and business representatives that their perception of the current economy is positive and they are able to weather economic downturns when they arise, which is a key factor to their business success. Examples include the following: • The African American male representative of a DBE- and MBE-certified construction business reported, “During the economic downturn, I felt like I was a little lucky. . . . I was working a lot for the federal government, and I also had contracts out in front of me at that time.

90 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program And, I made some strategic moves, which I was anticipating. . . . I had purchased all my equip- ment outright.” [OR-I49] The same business owner went on to comment that 2009 and 2010 were ultimately his best years; he reported that his gross revenue was $12 million during that time. [OR-I49] • The Hispanic American male partial owner of a DBE-certified construction-related firm remarked that the business is currently doing well and was doing well during the economic downturn. [AZ-I29] • The white female owner of a DBE-certified specialty contracting company commented, “I haven’t observed any changes [in the marketplace] this year. I have been [hearing] this now for 2 years, that the economy is falling, but my [company’s] work has remained the same.” [WA-I12] • The male owner of a DBE-certified firm reported that he stayed busy by working for someone else during the recession and thus didn’t really see any negative effects. He commented that his business is currently doing well, and said, “It’s just getting better and better I think. . . .” [ID-I27] • A white female owner of a DBE-certified construction firm stated that they did not experience any effects of the economic downturn because the business was still new, and they were “still getting their feet wet” at the time. [MT-I30] • The white male general manager of a white woman-owned specialty contracting firm reported that to weather a bad economy, the firm managed costs and maintained a workforce that was well-trained. [WA-I18] • The Native American female owner of a DBE-certified contracting business reported that she did not see a big change in work when the economy had a downturn. [MT-I35] • Regarding surviving the recession of 2008, a Hispanic American female owner of an MBE- and WBE-certified professional services firm said, “Fortunately, we had seen the handwriting on the wall and had started to diversify our business into [other sectors].” [IN-I7] • A Subcontinent Asian American owner of a professional services firm said, “I . . . consider myself blessed. There are still some challenges here and there . . . but it’s still better than . . . years ago.” [IN-I21] • The white female owner of a specialty contracting firm said that they were not really affected by the recession. She said, “Basically [it’s] because budgets had already been established with municipalities and they still have an obligation to their clients, the residents, to maintain the sewer systems. If something fails or people get backups in their basement and there’s sewage all over the place, people don’t care if there’s a recession or not. They want it fixed, now.” [OH-I22] Relationship-Building, Reputation, Customer Service, and Quality Work Approximately 200 business owners identified reputation and quality of work, business longevity, and building good business relationships with customers and others as key compo- nents to the success of their businesses. Comments include: • A male representative of a woman-owned and DBE-certified firm reported that achieving business success is a combination of making personal visits and providing excellent job per- formance to generate repeat business. He explained, “It’s the relationships that help us be successful . . . it’s building that relationship with the client. . . .” [ID-I3] • The Native American male owner of a professional services firm said, “Relationships are key. Our service is one of trust. Architects have to trust that we understand the project and can deliver.” He added, “It should have nothing to do with your gender or race, but be based on the quality of your products and services. If you can provide quality service, get contracts

Qualitative Information from Disparity Studies Regarding Keys to Business Success 91 awarded and people get jobs out of it, what else is there? To me, that’s being competitive. That’s really the nuts and bolts of it.” [OH-I8] • The African American male representative of a DBE/MBE-certified construction firm reported that relationships with customers are important to his business success. [OR-I49] • The female owner of a DBE/MBE-certified construction-related firm commented that making her customers happy and doing good work is a key factor to her success. [AZ-I64] • A white female owner of a WBE/DBE-certified construction firm commented, “We are very client-focused. Whether one likes it or not, the customer is always right. If they are not right, you are probably going to lose them. . . . We listen very intently to what the customer has to say. I think we have a very high rate of satisfaction. . . . We do our best to solve any issue.” [IL-I53] • The minority female owner of a WBE/DBE-certified professional consulting firm stated, “Our relationship with our clients is excellent. We like them [and] they like us, and our experience. . . .” [IL-I15] • An African American male owner of a DBE-certified construction firm reported, “Ninety percent of my clients call back. . . . I have had a good working relationship with a lot of them.” [IL-I54] • The Hispanic American male owner of an MBE/DBE-certified construction firm reported, “We are one of the preferred contractors. . . . And how we do business, we are not the cheapest, but we are definitely preferred because of the customer service we give.” [IL-I56] • An African American male owner of an MBE/DBE-certified consulting firm stated, “I think most important is that you have to put the client first.” He added, “I think as long as you keep that in mind . . . to demonstrate to the client that that is your primary focus, [you will succeed].” [IL-I12] • When asked about relationships with customers, the African American male owner of an MBE/DBE-certified veteran-owned specialty contracting firm commented, “I put my customers before me. All I want to do is give them the best that I have to offer.” [IL-I11] • The Subcontinent Asian American male owner of an MBE/DBE/MWRD-certified engineer- ing firm discussed relationship-building. He said, “For smaller firms it is really hard to sustain [relationships] because we have to have repeat work, or we have to have work all the time. . . . The key is to have more than one client. So right now, I have seven or eight clients. So, if the work dries up, I can always go to different clients and help them.” [IL-I7] The same business owner went on to say, “First comes the experience. Clients value experience . . . so once they know you are capable of handling the work [and are] quali- fied, that is a big plus sign. And then, you can add more staff with more qualifications. So, I think [what’s] key is qualifications and experience, both [of] these things go hand in hand.” [IL-I7] • Regarding good customer service as a key to success, a female owner of a DBE-certified firm said that when a client calls, “[They] know [we] jump through hoops for them.” [ID-I21] • An African American male owner of an MBE/DBE-certified consulting firm commented, “[For success you] need to have some experience, and that is the ‘catch.’ You know, how do you break into the marketplace? You also need to have someone who is willing to say that they know you, because if you do not have any experience and they do not know you, it is really tough. I think that you have to start somewhere. . . .” [IL-I12] • The African American male owner of an MBE/DBE-certified veteran-owned specialty con- tracting firm stated that his keys to success are “hard work and staying mindful of what [he does].” He added that “taking care of other people” is also important. [IL-I11] • A Hispanic American female owner of an MBE- and WBE-certified professional services firm indicated that relationships and knowing the key decision makers are important to business success. She added, “It’s important to build a relationship with them and [to] make sure they understand your business, what you offer and what can help their company or orga- nization.” [IN-I7]

92 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program • When asked what it takes for a firm to be competitive in her line of work, the female owner of a DBE-certified firm said that useful services, focused expertise, a good team, and a respected reputation are all key factors. [ID-I5] • A female business owner, regarding the importance of relationships as a key to obtaining work as a subcontractor, said, “The firms have their relationships with other subconsultants they feel comfortable with.” [NC-I129] • The white female owner of a specialty contracting firm said that her firm has established good working relationships with other contractors that they work with on DOT projects. She added, “As a result, I know what they’re expecting of me. . . . I think the key is relationships with your contractor and effective communication.” [OH-I22] • The white female owner of a DBE-certified professional services firm said that keys to suc- cess in her business are “technical competence, understanding the contracting procedures, knowing where to get information to bid the contracts, and how to be compliant with those contracts throughout execution.” She added that the other big thing is “schedule, schedule, and schedule.” She stated that to be successful as a subcontractor, “You have to have a track record.” [OH-I1] • The Hispanic American male partial owner of a DBE-certified construction-related firm reported that the firm develops good relationships with their customers. [AZ-I29] • The Asian-Pacific American male owner of a DBE/SBE-certified professional services firm reported that relationships and doing good work are key factors to his firm’s success. [AZ-I21] • The white female owner of a specialty contracting firm mentioned that reputation built on relationships is very important. She said, “I have people that call no one else, and they’ll tell me, ‘I’ve never called anyone else. What can you do for me here? Let’s get this job done.’ And [then] you try to really bust your butt to do that for them.” [IN-I8] • A white female owner of a WBE- and DBE-certified contracting firm reported that develop- ing business relationships is key to business success. [IN-I55] • The Native American female owner of a DBE-certified contracting business said that they have been in the business for a while, do a good job, and people know that they can complete the work. [MT-I35] • The white male manager of an Asian-Pacific American-owned DBE-certified specialty con- tracting firm reported that a good reputation in the industry and ability to perform the work are keys to the firm’s success. [MT-I22] • A Hispanic American male owner of an MBE/DBE/MUCB/CERT/TGB-certified professional services firm reported that several factors have contributed to his firm’s success, including hard work, persistence, flexibility, and willingness to provide the services that come their way. [MN-I43] • When asked what gives one firm an advantage over another, the white female owner of a DBE/SBE/WBE/TGB-certified professional services firm replied, “Reputation and relation- ships, I think, probably is . . . a big factor.” [MN-I48] The same business owner commented that it took 7 or 8 years before their firm became recognized. She said, “You have to have your name out there. A lot of counties will just pick . . . [and say], ‘We’re going to send this proposal to three or four people.’ So, if you aren’t . . . on their mind, you’re not going to get the proposal.” [MN-I48] • An African American male business owner reported that he perseveres and avoids barriers to success. He said, “I will say there [are] barriers, but you can get through those just by being the businessperson . . . the best you can be.” [MD-I4832] The same business owner added, “Service is number one. You got to be a people person and know when you’re not. When people just don’t want your service . . . don’t take it personally. Just keep moving.” [MD-I4832]

Qualitative Information from Disparity Studies Regarding Keys to Business Success 93 A number of business owners noted the importance of ethics, honesty, and doing “the right thing.” Comments follow: • An African American female owner of an MBE- and WBE-certified professional services firm said, “Relationships with customers is huge . . . relationships with customers [is] essential. I find that the more honest I am with my clients, the stronger my work has become. . . . I am able to be more candid with them and develop stronger relationships with them. I am [an] exten- sion of them. I am a part of their team and they are helpful to me with my business.” [IN-I2] • The white male representative of a DBE-certified woman-owned construction firm stated that “good [leadership], good ideas [and] honesty” are keys to the company’s success. He added that “[truthfulness] and good work on the job site” are also important. [IL-I18] • An African American male owner of a DBE-certified construction firm commented that “working hard [and] trying to do the right thing” is a key factor to his firm’s success. [IL-I54] • The African American male owner of a construction company said he believes the keys to business success in his industry are “communication, quality of work, and integrity.” Regard- ing relationships and employees, he said, “Be forthwith and don’t hide anything. Be clear about what you want done, and when you want it done. . . .” [OH-I4] • The white female owner of a construction-related company said, “The first thing is ethics. You do the right thing even if it hurts. The second thing would be continuous education. Formal or informal, it does not matter, just continuous education. The third thing would be to equip your whole team to develop leaders.” [OH-I7] • The African American male owner of a DBE/EDGE/SBA 8(a)-certified general contracting firm said, “Integrity means a lot to me. The teamwork is very important to us. How we treat people is very important to us. Also, I understand that there are companies that have been where I had been when I first started.” [OH-I31] Quality Employees More than 200 business owners reported that quality, diverse and well-trained employees contribute to business success. Comments include: • When asked about other keys to success in her industry, a Hispanic American female owner of a professional services firm reported that quality resources, compensation, and training are important. [IN-I64] • An African American male owner of a DBE- and MBE-certified specialty contracting firm reported employing an ethnically and age diverse employee team, saying, “We have women that are 60 years old . . . [and] 18 years old out there working. We’ve got Native Americans, Islanders, African Americans . . . [and] at least 12 young white kids, college-aged, who are still in school. . . .” [OR-I46] • The white female owner of a WBE-certified goods and services firm indicated that her busi- ness has great employees who care about the customers and work hard to make things run smoothly; most of the employees have been with the company for a long time. [IN-I1] • The female owner of a DBE/MBE-certified construction-related firm commented that finding and retaining good employees is difficult, and therefore maintaining a good relationship with them is key to her success. [AZ-I64] • Regarding qualified staff as a key to his firm’s success, the Hispanic American male owner of a CERT/TGB/SBA-certified professional services firm said that they need to have 30 qualified employees to be able to compete for meaningful projects. [MN-I43] • The African American male owner of an MBE-certified specialty services firm reported that, for any business, getting the best people is key. He said, “I reinvest in people, plant, equipment,

94 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program and systems, in that order.” He stated that he always tries to get the best people and does this by paying well and offering good benefits. [IN-I6] • A Native American male owner of a contracting firm said that he tries to do things to recruit good employees, such as participating in the Helmets to Hardhats program for former military. [IN-I71] Equipment and Materials About 200 business owners reported on the importance of having the right well-maintained equipment and materials, and access to affordable pricing, for operating successful businesses. For instance: • The African American male representative of a DBE- and MBE-certified construction busi- ness reported that his firm owns all of their own equipment and that this makes them more competitive. [OR-I49] • A white female owner of a DBE-certified specialty contracting firm reported overcoming negative issues with maintenance of her equipment by leasing newer equipment that requires less maintenance. [NV-I30] • A white female owner of a WBE- and DBE-certified contracting firm indicated that having and maintaining good equipment is a key factor to business success. [IN-I55] • Regarding the importance of well-maintained equipment as a key to success, an African American owner of a specialty services firm stated, “You [must] have state-of-the-art equip- ment to get things going.” [IN-I16] • The white female representative of a chapter of a national organization for women business owners reported that having the necessary equipment is critical for their members. She com- mented, “Having what they need in order to produce whatever product they’re making is important.” [IN-I45] Access to Pricing and Credit Approximately 150 business owners and representatives reported on the importance of access to fair pricing and credit for materials. Others commented on the importance of relationships with distributors. Examples of comments include: • The white female owner of a WBE-certified goods and services firm reported that access to good pricing is essential. She said that her business contracts with distributors to get good prices and volume discounts, which are passed on to the customer. [IN-I1] • The African American male representative of a DBE- and MBE-certified construction busi- ness commented that he was lucky enough to have his suppliers work with him when he had a late payment because a prime had not yet paid him. He said that this “hard time” happened a few years ago, and that he now only lost one supplier because of it. [OR-I49] • The African American male owner of an MBE-certified specialty services firm stated that one of the most important keys to success as a distributor is to have an authorized stocking distributor agreement with the key manufacturing companies and brands in your industry. He pointed out that customers want reputable brands that are known and trusted. [IN-I6] • An African American male owner of a specialty contracting firm reported that access to pric- ing and credit is important in his field because he often needs materials to complete a job. He added that sometimes having relationships with suppliers helps with access to credit and pric- ing. He said that currently he has good relationships and has a line of credit with a wholesale store. [IN-I40] • Regarding access to pricing and credit, the Hispanic American female owner of an MBE- and WBE-certified specialty contracting firm commented that pricing and credit are “so key

Qualitative Information from Disparity Studies Regarding Keys to Business Success 95 [to business success].” She added that they often have to work on a net 90 payment basis, and that it is very important to have a solid relationship with suppliers. [IN-I51] Access to Capital and Financing Access to capital, financing, and bonding are interrelated. More than 200 business representa- tives discussed their importance. Some offered insights into their methods of securing access to capital from banks, or through personal sources. Others discussed challenges they have faced. Examples include: • The African American male representative of a DBE- and MBE-certified construction busi- ness commented that his banker renewed his line of credit in 2012 when he was experiencing financial challenges, thus adding to his business sustainability and success. [OR-I149] • An African American female owner of an MBE- and WBE-certified professional services firm reported that a significant key to success for her firm is access to capital and financing. She said that a microloan she received from the local business initiative was helpful, though she knows of other businesses that cannot get enough to propel them forward. She noted that this is a challenge in the industry. [IN-I2] • A male representative of a woman-owned and DBE-certified firm said that his firm has not needed much financial support. He explained, “We’ve been very lucky [because] we’ve been able to self-finance everything so far. We have no debt, we never had debt, except for maybe a car loan once or twice. Occasionally, we’ll buy extra vehicles.” [ID-I3] • A male owner of a DBE-certified firm said that obtaining financing has been easy for him partly due to the personal relationship he has with his banker. [ID-I1] • An African American male owner of a DBE- and MBE-certified specialty contracting firm reported that access to capital is a key factor to business success. He went on to say that at start-up he tapped into his “nest egg” since business lending was not an option for him at the time. [OR-I46] • The African American male owner of a DBE/MBE/EDGE-certified information technology firm said, “Race does not impact your credit worthiness, as long as you are straight with credi- tors and keep them in the loop. We had to do that when we first started.” [OH-I54] • An African American female business owner indicated that the company does not have problems obtaining insurance or financing because it has a solid track record established over three decades. [CA-I31] • An African American owner of a DBE-certified specialty service firm reported not being able to secure funds for equipment. He said, “I had to be able to purchase a vehicle and equipment. . . . I had a hard time finding money to do so.” He added, “The cost of being able to . . . get start-up equipment was horrendous, we couldn’t . . . find the money anywhere.” [MN-I19] • A Hispanic American male representative of a DBE-certified contracting firm owned by a Hispanic American female stated that financing is a major part of success in the industry. He added that majority companies have the backing and credit to support large projects and become a prime contractor on large projects; small firms do not have that kind of backing. [IN-I13] • A Hispanic American male owner of a DBE-certified professional services firm reported financing as a barrier to start-up and beyond. He added that he understands why so many businesses “register and fail.” [MN-I43] • The white female owner of a DBE-certified design firm reported that her capital is intellectual rather than physical. She said that she relies on personal funds because she has a low line of credit. [MT-I26]

96 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program Access to Bonding and Insurance Many business owners (175+) reported that obtaining bonding and insurance was important in establishing and growing their businesses. Some firms, performing as subcontractors, con- sider not being required to bond as a key factor to their success. Others expressed facing chal- lenges obtaining bonding whereas some successful DBEs experienced no problems. For example: • An African American male business owner stated that “it works” for the company to be a sub- contractor because there are a lot of requirements, like bonding and accounting, that they do not have to deal with but that they would have to deal with if they worked as a prime. [CA-I27] • A representative of a Hispanic American male-owned construction-related firm expressed the challenges he faces by reporting that bonding companies “exclude DBEs right off the bat.” [OK-I01] • The African American male owner of an MBE-certified specialty services firm stated that he had no problems with insurance requirements and that he can always meet any requirements. [IN-I6] • The female owner of a DBE/MBE-certified construction-related firm commented that she has no barriers in securing adequate insurance for her firm. [AZ-I64] • The white female owner of a DBE-certified specialty contracting company commented that obtaining bonding or insurance are not challenges for her firm. [WA-I12] • The white male manager of an Asian-Pacific American-owned DBE-certified specialty con- tracting firm reported that the firm can get bonding, though bonding can be difficult for small firms. [MT-I22] • A white female owner of a WBE- and DBE-certified contracting firm reported that adequate insurance is a key factor to business success. [IN-I55] • An African American male owner of a DBE- and MBE-certified specialty contracting firm reported that insurance, though expensive for his company, is necessary for business success. [OR-I46] • The white female owner of a DBE-certified design firm reported that requirements are high and that her business success relies on access to enough insurance to operate her firm. [MT-I26] • The African American male president of a DBE- and MBE-certified construction business reported that he faces no challenges with obtaining insurance. [OR-I49] • The white female owner of a DBE/WBE/SBE/TGB-certified professional services firm reported that having adequate insurance coverage is key to offset risk. [MN-I48] • A white female owner of a DBE-certified construction firm reported that adequate insurance is a key to business success. [MT-I30] • The white male manager of an Asian-Pacific American-owned DBE-certified specialty con- tracting firm commented that obtaining insurance is not an issue for the firm. He described it as a business requirement. [MT-I22] • The Native American female owner of a DBE-certified contracting business commented that insurance is a factor to business success. [MT-I35] Timely Payments by Public Agencies or Primes Full and timely payments by public agencies, primes, or customers are critical to business success according to more than 150 business owners. A few DBEs noted that while payments in the public sector can be slow, they are guaranteed. Some DBEs reported that untimely payments can impact business success. Comments include: • An African American male owner of a DBE- and MBE-certified specialty contracting firm reported, “Weekly invoices are important to a new company, starting out.” He went on to say that not finding prime contractors who are willing to pay weekly invoices is detrimental to small firms. [OR-I46]

Qualitative Information from Disparity Studies Regarding Keys to Business Success 97 • The Hispanic American male partial owner of a DBE-certified construction-related firm commented that he likes to work in the public sector since payment is timely. [AZ-I29] • A white female owner of a DBE-certified construction firm reported that they have not had a problem with slow payment when working as a prime. [MT-I30] • Regarding her experience getting paid in the public sector, the white female owner of a certi- fied steel erection company said that the state DOT “is very slow,” and added, “I haven’t had any trouble with the Turnpike. Toledo has been pretty good.” [OH-I7] • The African American male owner of a DBE/MBE/EDGE-certified information technology firm said his experience is that the state does an outstanding job trying to increase the business it does with minority businesses, as well as trying to get all of its vendors paid on time. He added, “Something may still fall between the cracks, and if that happens, a firm should have built-up enough cash flow to offset an invoice if it is not paid on time. We call agencies if the invoice is late, or over $100,000, to make sure they got it and that there are no problems. Both sides are responsible.” [OH-I54] • A white female owner of a DBE/WBE-certified construction firm commented on how untimely payments can affect subcontractors. She said, “I say it is a problem of the agency, because they all have this rule that they do not have the contract with the sub. It is a way of shifting the responsibility. . . . Subs come and go because of the issues that they face.” [ID-I53] • The African American male owner of an MBE/DBE-certified consulting firm said that it’s important for small firms to grow their capacity and have spare capital. He noted that this is possible when “agencies . . . pay their MBE/WBEs, consultants, [and] small businesses [on time].” [ID-I12] • The African American male owner of an MBE/DBE/SBE/VOSB-certified specialty contracting firm reported, “We have done projects . . . [and] it will take 2 years for them to finish paying us. They hold our retention past the contract time. We will finish the project and . . . they will wait until that has passed before they give us all of our money. In the meantime, they have occupied the schools, doing damage, and still calling us to get the repairs.” [ID-I10] • The white male representative of a DBE-certified woman-owned construction firm stated that timely payment by the agency or prime, when there are “extras,” has been a problem. He reported, “Getting paid for the extras due to the regulations [has been a problem].” [ID-I18] Prevailing Wage Requirements and Union Contract Requirements Business owners discussed prevailing wage requirements that government agencies often place on public works contracts. More than 150 business owners reported not experiencing barriers with prevailing wage requirements and consider their ability to pay the wages to be a factor in their success. For instance: • An African American male owner of a DBE- and MBE-certified specialty contracting firm commented that his employees like prevailing wage and that he gets better employees because of it. [OR-I46] • The white female owner of a DBE-certified specialty contracting company commented, “[The company] is union [and that hasn’t been a barrier]. . . . [The company] needs the union. I don’t think [it] could get enough [qualified workers] without calling the union hall.” [WA-I12] • A white female owner of a DBE-certified specialty contracting firm reported that her firm is a union business and that she has faced no barriers with unions or paying prevailing wages. [NV-I30] • The Asian-Pacific American male owner of a DBE/SBE-certified professional services firm stated that the firm has been very competitive with their salary compared to most national firms, thus prevailing wage requirements have not been an issue. [AZ-I21]

98 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program • The white male manager of an Asian-Pacific American-owned DBE-certified specialty con- tracting firm reported that the firm is non-union and has had no issues meeting prevailing wages. [MT-I22] Public Sector Bidding Processes More than 85 business owners reported on whether or not the public sector bidding process is challenging to navigate. One business owner described the process as “flawed.” Some inter- viewees commented that projects are generally larger or more profitable in the public sector. Comments include: • A white female owner of a DBE-certified construction firm said that when it comes to bidding on public jobs, there is a “level playing field.” [MT-I30] • A white female business owner indicated that her firm is successful in the public sector and attributes its success in part to the fact that contracts are generally larger in the public sector. [CA-I35] • The Hispanic American male owner of a DBE-certified business reported that his company has been successful in bidding on state DOT projects in the past and indicated that the bidding process is fair. [CA-I21] • The Hispanic American male business owner said that he has faced no barriers with oppor- tunities to bid or submitting price quotes. He noted that the public sector bidding process is straightforward and that you just have to “follow the process.” [CA-I29] • The Native American female owner of a DBE-certified contracting business commented, “The bidding processes are flawed, but that’s just the way it’s going to be.” [MT-I35] Opportunity to Bid Business owners (300+) indicated that they have opportunities to bid on projects and that it is a key factor to their business success. Some business owners expressed facing challenges with the bidding process due to their firms’ small size. Comments include: • The female representative of a DBE-certified firm said that she is familiar with bidding pro- cesses. She explained that they monitor bids on websites for private entities and municipali- ties, and mentioned that the Quest CDN bidding system is a good resource because it provides lists of all the primes and the necessary bidding information. [ID-I7] • An African American male owner of a DBE-certified firm stated that he used to do work in the private sector, and that he has shifted entirely to the public sector “a while ago.” He indicated that he has been successful at getting work in the public sector and that his company works mostly as a prime contractor with contracts close to $3 million. [CA-I49] • A Native American male business owner reported that he is more comfortable with the “structure” of the bidding process in the public sector than the “relationship” basis for pri- vate projects. He added that the company’s public sector work ranges from $50 [million] to $70 million in value for prime contracts and that the subcontracts on which they work are usually in the billions of dollars. [CA-I11] • Regarding opportunities to bid in the public sector, the white female owner of a DBE-certified specialty contracting firm stated that a few years ago the firm had to pursue work in munici- palities because there were fewer opportunities in commercial or residential projects. She went on to say that the public sector work the firm sought expanded to some heavy construc- tion work. [MT-I4] • The white female owner of a DBE-certified specialty contracting firm remarked, “To be honest . . . I have been bidding [public sector work] since I got the [certifications], and I haven’t gotten one job. So, my work is pretty much private [sector] work that I find.” [MN-I56]

Qualitative Information from Disparity Studies Regarding Keys to Business Success 99 • The white female owner of a DBE-certified professional services firm reported that her firm experiences barriers related to their small size when bidding on projects. She commented, “It’s about perception of our size.” [MN-I48] Bid Shopping and Bid Manipulation More than 100 business owners indicated that they were not concerned about bid shopping or bid manipulation. For example: • The African American male representative of a DBE- and MBE-certified construction busi- ness reported that he has not experienced bid shopping. [OR-I49] • A white female owner of a DBE-certified specialty contracting firm reported that she has not experienced bid manipulation. [NV-I30] Treatment of Certified Firms More than 100 business owners reported that they have no experience with unfair or other- wise negative treatment by others. For example: • The Native American female owner of a DBE-certified contracting business reported that she has never heard anyone say “anything bad” about a minority company. [MT-I35] • When asked if they have ever been refused work or treated unfairly because they are minority- owned, the African American male owner of a DBE- and MBE-certified specialty contracting firm commented, “[Nobody’s] that crazy. . . . Even if they don’t like you, they don’t say it.” [OR-I46] Closed Networks More than 125 business owners reported that closed networks disadvantage their firms or had in the past. Others reported no experience with closed, or “good ol’ boy” networks. Comments include: • When asked if she experienced any closed networks, and if so, how she overcame them, the African American female owner of a heavy highway construction company said, “The ‘good ol’ boy’ network is still alive. . . . It was easier for me because of my father. Everyone liked my father. There was a pathway of openness and acceptance [for me].” [OH-I49] • A white female owner of a DBE-certified specialty contracting firm indicated no negative per- ceptions of closed networks. She said that “good ol’ boys” are the ones who have weathered the storms and have been around for a long time, and commented that she has to prove that she will do the same quality work as the people before her. [NV-I30] • The Hispanic American male owner of an MBE/DBE/MUCB/CERT/TGB-certified profes- sional services firm indicated that things are improving with respect to the “good ol’ boy” network as it is not as strong anymore. He suggested that a younger generation that tends to be more inclusive is replacing the older generation of “good ol’ boys.” [MN-I43] • The white female owner of a DBE-certified electrical engineering firm said, “[I believe] the prevalence of [the ‘good ol’ boy’ network or other closed networks] has gone way down and changed because [of] the cross section of our world. [With] more working women and suc- cessful minorities, the presence of the diverse workforce at all levels has helped normalize it. It’s still out there. [I’m] just saying it’s not as bad.” [OH-I1] • The white female owner of a WBE-certified construction-related firm commented that some of the older and larger general contractors still have a “closed network” attitude, though the younger generation is less likely to have those attitudes and be part of those networks. [NV-I39]

100 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program • When asked if she experienced any “good ol’ boy” networks or other closed networks, the white female owner of a steel erection company said, “Oh yes. . . . I would say if you’re not in that circle . . . you can break through it, but you have to be proactive.” [OH-I7] A number of interviewees indicated that the “good ol’ boy” network negatively affects DBEs. Comments follow: • The owner of a DBE-certified professional services firm indicated that reputation, size and qualifications often play a role in getting work. He added that “good ol’ boy” factors play a role as well. [AZ-I17] • The white female owner of a professional services firm reported that closed networks exist and do not let DBE or WBE firms join. She noted that the architecture industry is a closed network and difficult to break into by women. [MN-I32] • Regarding “good ol’ boy” networks, the female owner of a DBE-certified specialty contracting firm said that she “feels it.” [AZ-I39] • A Hispanic American male owner of a DBE-certified firm indicated that there is evidence of “good ol’ boy” networks. He reported that some cities and counties show preference to certain companies over others, and added, “We’re too small to battle it, there’s nothing we can do. . . . It’s unfair, but I thank the Lord we’re doing okay.” [MN-I18] • The female owner of a DBE-certified professional services firm stated, “There has always been a “good ol’ boy” network. I have been able to interact and make relationships with people, but I just don’t get work there.” [AZ-I43] • The white female representative of a white woman-owned DBE-certified consulting firm reported, “Yeah, I think there are all sorts of ‘good ol’ boy’ networks. . . . Go to an ACEC event. It took me like 2 years, probably, to feel like I broke into ACEC. . . . There are a lot of guys who have worked together for 20 years and they are happy to keep doing that, they don’t need new folks.” She added that she always needs new people with whom to work. [OR-I2] • The female owner of a DBE-certified professional services firm reported that her firm was awarded a subcontract only to lose it to the prime contractor’s “drinking buddy.” This “bit” her financially for years to come, she added, causing a $150,000 loss in expected revenue. She commented, “I was slapped . . . maybe I should have played the game.” [AZ-I70] • When asked if the “good ol’ boy” network still exists, the Hispanic American owner of a DBE-certified general contracting firm said, “Oh God, yes.” [AZ-I50] Business Assistance Programs Most state DOTs offer business assistance programs and support services to DBE-certified firms to assist them in their growth and success. Approximately 100 business owners indicated having general knowledge of assistance programs and outreach events and found them useful and helpful to their success. Many Business Owners and Representatives Discussed the Helpfulness of Mentor-Protégé Relationships • A Subcontinent Asian American male owner of a DBE/SBE/MBE-certified professional ser- vices firm stated, “Mentor-protégé is a good thing . . . it has an advantage because both firms can form a joint relationship. They can go work on projects set only for small business. . . .” [AZ-I9] • The African American male owner of a DBE/MBE/ESB-certified professional services firm reported that he has participated in a DOT mentor-protégé program. He noted that he took advantage of a lot of assistance and training programs and said that he recommends them to new firms. [OR-I28]

Qualitative Information from Disparity Studies Regarding Keys to Business Success 101 • The representative of a DBE-certified engineering firm reported experience with “informal” mentor-protégé relationships “[with] firms that take [them] under their wings that [they’ve] worked with over the years.” [AZ-I16] • The white female owner of a DBE-certified specialty contracting business reported that she received 6 months of mentoring. [MT-I1] • An African American female owner of a DBE- and MWESB-certified engineering firm reported that Port of Portland offers a mentor-protégé program that works very well in train- ing those in her field. [OR-I3] • The Hispanic American female owner of a DBE- and MBE-certified specialty contracting firm reported that her firm is part of a mentor-protégé program with a public agency. She noted that the experience has been very positive so far. [OR-I25] • The white female owner of a DBE-certified construction and specialty services firm reported that OAME and several mentor-protégé programs have helped her understand how to run a business successfully. [OR-I36] • An African American male owner of a DBE-certified general construction business reported that the mentor programs and training opportunities offered by City of Portland and the Oregon DOT have been major factors to his firm’s success. [OR-I40a] More Successful or Mature DBEs Outgrew Mentor-Protégé Programs and Sometimes Act as Mentors to Newer DBE Firms • A Hispanic American owner of a DBE-, MBE- and ESB-certified engineering firm reported that his firm worked with and mentored an engineering firm from out-of-state and noted that the program was successful. [OR-I18a] • The African American male owner of a DBE-, MBE- and ESB-certified specialty construction firm reported that his firm has started to mentor other small, minority businesses. [OR-I6b] • The white female owner of a DBE-certified specialty consulting firm reported that she par- ticipated in a mentor-protégé program many years ago, and that she found it to be a “great program.” [MT-I37] Some Business Owners Shared Their Experiences with Financial Assistance Programs • A female owner of a DBE-certified firm said that SCORE was helpful when trying to secure financing. She said, “I happened to find a really good banker, and the people at SCORE helped me put together a really good business plan. . . .” She noted that financial assistance programs were instrumental in her ability to start her business. [ID-I2] • Regarding the need for financial assistance programs, a white female owner of a DBE-certified construction firm commented that seeking assistance alone is “pretty tough.” [MT-I30] • The African American female owner of an MBE/WBE/DBE-certified specialty services firm said that she received a grant from a business assistance organization. She said, “I was awarded a grant . . . for $20,000 that covered the upfront costs of the business, the initial licensing, paid for the certification, and paid for my insurances [to start my firm].” [IL-I52] Bonding Assistance Was Useful to Firms • The white male manager of an Asian-Pacific American-owned DBE-certified specialty con- tracting firm reported that he utilized an SBA bonding program. [MT-I22] Business Owners and Representatives Discussed the Helpfulness of Technical Assistance, Business Training, and Other Outreach Programs • The white female owner of a WBE/DBE-certified construction firm reported that attending a business course prompted her to start her own business. She said, “Our local community

102 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program college offered a [night] course on how to start your own business. . . .” She added, “I was [employed] at the time [and] I went back for the [8-week session]. By that time, I thought I might as well do it because that would have been in the summertime by the time I finished. . . .” [IL-I60] • The Native American female owner of a DBE-certified contracting business reported that she has used technical assistance programs and support services in the past. [MT-I35] • When asked about on-the-job training programs, the African American male representative of a DBE- and MBE-certified construction business said that he is aware of such programs and noted that he was trained through a local technical college. [OR-I49] When asked about other agency outreach, the same business representative said that vendor fair outreach is necessary for small business development. He added that he attended a DOT conference for the first time recently and indicated that it was helpful. [OR-I49] • The Native American female owner of a DBE-certified contracting business reported that she is aware of on-the-job training programs and that she receives regular emails about them. [MT-I35] • A white female owner of a DBE-certified construction firm indicated that she attends pre-bid conferences. She said it would be nice if the state DOT used webinars so that people who cannot physically attend conferences can still be involved in the meeting. [MT-I30] Unbundling of Large Contracts More than 85 business owners discussed advantages of unbundling large contracts and open- ing those opportunities to small businesses. Many business owners reported that unbundling is a factor to their business success. Comments include: • The Hispanic American male owner of an MBE/DBE/MUCB/CERT/TGB-certified pro- fessional services firm said that large contracts could be broken into smaller pieces so that capable small firms can perform those portions. He said that the Department of Civil Rights and the state DOT are trying to implement set-asides for smaller minority-owned firms and indicated that it could be helpful. [MN-I43] • According to a white female owner of a DBE-certified construction firm, breaking up large contracts “would be wonderful.” [MT-I30] • The Native American female owner of a DBE-certified contracting business said that unbun- dling might be particularly helpful to small and certified firms for bonding purposes. [MT-I35] • The white female owner of a DBE-certified design firm reported that unbundling is advanta- geous to the success of small businesses. [MT-I26] • The Hispanic American male owner of a DBE-certified engineering firm reported that break- ing up large contracts into smaller pieces would be helpful. He commented, “It’d be nice to be part of a team to design a specific portion of design work for a highway project. . . .” [AZ-I13] • The African American male owner of a DBE-certified construction firm commented that unbundling “would help an awful lot.” [IL-I54] • The white female owner of a DBE- and WBE-certified construction firm commented, “We would like to see projects unbundled. I think that the road builders and the AGC have a straight line into DOT, and these large contracts are by design. They know very well it is a rare DBE that can bid those jobs.” [IL-I53] • The Subcontinent Asian American male owner of a DBE/MBE/MWRD-certified engineering firm said, “The changes I would like to see [are that] . . . they can divide the work between large firms and small firms. . . .” He commented, “Unbundle some of the projects. . . .” [IL-I7] Mandatory Subcontracting Minimums Some public agencies require prime contractors to subcontract out a certain percentage of the contract to provide more opportunities to small subcontractors. More than 70 business

Qualitative Information from Disparity Studies Regarding Keys to Business Success 103 owners and representatives reported that mandatory subcontracting minimums would be help- ful to their firms’ success. Comments include: • A white female owner of a DBE-certified construction firm commented that mandatory sub- contracting minimums would be “kind of cool” and would give smaller firms the opportunity to do work. [MT-I30] • Regarding small business subcontracting goals, the white female owner of a specialty contract- ing firm said, “I understand the need for it, especially with start-up companies. They’ve got to start somewhere. Somebody’s got to give them a break to get in there [and help] new busi- nesses get off the ground and get started, regardless of their ethnicity and gender background, because it’s kind of tough to break in.” [OH-I22] DBE Program Certification Process and Overall Value More than 200 business owners commented on the ease of the certification process and dis- cussed whether or not certification has a positive effect on their business success. DBEs Remarked on the Ease or Difficulty of the Certification Process • An African American male business owner indicated that the certification process is “getting better” in his state. He said that the state DOT has “improved some,” and that “right now they seem to be on top of it.” [CA-I27] • The African American male president of a DBE- and MBE-certified construction business described the certification process as simple. He commented that it went smoothly for him. [OR-I49] • The female owner of a DBE/MBE-certified construction-related firm commented that the certification process is no longer difficult because it is now done electronically. [AZ-I64] • The Hispanic American male owner of a DBE-certified firm said that he has had no problems with the certification process and that the paperwork “is simple enough if you [just] sit down and do it.” [CA-I51] Some Business Owners Reported That Certification Was Time Consuming and Paper Intensive • The Hispanic American male owner of an MBE/DBE/MUCB/CERT/TGB-certified profes- sional services firm noted that the certification process was easy, though the recertification process is time intensive. [MN-I43] • Regarding the DBE certification process, the Native American female owner of a DBE- certified contracting business commented that it was not difficult for her. However, she added that the paperwork is “daunting” for firms seeking certification for the first time. [MT-I35] • The white female owner of a DBE-certified professional services firm reported that the state DOT’s DBE certification was “straightforward.” However, she added that the amount of paperwork and information requirements surprised her. She said that when she got her reciprocal Interstate DBE Certification in another state, it was seamless and easy. [MT-I26] • An Asian American male owner of a certified firm stated that there was an “insurmountable” amount of paperwork required in order to become certified, though he felt this was “good” because “it keeps . . . people that probably aren’t deserving, or just everybody, from getting [certified].” [CA-I46] Owners of DBE-Certified Firms Reported on the Overall Value of the DBE Program • An African American male owner of a DBE- and MBE-certified specialty contracting firm reported that DBE certification personnel are extremely helpful in finding information for

104 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program the company. He added, “The program itself is good,” and reported that he gets more oppor- tunities to work because of the DBE program. He went on to comment, “[The DBE Program allows me] to get in and play with the ‘big boys.’” [OR-I46] • A female co-owner of a DBE-certified trucking company reported significant success in her industry. She indicated that 85 to 90% of her bids as a subcontractor have been awarded to her firm, and commented, “I just make a reasonable bid, and it seems to work out.” [GA-I119] Regarding the importance of certification in her industry, the same business owner said, “From my understanding, you can’t work for the state or federal government unless you are certified [as a] DBE, WBE, or something like that.” She added, “Without certification, you can’t get anything. You’re just stuck in the private sector.” [GA-I119] • The African American male representative of a DBE- and MBE-certified construction busi- ness reported that his firm receives more calls from primes and secures more work as a result of DBE program protocols in 2013. [OR-I49] • Regarding the importance of the DBE and M/WBE certification programs, a small certified business owner said, “[The program creates] some willingness for [primes and public entity representatives] to let us in their door, to talk to us. . . .” [NC-I131] • A white female owner of a DBE-certified construction firm indicated that DBE certification is advantageous. She commented, “The opportunities are endless.” [MT-I30] • The Hispanic American male owner of a DBE-certified firm reported that about 10 to 15% of their public sector work is directly related to their DBE status. [CA-I19] • The white female owner of a DBE-certified professional services firm reported that in 2005, the state DOT consulting projects had goals and she was hired under those goals. [MT-I26] • A Subcontinent Asian American male owner of a DBE/SBE/MBE-certified professional services firm stated that being a DBE gave him an easier market entry to some of the state DOT’s work. He added that “being a DBE sub reduces the marketing costs.” [AZ-I9] • The white male manager of an Asian-Pacific American-owned DBE-certified specialty con- tracting firm reported that the DBE program was helpful in the firm’s early days. He said that certification helped the firm to secure work. [MT-I22] • A white female owner of a DBE-certified specialty contracting firm said, “I think the prime contractors are thrilled [that I’ve received my DBE certification] because there’s been quite a bit of work, and . . . they can meet their DBE qualification [while] I’m [giving] them a fair bid.” [NV-I30] • The African American male owner of a DBE-certified general construction management firm discussed the importance of the certification process. He stated that some certification processes “are just a rubber stamp,” and applauded more thorough, disciplined processes. He indicated that proper certification prevents unqualified businesses from competing with qualified ones. [OH-I30] • When asked if certification is an element of success, the white female owner of DBE-certified steel erection company said, “Yes, it actually is. I want to be careful how I put this. I do not think a person should get a job because they are a woman or because they are a minority. They should get the job because they have earned it. But they should not be denied the opportunity because they are a woman or a minority. This [DBE] program provides oppor- tunity for which I am very thankful. I think once you get the right to bid, then you have to perform.” [OH-I7] The same business owner added, “If it were not for the DBE program, I don’t know that I would have ever become a viable company. I needed that push. I needed contractors to almost have to use me, in a sense. Without DBE certification, I don’t think I would be in business, and without it, I don’t think I would stay in business. I would have to restructure my company and

Qualitative Information from Disparity Studies Regarding Keys to Business Success 105 maybe I could do that over time. But the initial shock, if it were suddenly taken away, would be really tough because it’s such a large amount of our work.” [OH-I7] • The Hispanic American female owner of a certified firm said, “Without [certifications] I wouldn’t be able to bid half this stuff. My phone didn’t ring until I had the certifications.” [CO-I28a] • An African American male owner of a DBE-certified firm commented that the DBE program has positively affected his business. He said, “It gives small business a chance to grow and compete in their community. The classes are very helpful and informative, [and] the facilita- tors are most knowledgeable. Without the . . . DBE programs, I think small companies like ours would find it most difficult, if not impossible, to move forward.” [CO-I28b] • A female business owner of a DBE-certified trucking company reported, “We increased the amount of work that we did for [the state DOT] through prime contractors, but only because we were a DBE. I can say that we would not have been looked at if we had not been a DBE.” [CO-I28c] • A white female owner of a DBE-certified construction firm indicated that the DBE program has not been as helpful as she had hoped as far as projects, though resource-wise it has been helpful. She added that she attended seminars and used the DBE reimbursement program. [MT-I30] Other Comments About Keys to Success “Successful” certified business owners and others also reported on the importance of perse- verance, training, leadership skills, flexibility, appearance, attitude, and other factors to business success. Comments include: • An African American male owner of a DBE- and MBE-certified professional services firm stated, “Success is who you are, what you are about [and] what you believe in. This is what I like doing. . . . What matters is your attitude about work. If you don’t like what you’re doing, it’s going to show in your work.” He said that your attitude about your work is a key to success. [IN-I19] • The white female owner of a WBE-certified professional services firm reported on the impor- tance of technology for marketing her firm. She said that she uses social media for network- ing and business development. [IN-I5] • A Hispanic American female owner of an MBE- and WBE-certified professional services firm reported that another key to success is her education and getting her degree. She said that she took finance classes and talked with entrepreneurs who gave her learned knowledge about being financially sound and running a fiscally conservative business. She noted that this was especially important for her business. [IN-I7] • When asked about keys to success, an African American male owner of an MBE-certified spe- cialty contracting firm noted that time management skills are important, along with business management skills, building a team, honesty, and trust in people. He added, “It’s learning the lingo of the business, the ins and outs, being informed as an owner, and knowing about code enforcements.” [IN-I22] • A Subcontinent Asian American female owner of an MBE-certified goods and services firm noted that some keys to success are knowledge of networking, sales, finance and cost controls, producing quality products, and customer service. [IN-I36] • When asked about the keys to business success, a Hispanic American male owner of a profes- sional services firm reported, “The number one key is being flexible.” He went on to say that the ability to learn new things is also important. [IN-I38]

106 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program • When asked about other keys to business success, a Hispanic American male owner of a spe- cialty contracting firm commented, “Give up sleep.” He indicated that one must give up a personal life, saying, “You give up a lot of your outside . . . life and hobbies to be successful. . . . But then, when you are successful, you get all that back tenfold.” He said that he tries to help other people by giving them choice work and work locations, though “100% of the time . . . they all seem to fall short . . . because nobody wants to give up their sleep.” [IN-I41] • When asked if there are other keys to business success, the Hispanic American female owner of an MBE- and WBE-certified specialty contracting firm noted the ability to persevere and get past hard times. She went on to say that she and her family have made sacrifices for the success of the business. [IN-I51] • A white female owner of a WBE-certified professional services firm reported that another key to business success is “leadership.” She added, “Especially when you are in a situation like where we were where there was no money for a while . . . our people stayed.” Her company’s goal as a business, she added, is to help a charity in the community. She went on to say, “We like to help in the community. The end game isn’t about us. . . .” [IN-I52] • An African American partner of an MBE-certified specialty contracting firm stated that an important aspect of being successful is having steady cash flow. [IN-I53] • A white female owner of a WBE- and DBE-certified contracting firm said, “As long as you get your financing in line, bonding, good employees you can trust, and you treat your customers right, that is all you need.” [IN-I55] • The white female owner of a WBE-certified professional services firm indicated that her big- gest key to success is perseverance. She stated, “I pride myself on service and quick turnaround time, [as well as] . . . the fact that I’m so close, I can get there within 10 minutes, find out what they need, get back here, and get a quote right away.” [IN-I56] • The Subcontinent Asian American male owner of a goods and services firm stated that to suc- ceed, he tries to “keep it simple.” He went on to explain that good service and good quality, along with the “cheapest price in the world,” are keys to his firm’s success. [IN-I58] • When asked about the general keys to success, the Hispanic American male owner of a spe- cialty contracting firm responded, “[It’s] definitely marketing and follow-up. Follow-up is a must. The one thing that we’ve found in working is that once you make that contact with the person, and we do demonstrations a lot of times . . . [follow] back up with them. Also, [provide] a good service [and be] honest. In any industry there are always fly-by-nights, [be] honest with the customer. [Make] sure you understand what they’re saying, and vice versa.” [IN-I62] The same business owner continued, “The other thing is how you dress. . . . [In] our industry, we’ve seen this from going to the supply house to being in a [job location]. A lot of our competitors wear jeans and things. And we wear khakis and [shirts with a collar]. . . . We’re a professional company.” [IN-I62] • When asked about the keys to business success, an African American male owner of a pro- fessional services firm stated that the most important thing is “growth.” He elaborated, “If you’re not growing, you’re dying. You gotta grow. You have to have the people with the skills and capabilities to enable your growth.” He went on to say that you have to meet clients’ expectations; they look for people with the skill sets to grow. He added that quality of work and monitoring of quality are very important and that you cannot sustain growth without them. [IN-I67] • Regarding business success, the white female owner of a professional services firm com- mented on the importance of business exposure. She said that “putting yourself out there” is important. [IN-I68] • The African American male owner of a fence installation and supply company said that a key to business success is “knowing your customer, knowing your product and knowing yourself.”

Qualitative Information from Disparity Studies Regarding Keys to Business Success 107 He added, “You’re only as good as you talk. . . . You can’t be a . . . fly-by-night company. It takes a lot of hard work and determination. It’s not the smartest person in the industry or the wealthiest person in the industry [that’s successful]. It’s the person that has determination to persevere. And that’s what makes a difference.” [OH-I26] • The male vice president of a woman-owned construction services firm said that “making sure you did the jobs right and [not] pick[ing] up work just for the sake of getting work” are keys to success. He added, “You’ve got to make sure you have the proper amount of money in there, that’s key because we’ve been on the wrong end of that a few times, and it’s really bad. The main thing is just stick [to] doing what you know how to do and making sure you [do] it right.” [OH-I36] • The African American male owner of a DBE-certified general construction management firm said that he believes that anyone who wants to own a business must work hard, regardless of background. He elaborated, “You make sacrifices every day, and I believe in [diversity] regard- ing males and females. But I also believe in sacrifice, because I know the sacrifices I made to start a business. . . . It’s tough, and you pay your employees, you don’t pay yourself. So, you [need] that mental discipline to say, ‘Here’s what we’re [going to] do.’” He claimed that his success can be attributed to four basic principles, saying, “One, remember the sacrifice. Two . . . discipline. Three . . . the vision. And four, [the] most critical, is the goal.” [OH-I30] • The male owner of a DBE-certified firm, when asked what it takes to be competitive in his field, said that good management, understanding the work provided, and the ability to man- age the time and assets associated with that work are all keys to success. [ID-I20] • When asked what it takes to be competitive, the male owner of a DBE-certified firm said that performing work on a low budget is important. He recalled an experience where he received a $500,000 project and finished it in a year and a half, only using a portion of the budget. He commented, “Why should I spend $50,000 instead of $14,000 if [it] will get the same results?” [ID-I26] • A male owner of a DBE-certified firm said that doing simple things like arriving on time and being responsive to customers’ needs will earn repeat business. He said, “I know it’s going to seem so simple . . . [but] you got to show up [and] you got to be there on time. . . . It’s always just putting your best foot forward. Showing up on time when you say you’re going to be there and having your truck available for when they need you [is important]. To stay competitive, you literally have to be at their beck and call.” [ID-I7] The same business owner said that persistence is important when seeking subcontract work. He said, “[I make phone calls to contractors] every morning, try[ing] to find work. . . . You have to be [persistent], otherwise you’re not going to get anything. . . .” He continued by saying that it takes time to earn the trust of contractors and to get hired. [ID-I7] He continued, “It took a while to get started, to get [our] foot in the door and actually get these guys to use you a couple times and then trust you, and then show that you’re going to be there all the time. . . . It started out as a testing phase. . . . They would use me for 1 day out of the week, and then call me the next week and then use me for 2 days out of the week. Then they would wait 2 weeks and then call me again. . . . You show up, you do your thing, you keep your paperwork straight with them, easy-peasy, [and] send them a nice, clean invoice.” [ID-I7] • The white female owner of a DBE-certified specialty contracting firm reported that her key to success is having “a really good way of juggling everything.” [IL-I34] • The white female owner of a DBE-certified construction firm reported that her “determina- tion” is a major key to her success. [IL-I35] • The white female owner of a WBE/DBE-certified construction firm indicated that successful firms require a lot of time investment and training. She said, “Construction is a very demand- ing business. I still work on an average of nine to 10 hours a day.” [IL-I53]

108 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program Additional Anecdotal Information from Disparity Studies • DBEs commonly responded to questions about barriers to doing business. The biggest con- cerns for subcontractors were competing with large firms, slow payment from primes or nonpayment from primes, limited time given to prepare a bid, and contracts that are too large. [AK] • Many DBEs reported that they face challenges with untimely payments, securing contract opportunities, limited access to capital and bonding, and other factors that can hinder busi- ness success. [HI]

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Firms that have graduated from the federal Disadvantaged Business Enterprise (DBE) program or have successfully competed for state transportation agency contracts are the focus in NCHRP Research Report 913: Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program.

The DBE program provides small businesses owned and controlled by socially and economically disadvantaged persons with opportunities to participate on federally assisted highway contracts. As a requirement of receiving federal highway funds, state departments of transportation (DOTs) must administer the DBE program. FHWA provides oversight of the state DOTs’ operation of the program to ensure that they are in compliance with federal regulations.

The report includes appendices that define success, profile successful DBEs, and describe state DOT initiatives for DBE success. It also explores the types of business assistance that contribute to the success of DBE firms.

The report serves as a resource for staff in state transportation agencies, U.S. DOT, and other groups implementing the DBE program or providing business assistance.

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