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

Chapter: Appendix F - Qualitative Information from Successful DBEs Regarding Business Success

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Suggested Citation:"Appendix F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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 F - Qualitative Information from Successful DBEs Regarding 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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148 Introduction and Methodology The study team conducted in-depth interviews with 27 firms as part of the study. Two inter- viewees were owners of “DBE-graduated” firms and 25 were owners of DBE-certified firms. Interviews were conducted in spring 2018 by telephone. The study team prepared interview reports for each DBE based on audio recordings of the interviews. Most interviews were with the owner of the company. Firms were located in 18 states: Alaska, Arkansas, Arizona, Connecticut, Hawaii, Idaho, Michigan, Minnesota, Montana, New Hampshire, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Virginia, and Wisconsin. Business owners interviewed for the study were often specific in their comments. The study team reported comments in more general form when necessary to minimize the chance that readers could readily identify them. Each business comment represents an interviewee and also reports the race/ethnicity and gender of the business owner or business representative, when possible. Some comments were derived from survey responses by business owners and representatives. Based on the qualitative information provided by many successful DBEs, it is apparent that the major factors to business success and to ultimate “graduation” from the DBE program, among others, are business and industry experience, access to capital, development of business relationships, and hiring of qualified employees. Background of the Firm and Industry DBE business owners and others reported on their business histories including start-up, type of work performed, business expansion, size of contracts, certification programs, other key factors, and their relationships to their business success. Business Start-Up History Many owners of certified businesses reported that their companies were started by individ- uals with prior experience and/or longevity in their respective industries. Some mentioned that they started their companies more than 20 years ago. Many business owners agree that experience in their respective industry is a key to success. Comments include: • The Native American male owner of a DBE-certified specialty contracting firm reported that members of his family were in the industry since the 1970s. A P P E N D I X F Qualitative Information from Successful DBEs Regarding Business Success

Qualitative Information from Successful DBEs Regarding Business Success 149 • A white female owner of a DBE-certified specialty services firm commented that she pur- chased the firm in the early 1990s with a $40 down payment and a payment plan for the balance. She added that she pre-paid in order to reduce the interest charges on the plan. • The Hispanic American male owner of a DBE-certified professional services firm reported, “I worked for a consulting firm for 24 years and worked my way up to the executive team. [I was] in charge of 160 people when I left the company. I left the company because of finan- cial problems.” He added, “I got DBE status and decided to start my own company.” • The white female owner of a DBE-certified construction firm reported that after years of experience working in the family construction business, and after her brother chose a dif- ferent career path, she took over the firm in the late 1980s. • The white woman owner of a DBE-certified specialty contracting firm reported starting her firm in the 1990s after working as a construction union laborer and flagger. • The Hispanic American male owner of a DBE-certified professional services firm reported that after working in the industry since the early 1980s he started his own firm in the mid-90s. He noted that he is writing a book on how to start a business. • The white female owner of a formerly DBE-certified specialty contracting firm, who “gradu- ated” from the program, reported that she has been the firm’s president since the late 1990s and had prior related experience. The same business owner reported that she started the firm as a home-based business with two employees the first year. She reported that her firm has since expanded to 110 employees with operations in four states. • The Asian American female owner of a DBE-certified specialty contracting firm reported that she had over 25 years of experience in the industry before starting her firm. She said that her starting the firm “sprung out of necessity” when her job was eliminated at her former employer. • The African American female owner of an MBE/DBE-certified professional services firm reported that she started her firm over 10 years ago and realized at that time that certification would be beneficial. • The white female owner of a DBE-certified supply firm reported that she became certified in the 1970s after “buying out” her partner. • A white female owner of a DBE-certified specialty contracting firm reported that she pur- chased the firm in the early 2000s from a Hispanic American male owner, after working as the office manager for many years. • A Native American female owner of a DBE-certified specialty contracting firm reported that the firm was started many years ago due to her displeasure working with her former employer. She said that she attempted to purchase her former employer’s firm, but the cost was too high; therefore, she started her own firm. • The African American female representative of an African American male-owned MBE/DBE- certified specialty contracting firm reported that the firm started in the late 1990s. • The white female owner of an SBE/DBE-certified professional services firm said, “I started my business in [the early 2000s] from scratch. After college I worked for the DOT and was interested in bridges and design construction. I was on the emergency repair squad and was part of performing routine bridge safety inspections, so I got to see everything about bridges for 6 years. My next promotion would have taken me away from what I love, which is bridges. I was [in my late 20s] and took a leap of faith. I knew I could go back to work for the state DOT or another firm.” She added that she is the sole owner of the firm. • The African American male owner of a DBE-certified specialty contracting firm commented that he started his firm after a friend who had construction experience asked if he wanted to start a company. He indicated that the firm became DBE-certified and an SBA 8(a) in the early 2000s.

150 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program • The Asian American male owner of a formerly DBE-certified professional services firm, who “graduated” from the program, reported that he started his firm in the early 2000s. • A Subcontinent Asian American male owner of a DBE-certified professional services firm reported that he started the business in the early 2000s with a partner. • The white female owner of a DBE-certified specialty contracting firm reported that she and her husband started the firm in the mid-1990s. She said that she is 60% owner of her firm which she started on the recommendation of her husband who had experience in the industry. • An African American female owner of a DBE-certified professional services firm reported that she worked for a large firm in the same industry for 10 years before starting her own firm. She said that she started her business because she “had a really solid feeling of entrepreneur- ship.” She explained that she decided to start her business when she was on maternity leave, and first worked out of an upstairs bedroom. The same business owner added that her business grew slowly at first due to the birth of her children. She explained that she then moved into an executive suite, and after about one year there she moved into office space where she then hired her first employee. She reported that her firm was one of the fastest growing companies in her city for 3 consecutive years, and commented, “It just kind of took off.” • The Hispanic American male owner of a DBE-certified professional services firm com- mented, “I just opened the company and applied for contracts . . . and I got one. . . . That was the beginning.” • When asked how his business became established, the African American male owner of a DBE-certified construction firm said, “I purchased this business from a competitor. I had another business prior to this. . . . I closed down the original business and continued with this one.” • The Hispanic American male owner of a DBE-certified specialty contracting firm reported that he started the business from scratch by buying a few pieces of equipment. He added, “There weren’t a lot of DBE firms in the . . . area. . . .” Sources of Capital Used to Start or Purchase the Business Business owners described how they were able to start their firms. Many indicated that they used personal funds, loans, and other sources of financing. Comments follow: • The African American male owner of a DBE-certified specialty contracting firm reported that he used his savings as a source of capital for his business start-up. • The Asian American female owner of a DBE-certified specialty contracting firm remarked that she used savings, retirement, and severance pay from her previous employer as funding to start her firm. • The white female owner of a formerly DBE-certified specialty contracting firm, who “grad- uated” from the program, reported that she used student loan and grant funds to finance her business as she was a graduate student at the time of start-up. • A white female owner of a specialty contracting firm reported that she took out a $150,000 loan from a local bank to purchase the business. • The African American female owner of an MBE/DBE-certified professional services firm reported that she used personal credit cards as capital to start her firm. She commented that starting as a home-based business she only needed a computer and nothing else was required at the time. • The white female owner of a DBE-certified supply firm reported that she took out a loan after “buying out” her partner. • The Hispanic American male owner of a DBE-certified professional services firm reported that he used his severance package and a home equity line of credit to finance his start-up.

Qualitative Information from Successful DBEs Regarding Business Success 151 • The white woman owner of a DBE-certified specialty contracting firm reported using her credit cards to finance her business start-up. • A Native American female owner of a DBE-certified specialty contracting firm reported that at start-up she initially had a mentor/investor who died immediately thereafter. She said that she then secured SBA loans to finance her firm. • To start her firm, a white female owner of a DBE-certified specialty contracting firm reported, “My mom and dad gave me some money and I got a bank loan.” • The African American female representative of an African American male-owned MBE/ DBE-certified specialty contracting firm reported that the owner “put in $500 . . . to start the business.” • The white female owner of an SBE/DBE-certified professional services firm commented that she used her savings and added that she was married and had two incomes. She said that she used $5,000 and started with a laptop and office supplies in her home basement. • The Asian American male owner of a formerly DBE-certified professional services firm, who “graduated” from the program, reported that he and his partner used personal savings and the equity in their houses to start the firm. • A Subcontinent Asian American male owner of a DBE-certified professional services firm reported that he started the business using his own personal savings. • An African American male owner of a DBE-certified construction-related firm reported using personal savings to start his business. • The white female owner of a DBE-certified specialty contracting firm reported that she inherited funds from her father to start the firm and utilized a business loan to purchase equipment. • The Hispanic American male owner of a DBE-certified specialty contracting firm stated, “I got a loan from the bank, I was fortunate . . . a lot of people don’t have easy access to fund- ing, mainly because [other DBEs] are starting from scratch and don’t have a lot of collateral. I was fortunate that I had a significant 401(k) from when I was in the corporate world that I could leverage as well as some savings.” Some business owners reported challenges with access to start-up capital. Comments follow: • The Native American male owner of a DBE-certified specialty contracting firm expressed experiencing unforeseen circumstances at start-up. He indicated that due to family situations such as death and loss of jobs and an economic downturn, his family’s assets were utilized to start the firm “from the ground up.” He added, “Access to capital was nonexistent.” • The Hispanic American male owner of a DBE-certified professional services firm reported that he used his retirement account funds because “banks wouldn’t give [him] any money to start up [his] company.” • An African American female owner of a DBE-certified professional services firm stated, “I had to put up my [own] collateral to do business with the bank. Our industry didn’t have the best reputation, and then there weren’t a lot of banks that were actually doing lending to minority firms, that’s all [there] was to it.” The same business owner added, “[After starting my business] we met a gentleman with Chase Bank in one of the organizations that work with minority business enterprises. And at that time Chase and . . . some of the other banks were looking at minority businesses and doing lending. And that was backed by SBA, so we ended up getting a loan from Chase and built a great relationship with them for almost 20 years.” • The Hispanic American male owner of a DBE-certified professional services firm reported having secured a bank loan to finance his business start-up. He added, “I think the most diffi- cult [challenge] was to get the loan, because [I didn’t] really have a background, except for my experience. . . . But . . . I was able to get one loan from one bank, so that was enough. But, [that] took a while . . . to find a bank that would give you a loan based on just your experience.”

152 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program • An African American male owner of a DBE-certified construction firm stated, “To purchase the business, we . . . leveraged funds from a private equity firm. The business took on debt in return for funds from a private equity firm. And those funds were used to pay off the . . . previous owners.” • When asked how her businesses secured start-up capital, the white female owner of a DBE- certified consulting firm commented, “I had worked for a consulting engineering company and when I left that company I used the cash out of my sick leave and vacation as start-up capital.” She said that her start-up capital “didn’t amount to much,” so she worked out of her residence at the start of her business. She added, “My start-up capital was maybe $4,000, and it involved [buying] computers and printers.” Challenges in Starting the Business Business owners reported that they faced many challenges at the start-up of their firms. Challenges included limited access to capital, economic conditions, race/gender discrimination, cost of bonding, finding quality employees, prequalification requirements, as well as others. Comments follow: • The Native American male owner of a DBE-certified specialty contracting firm reported that the economic downturn was a challenge for his firm. He commented, “Every time I got paid . . . I went out and bought another piece of equipment.” • When asked about challenges starting the business, the Hispanic American male owner of a DBE-certified specialty contracting firm stated, “I think some of the things [DBEs] are chal- lenged with is finding good help, finding people who can pass the background [check], find- ing people who are showing up to work every day. Also, showing people that you’re . . . a reputable firm that was going to come in and do what you said you were going to do, which I felt was what our success truly hinged on, being able to take a leap from, ‘I’m going to use you cause you’re a DBE,’ to ‘I’m going to use you cause you’re a good contractor.’” • The African American male owner of a DBE-certified specialty contracting firm reported experiencing challenges finding work in a small town where many other contractors also worked. He added that bonding caused barriers. The same business owner reported that his minority status caused challenges when some customers were reluctant to hire him. He commented that in the small town, stereo- types existed that African Americans could not perform well, and noted that he disproved that myth. • The Asian American male owner of a formerly DBE-certified professional services firm, who “graduated” from the program, stated, “We were blessed that we had . . . credibility with the DOT [in] that we didn’t have any problem winning projects, but the biggest problem was working with the Small Business Administration in getting more funding to hire more people [and] get equipment. . . . The biggest challenge was financing.” • A white female owner of a DBE-certified special services firm commented that she faced chal- lenges pacing her growth. She remarked that she did not want to grow too fast, commenting, “I wanted to manage the growth.” • The Hispanic American male owner of a DBE-certified professional services firm remarked that business name recognition caused barriers for him at start-up. • The white female owner of a DBE-certified construction firm reported that her industry is “not kind to women.” She said that she still faces challenges in the industry with men recog- nizing her abilities. • The white female owner of a DBE-certified specialty contracting and supply firm reported that stress always exists at business start-up if you are “going to make it work.” • A Native American female owner of a DBE-certified specialty contracting firm reported that “there were many challenges including technology, manpower, labor, skilled workforce, work ethic, and capital.”

Qualitative Information from Successful DBEs Regarding Business Success 153 • The Hispanic American male owner of a DBE-certified professional services firm remarked that he faced challenges hiring qualified staff. • The Native American male owner of an MBE/SBE/DBE-certified construction firm reported that finding qualified employees and customers caused challenges for his firm at start-up. • The white female owner of a formerly DBE-certified specialty contracting firm, who “gradu- ated” from the program, reported that she faced challenges with name recognition and sex discrimination. She said that women and minorities are not offered the same opportunities in her industry as white men. • The Asian American female owner of a DBE-certified specialty contracting firm said that in the beginning it was difficult to “get [her] feet in the door.” She elaborated by stating that the presence of established, historically Japanese male-owned firms in her industry were a challenge for her in starting her business. She commented, “Most of our barriers were . . . race-related and . . . gender-related.” • A white female owner of a DBE-certified specialty contracting firm reported that “early challenges were trying to get [her] foot in the door.” • The African American female owner of an MBE/DBE-certified professional services firm reported that years ago, untimely payments from primes were challenging. However, she said that payments are now timely for her firm. • The white woman owner of a DBE-certified specialty contracting firm reported that “getting work” was challenging for her at start-up. • The African American female representative of an African American male-owned MBE/DBE- certified specialty contracting firm reported that the firm initially experienced slow growth. • The white female owner of an SBE/DBE-certified professional services firm stated that she was aware of challenges after having worked at the state DOT. She said, “I knew what their needs were, but I had to figure out how to do business with them [and] how to do the paper- work.” She added, “Navigating paperwork and the documentation was a challenge [along with] proving experience and expertise to prequalify.” • A Subcontinent Asian American male owner of a DBE-certified professional services firm reported, “The biggest challenge . . . I would say . . . [is] keeping . . . the workflow coming in on a steady basis.” He stated that cash flow is also a challenge “from time to time.” He mentioned that securing contracts that have incumbent prime contractors is also a challenge for his firm. • An African American male owner of a DBE-certified construction-related firm expressed that he faced challenges with obtaining and accumulating capital early on in his business. Regard- ing access to capital at start-up, he said, “The hardest part . . . [is when] you have nothing and you’re starting from scratch.” • The white female owner of a DBE-certified consulting firm, when asked about the challenges she faced when starting her business, said, “Probably the biggest challenge was just . . . getting my feet under me from a business management standpoint, [and] getting accounting systems in place.” She added, “Probably another challenge was developing a reputation and securing clients.” • When asked about the challenges that she faced at start-up, a white female owner of a DBE- certified specialty contracting firm reported, “Backing. I guess you could say money, [secur- ing] a line of credit and things such as that.” When asked if it was her first time applying for a business loan, she said, “Yeah, because we didn’t have any business [before that]. We couldn’t get any work, so at about that time . . . we got offered a [private] project, and . . . we took that [as our first job].” The same business owner later said, “My main problem at that time when we started was bonding. We couldn’t get enough cash to get bonding. So, that was a problem.” • The white female owner of a DBE-certified specialty contracting firm stated, “We were always a sub. . . . The biggest thing was dealing with the contractors. A lot of them were supposed to let you know when they were bidding on something. They would email me an hour before the bidding was due and say, ‘Oh, would you bid on this part?’ They wouldn’t give you time

154 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program to do it and then they’d say, ‘Oh, we couldn’t get a DBE to do it.’ They wouldn’t give you any time to bid them. . . .” • An African American female owner of a DBE-certified professional services firm reported that the main challenge that she faced when starting her firm was generating business. She reiterated, “The industry that I am in was not an industry that was very friendly to minorities, that’s all [there] was to it. Dealing with that, and then it was not a female-friendly industry as well. . . . We were few and far between. . . .” • An African American male owner of a DBE-certified construction firm reported, “The biggest challenge was when the real estate bubble burst in 2008. . . . That was the biggest problem I faced . . . ever. The whole [market] collapsed.” Business Description and Work Types of the Firm and Changes over Time Business owners and representatives discussed the types of work that their firms perform. Some indicated that variability in the type of the work performed increases the chances for busi- ness success. For example: • The Native American male owner of a DBE-certified specialty contracting firm stated that the type of work performed when he started was construction-related, and that he has since expanded into other construction-related specialty contracting. He added that he plans to add more construction-related work types to “broaden their scope.” • An African American male owner of a DBE-certified construction-related firm commented that he “transitioned” to the construction industry from a related industry and wanted to find his niche as a DBE. He said, “I was just looking for opportunity . . . just [to] get [my] hands on some work.” • The white woman owner of a DBE-certified specialty contracting firm reported that her busi- ness expanded from one small dump truck to 26 dump trucks. • The Hispanic American male owner of a DBE-certified professional services firm remarked that he formerly was a teacher, and that he now does work for the state DOT, the wind turbine industry, and private clients. • The white female owner of a DBE-certified construction firm reported that the firm has changed from general contracting to offering more focused products. • The white female owner of a DBE-certified supply firm reported that in the last 3 years her firm has changed from installation and sales of materials to solely sales of materials. • A white female owner of a DBE-certified specialty contracting firm reported that her company is a “construction trucking” firm. She said, “[We do] hauling of asphalt. I have in dumps, belly dumps and side dumps.” She later added, “[We started] as general contractors, doing earthwork.” • The African American male owner of a DBE-certified specialty contracting firm stated that the type of work that they started initially was construction-related, such as excavation and clearing. He said that they expanded to underground utilities, waterlines, sewer lines and other related work. • An African American female owner of a DBE-certified professional services firm stated that her firm does a wide range of work. She explained that, among other things, they do social campaigns, they work with corporations in both supplier diversity and community relations programs, grassroots public relations, digital technology, nontraditional media, and more. She added, “We’ve gotten into a lot of other areas of communication. Nowadays you really have to develop strategic ways to engage with target audiences. . . .” • The Hispanic American male owner of a DBE-certified specialty contracting firm stated, “Well, right now we are able to do anything related to the state DOT work plus municipality work. We’re set up to do utilities, storm drain, so a various type of scope within the work. We

Qualitative Information from Successful DBEs Regarding Business Success 155 used to be more geared towards utility type work and selling water or sewer or storm drain. That was the majority of what we used to do. But since we’ve been able to take advantage of some . . . of the opportunities that the state DOT has put out there, that has given me the ability to buy more equipment and do other types of work.” A few interviewees indicated not significantly expanding or diversifying their firms’ work types. Comments include: • The African American female owner of an MBE/DBE-certified professional services firm reported that she has always worked in the construction-related professional services industry. • A white female owner of a DBE-certified specialty contracting firm reported that she has not changed the types of work her firm performs. • An African American male owner of a DBE-certified construction firm reported that he is a professional engineer. He stated, “We are a steel erector. Reinforcing steel . . . structural erecting, things like that.” – The same business owner added that his firm is “pretty much doing the same thing that . . . [his] previous business [did].” He added, “We’re using union iron workers to do buildings, bridges . . . arenas . . . that type of work.” He commented, “We’re doing a little [bit] smaller work right now, but we’ve done large work in the past.” • The Hispanic American male owner of a DBE-certified professional services firm reported providing architecture and engineering professional services to cities, states, and private developers. • The African American female representative of an African American male-owned MBE/ DBE-certified specialty contracting firm reported, “[We are] a small, diverse trucking and construction company. . . .” • The white male representative of a Subcontinent Asian American male-owned MBE/DBE- certified professional services firm reported that they perform planning and engineering- related professional services. • The white female owner of a DBE-certified consulting firm reported, “It has changed a little bit . . . I’ve pretty much provided technical services for engineering and planning firms. And it’s been everything from doing utilities research, frontend research report writing [and] logistics for field work.” She added, “The work that I’ve done predominantly for the state DOT where the DBE [certification] became important to my clients, has been concentrated in the public involvement realm.” Types and Sizes of Contracts Performed and Determining Factors Many successful business owners expressed their ability to perform a wide range of sizes of contracts or have a target amount that they can perform successfully in the marketplace. For example: • The Native American male owner of a DBE-certified specialty contracting firm stated that the firm performs on heavy highway contracts with the state DOT, U.S. Forest Service, and small local projects. He added, “Our contracts are averaging in the $2 million range.” He further reported that the firm does not bid on state DOT prime contracts. • The Hispanic American male owner of a DBE-certified professional services firm reported “I would say . . . our contracts range from $5,000 to . . . our largest contract, [which] was $370,000. . . . I would say the average of our contracts is around $20,000.” • The Asian American female owner of a DBE-certified specialty contracting firm said that they go after contracts of all size; however, they do not bid as a prime on state DOT projects. She stated that, when bidding, her firm looks at whether there is work that her firm can perform on the scope of work and whether they can compete.

156 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program • The African American female owner of an MBE/DBE-certified professional services firm reported that her largest contract was with the state DOT for $2 million. She added that size of contracts is not an issue for her firm. • The white female owner of a DBE-certified specialty contracting firm reported that her size of contracts spans from $1,000 job at the airport to millions of dollars for city projects. • The Asian American male owner of a formerly DBE-certified professional services firm, who “graduated” from the program, reported, “We are one of the preferred [professional services firms] for . . . the largest electric and gas company in the state. . . .” • A Subcontinent Asian American male owner of a DBE-certified professional services firm indicated that types and sizes of contracts depend on the prime and what the prime has negotiated. • The Native American male owner of a DBE-certified specialty contracting firm stated, “Location has become a limiting factor.” He added that access to capital is also a limiting factor. • The African American male owner of a DBE-certified specialty contracting firm stated that bonding capacity determines contracts that he would bid, followed by location and competition. • A white female owner of a DBE-certified special services firm stated, “There are several factors that I have to look at, [such as] the amount of manpower to be able to serve the contract or the work to be done, [and making] sure that I have the resources to be able to do the work.” She added, “I have been frugal over the years. . . . I have the cash flow to . . . to handle payroll. I look at the type of prime contractors that I am going to bid with.” • The African American female representative of an African American male-owned MBE/DBE- certified specialty contracting firm reported, “They run about $200,000 or $300,000, and we did have a $1 million contract 2 years ago.” She added that the firm pursues contracts ranging from $200,000 to $1 million. • The white female owner of a formerly DBE-certified specialty contracting firm, who “graduated” from the program, reported that her bonding capacity of $2 million limits her bids to that size. • A Native American female owner of a DBE-certified specialty contracting firm reported that the scope and location of the project determines the type of project that she pursues. • The Hispanic American male owner of a DBE-certified professional services firm reported performing a wide range of contract sizes, from $2,000 to $2.5 million. • The white female owner of a DBE-certified consulting firm reported, “I go after projects that . . . are within my expertise. The decision is often made through long-term association with prime contractors. . . .” • Regarding the size of contracts on which she bids, the white female owner of a DBE-certified specialty contracting firm reported, “I bid [both] big [contracts] and little ones. Of course we all like the bigger ones, but you got to take the little ones too.” The same business owner added that her biggest job was for just over $1 million. She added, “And I got that as a subcontractor from a bridge builder.” • An African American female owner of a DBE-certified professional services firm stated, “[The size of contracts] really just depends. We work with a variety of sized firms.” She added that her firm often helps smaller companies with branding and advertising, and helps larger firms develop long-term campaigns and larger projects. She also noted that her firm does projects with higher education institutions, as well as with government entities including city, local and federal government. She stated that much of her work with different government entities are due to her firm being a part of the state’s Cooperative Purchasing programs. • The Hispanic American male owner of a DBE-certified professional services firm commented, “I’ve been all over the place. The largest contract probably was a $2 million contract. The smallest contracts are probably $50 thousand [or] $30 thousand.” When asked what determines these contract sizes, the same business owner replied, “It has to be based on your prequalifications. . . . You cannot apply to any DOT job unless you’re prequalified.”

Qualitative Information from Successful DBEs Regarding Business Success 157 • An African American male owner of a DBE-certified construction firm reported that his firm “stepped right into” middle and large-sized contracts because they were “doing a lot of public works.” He added, “When we started out at the collapse of the housing market, most of the stuff we were trying to do was public works. Either university work [or] DOT work, that type of thing.” The same business owner indicated that there were no opportunities in the private sector due to the housing market collapse. He said that he did “state, city and county transportation [contracts]” during the challenging times. • The white female owner of an SBE/DBE-certified professional services firm stated that there is no limit on the types and sizes of projects on which she performs. • The Hispanic American male owner of a DBE-certified specialty contracting firm reported, “The biggest . . . size of contract is $2.5 million at the max, and what’s considered is . . . bonding . . . availability . . . and also the time constraints within the project. . . .” • When asked about the types of contracts that the firm pursues, the white male representa- tive of a Subcontinent Asian American male-owned MBE/DBE-certified professional services firm reported that they bid on prime contracts with the state DOT. Work Performed as Prime Contractors/Subcontractors in the Public Sector (Especially DOT), Private Sector, or Both Business owners described the work that they perform in both sectors. Most reported working as subcontractors on state DOT projects. For example: • The Native American male owner of a DBE-certified specialty contracting firm stated that they perform in both sectors as subcontractors because they do not want to limit their oppor- tunities. He further reported that this has not changed over time. The same business owner also said that the firm works on public sector projects for coun- ties, public schools, the state DOT, and U.S. Forest Service. He added that work on school projects is often pro bono community support. • A Subcontinent Asian American male owner of a DBE-certified professional services firm reported working in both sectors as a subcontractor, though more often in the public sector. He added that most of his public sector work is for the state DOT. • The Asian American male owner of a formerly DBE-certified professional services firm, who “graduated” from the program, reported that they work most often in the public sector since “they don’t pay you” in the private sector. The same business owner added that they were lucky to have started working as a prime upon entering the DBE program, and that they have experience working as prime contractors on the state DOT projects. • The white woman owner of a DBE-certified specialty contracting firm reported that she works mostly in the public sector for the state DOT and local public entities. • The Hispanic American male owner of a DBE-certified professional services firm reported that they engage in both types of work. When asked how the work is divided, he said, “Public we are 85% and private we are 15%.” The same business owner added, “I would say . . . in terms of revenue we are . . . 60% . . . subconsultant and 40% as a prime.” He said that he has performed as a prime and sub- consultant for the state DOT, cities, and counties. When asked if this used to be different in the past, he stated, “The first year we were 85% as a subconsultant and 15% as a prime.” When asked why it changed over time, he responded, “I think that was part of our focus back then . . . when we are primes we are the tail of the dog, and we get treated like it.” • The white female owner of a DBE-certified construction firm reported that the firm performs entirely in the public sector as a subcontractor for the state DOT and counties.

158 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program • A white female owner of a formerly DBE-certified specialty contracting firm, who “gradu- ated” from the program, reported that her firm works in both sectors. She said that 70% of their work in the public sector is for the state DOT. She also reported working for the U.S. Army Corps of Engineers and other public entities. The same business owner added that her firm started performing as a prime 5 years ago and that her firm works on public sector projects in four states, all of which she is certified in. • The white male representative of a Subcontinent Asian American male-owned MBE/DBE- certified professional services firm reported that they perform 33% in the public sector and 66% in the private sector. He said that they work most often as subconsultants but noted that they have started to secure prime contracts with the state DOT. • A white female owner of a DBE-certified specialty contracting firm reported that the firm works 99% in the public sector. She added that she had mentioned to the former Hispanic American male owner, “Why are we doing private work anyway . . . lets go work for the state DOT.” She said that she likes working for the state DOT because payments are timely. • A white female owner of a DBE-certified special services firm stated that she always works as a subcontractor. She commented, “I don’t think that anybody who wants to have a serious business can focus on work that just your DBE qualifies you for. I have a better markup on private than I do on public. There is less paperwork on private, which frees up staff.” She added that when working in the public sector, her firm works for the state DOT, cities, coun- ties, and utility companies. • The white female owner of an SBE/DBE-certified professional services firm stated that she performs in both sectors, but most often in the public sector. She added that she mostly works as a prime for public sector entities such as the state DOT, cities and villages doing bridge inspections. • An African American male owner of a DBE-certified specialty contracting firm stated that he works about 70% as a prime and about 30% a sub. He said, “When I did a lot of work for the federal government, I was a prime; but for municipalities and the state, it is as a sub since they are trying to help fulfill goals for primes.” He added that the size of the projects and ability to bond are factors in whether to be a prime or sub. The same business owner stated that he works as a subcontractor for the state DOT, though he would like opportunities to work as a prime on those projects. He reported that his public sector clients are the state DOT, U.S. Army Corp of Engineers, federal government, BLM, U.S. Forest Service, and municipalities. • An African American female owner of a DBE-certified professional services firm reported that her firm works in both sectors, 70% in the public sector, and 30% in the private sector. She noted that they have worked in both since the firm was founded. She said that her public sector clients include the U.S. Department of Agriculture, U.S. Patent Trademark Office, the state DOT, port authorities, and other public entities. She stated that she works in both sectors “simply because when one is doing bad, the other is doing good.” The same business owner added, “When we initially started out we were small, and we looked for subcontracting opportunities which were few and far between. We had to kind of really establish our reputation, and then people started asking us to sub. Now we [are] prime on everything. And we’ll sub to other minority firms, or other just good firms. It just depends on the job and also who’s in that space that could do the job well.” • The Hispanic American male owner of a DBE-certified professional services firm reported that his firm performs “very little on the private [sector],” and added, “[We work] mostly public.” He went on to say his firm’s work is “only 3%” private sector. When asked what types of public sector entities that his firm works for, the same business owner responded, “[The state] DOT . . . the city and county offices . . . [and] small . . . state jobs. . . .” He added that his firm works as both a prime contractor and subcontractor, but commented, “I try my best to be a prime.”

Qualitative Information from Successful DBEs Regarding Business Success 159 • An African American male owner of a DBE-certified construction firm reported that he works in both sectors but noted that he chooses projects that do not require extensive financing. He added that most of the contracts he has in the public sector are subcontracting roles on DOT projects. • The Hispanic American male owner of a DBE-certified specialty contracting firm stated, “We have mainly done public sector work . . . [with] waste [management] and the local airport. . . .” He added, “The DOT came out with a race-neutral program . . . the SBE program. . . . These [contracts] allowed us to go out and bid [the] work. . . . I took the money we made and turn around and put it back into the business and bought additional resources that then allowed us to bid on a $1.5 million job that was an open bid the following year.” • A white female owner of a DBE-certified special services firm commented that she provides staffing for public sector DOT bridge and heavy highway construction projects. • The Asian American female owner of a DBE-certified specialty contracting firm said that her firm performs work in both the public and private sector. She explained that 80% of their work is in the public sector and 20% is in the private sector. She said that her firm works as a subcontractor on projects for the state DOT, cities, counties, and on military projects. She added, “We are never the prime . . . which is why we depend so much on [the DBE program].” • The Hispanic American male owner of a DBE-certified professional services firm commented that he works as a subconsultant for public sector entities such as the state DOT, BLM, U.S. Forest Service, military, and highway districts. He added that he was in the SBA 8(a) program previously which included set-aside work. • The white female owner of a DBE-certified consulting firm reported, “I’m typically a first-tier sub to a prime contractor that’s got the contract with the DOT, or with the municipality. . . .” She added, “There have been some projects that require very specific public involvement expertise that I’ve proposed on, and won, for DOT or the municipality.” • An African American male owner of a DBE-certified construction-related firm commented that he works in both sectors as a subcontractor on small projects. He said that he works in both sectors “to keep busy [and] keep something going.” • The African American female owner of an MBE/DBE-certified professional services firm reported that all of the work she performs in the public sector is as a subconsultant. • The Native American male owner of an MBE/SBE/DBE-certified construction firm reported that they mostly perform in the public sector as subcontractors. • A Native American female owner of a DBE-certified specialty contracting firm reported that she performs in both sectors as a prime and subcontractor, but most often as a subcontractor. Two interviewees reported performing less private sector work due to difficulties with pay- ment. Comments follow: • A white female owner of a DBE-certified specialty contracting firm reported working almost exclusively in the public sector as a subcontractor. She said that she performs “hauling” for the state DOT. Regarding private sector work, the same business owner said, “I got messed around with private work, so then I decided I wasn’t going to bid private work anymore.” She said that in the mid-1980s she went to a bank, and was told, “Look, there’s your profit. It’s all in this private work you’ve done that you can’t collect your money on.” She added, “So, that was the end of my private work. I decided . . . I won’t do private work unless I know I’m going to get my money. . . . From then on, I just did city and state, and federal work.” She added, “I work [in the private sector] once in a while, when I know it’s somebody that’s going to pay their bills. But there’s not been very much of that. . . . I couldn’t survive on private work here in [this state].”

160 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program • The African American female representative of an African American male-owned MBE/ DBE-certified specialty contracting firm indicated that the firm performs mostly in the public sector as a subcontractor; however, they occasionally are hired as a prime on private sector projects. The same business representative noted that the firm has not worked as a prime for the state DOT. She said, “We are not prequalified to bid as a prime . . . and that’s one of the areas where we had a problem.” She said, “We applied to be prequalified, but they said we didn’t meet their goals. . . .” She reported having spent funds to prequalify to no avail, and commented, “Had the DOT told us in advance what the qualifications had to be, we wouldn’t have wasted our time.” She added, “We work for the city, DOT, the county, and we work for various other small cities. . . . We [also] do work for . . . Regional Transit Authority, where we install concrete pads throughout the cities. . . .” Common Keys to Business Success Business owners had many comments about the keys to business success. Overall Business Success (Why or Why Not) Most business owners described their firms as successful. They identified reputation and quality of work, business longevity and building good business relationships with customers and others as key components to the success of their businesses. Comments include: • The Native American male owner of a DBE-certified specialty contracting firm reported that his firm is successful based on contract awards and that they can compete against corporations with billions of dollars of revenue. He said that his success is evident due to the firm’s ability to perform in marketplaces usually dominated by very large corporations. • A Native American female owner of a DBE-certified specialty contracting firm stated that their business is successful due to “relationships, work ethic from [their] management team . . . admin, [and] workers.” She added, “We work as a team. We run our operation intelligently [and] care about the little things which makes sure big things get taken care of. We aren’t frivolous with our choices and we don’t chase the market in bidding. . . . We bid based on our capabilities and not what others are doing.” • The Hispanic American male owner of a DBE-certified professional services firm com- mented that his success is evident by his firm’s name recognition, which “continues to grow.” • The white female owner of a DBE-certified consulting firm indicated that she considers the firm to be successful. She stated, “I think my success has a lot to do with always follow- ing through on my commitments, and . . . sort of being very professional in my approach.” She went on to say, “I was one of the very first independent [consulting] specialists in the state. . . . I think DOT would [describe] me as successful because I’ve worked for them for so many years on a variety of projects. . . . I’ve also been able to bring some innovative tech- niques that have been successful for the [DOT] in accomplishing their public outreach.” • The white female owner of an SBE/DBE-certified professional services firm stated that her firm is successful because they “have a positive reputation.” She added, “We have grown in a strategic manner. . . . People who work here like their jobs . . . [and are] excited to work, including me.” • An African American male owner of a DBE-certified specialty contracting firm stated that his business of almost 20 years is successful. He remarked that the firm “survived the hard times through the recession,” but commented, “I would think my company would have been a little bit bigger.”

Qualitative Information from Successful DBEs Regarding Business Success 161 • The Hispanic American male owner of a DBE-certified professional services firm said that his business is successful because he makes “a fairly good salary.” • The African American female owner of an MBE/DBE-certified professional services firm said that being in business for 20 years and employing 10 people is evidence of her success. • The white female owner of a formerly DBE-certified specialty contracting firm, who “gradu- ated” from the program, reported that her business is successful because they make a profit and they have funds to reinvest in the firm to expand product lines. The same business owner added that the firm invests in qualified employees and in good quality equipment. She commented, “[We] don’t buy the cheapest . . . [we] don’t pay [lowest wages], but [we] promote [efficiency] and . . . invest in training.” • The white male representative of a Subcontinent Asian American male-owned MBE/DBE- certified professional services firm said that being in business for over 10 years and employing over 50 people is evidence of the firm’s success. • The white female owner of a DBE-certified construction firm reported that the firm is success- ful because they’ve been in business for almost 30 years and employ over 40 people. • The Native American male owner of an MBE/SBE/DBE-certified construction firm said that his firm is successful because they’ve had an $8.5 million DOT-funded subcontract for over 3 years. • The African American female representative of an African American male-owned MBE/ DBE-certified specialty contracting firm reported that the firm is successful. She said, “We always finish our jobs . . . we cooperate with the prime . . . and address any concerns. . . .” • The white female owner of a DBE-certified special services firm said that their firm is success- ful “because [they] pay [their] bills . . . and . . . still have money left over.” • A white female owner of a DBE-certified specialty contracting firm commented, “I’ve sus- tained, so I guess you would say I’m successful. . . . I’m okay, financially.” • The white female owner of a DBE-certified specialty contracting firm reported that her firm is successful because during the housing downturn of 2008 she was able to hire workers for an abundant amount of work. • The Hispanic American male owner of a DBE-certified specialty contracting firm stated, “I would say . . . we’ve been successful mainly because the doors are still open, and we’re blessed that we’re not only feeding my family, but the families of the people that work for us and . . . haven’t had to lay anyone off or fire anyone over the last couple years.” • The Asian American female owner of a DBE-certified specialty contracting firm remarked, “We are still in business. . . . I think part of it is we were really active in the DBE program. . . . A lot of our success came from the DBE/UDBE program.” She added that DBE contract goals “opened up the door for [them].” Some business owners reported that barriers to success include competition, low profitability, and slow growth. Comments include: • When asked if he considers his firm to be successful, the Hispanic American male owner of a DBE-certified professional services firm stated, “I don’t think I am successful because I haven’t gotten any prime contracts in the last few years.” The same business owner added that competition with larger firms is a barrier to his suc- cess. He said that earlier in his career “there were less companies, and . . . less competition.” He went on to comment, “It’s more difficult to compete with the larger companies.” When asked if these larger companies are also DBE firms, he stated, “No, [they’re] big . . . national companies.” • An African American male owner of a DBE-certified construction firm reported, “Success is always measured in profitability. So, we’re sometimes profitable and sometimes not. [If] you measure success by [us still being] here and getting work, I’d say we’re successful that way. Our profitability is down, currently.”

162 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program • The white female owner of an SBE/DBE-certified professional services firm commented that “some DBEs really rely on others for their success. Some struggle to meet qualifications and look for mentor-protégé [relationships], which is an uphill battle if you don’t have the tech- nical skillset. . . .” • An African American male owner of a DBE-certified construction-related firm commented, “It’s all about capital and you’ve got to grow [to be a successful DBE].” • An African American male owner of a DBE-certified construction-related firm indicated that his firm is only successful on a small scale. He said, “It’s a long way to go to be what I would call a real successful business.” “Hard Work,” Quality of Work, and Longevity as Key Factors to Business Success Most business owners concur that “hard work” and quality of work are key factors to busi- ness sustainability and success. For example: • The Native American male owner of a DBE-certified specialty contracting firm indicated that the “hard work” performed by his firm is a key to success. He added that his business model and ethnicity are also factors to his firm’s success. • When surveyed, the white female owner of a DBE-certified professional services firm attrib- uted part of her company’s success to “quality of service.” She noted that some clients struggle to find quality DBEs. • An African American male owner of a DBE-certified construction-related firm reported that as sole employee of the firm, his work ethic is a key to his success. • The white woman owner of a DBE-certified specialty contracting firm reported that owners must do much of the work to be successful. She said that she “answers phone[s], does taxes, payroll, and dispatches trucks.” • The white female owner of a DBE-certified construction firm reported that business lon- gevity, reliability, and quality work are keys to success. • The white male representative of a Subcontinent Asian American male-owned MBE/DBE- certified professional services firm indicated that quality of work and relationships are key to success. • Regarding factors that contribute to his firm’s success, the Hispanic American male owner of a DBE-certified professional services firm said, “I believe it’s [mainly] the knowledge of how to grow and run a business, the second is the connections to be able to get work . . . and the third is quality of work.” • The Native American male owner of an MBE/SBE/DBE-certified construction firm reported that his union signatory, quality of work, and delivery on time are keys to success. • The white female owner of a DBE-certified specialty contracting and supply firm reported that her business success is based on good quality work and her ability to communicate with customers. • A white female owner of a DBE-certified specialty contracting firm commented, “I [attribute] my success to doing a good job and doing what I said I was going to do.” She added that a prime contractor told her, “When problems have come up in the past . . . you always stood up to the plate and took responsibility, no matter what. Good or bad, you did what you said you were going to do, and you stuck with it.” She added, “That’s how we made it. I did what I said I was going to do, and I got the job done.” • A Subcontinent Asian American male owner of a DBE-certified professional services firm reported that his firm is successful. He said that the people that he associates with have

Qualitative Information from Successful DBEs Regarding Business Success 163 supported him nicely, that he has a “dog-headed nature” and that he shows up every day. He mentioned that the support by his clients has also helped his company be successful. Quality Employees a Key Factor to Business Success Business owners agreed that quality, diverse, and well-trained employees are key factors to business success. Comments include: • The white female owner of a formerly DBE-certified specialty contracting firm, who “gradu- ated” from the program, reported that the firm invests in quality employees and offers them training. • When asked about key factors to her firm’s success, the Native American female owner of a DBE-certified specialty contracting firm commented, “Value the employee and try to provide them a different atmosphere to work in than [other] places. We have parties and events that get employees involved, and we have wellness programs.” • The white woman owner of a DBE-certified specialty contracting firm reported that “making sure to take care of your employees” is a key factor to success. • The white male representative of a Subcontinent Asian American male-owned MBE/DBE- certified professional services firm remarked that “great dedicated and supportive employees” are key factors to the firm’s success. • The white female owner of a DBE-certified specialty contracting and supply firm reported that she has good employees and has had the same foreman for almost 30 years who has been instrumental to the firm’s success. • A white female owner of a DBE-certified special services firm reported, “I have good employees with good paying jobs. . . . We facilitate work for contractors in order for them to safely . . . do the work. . . .” • An African American male owner of a DBE-certified construction firm reported that “having access to quality labor” and relationships are keys to success. He commented, “Knowing the right guys . . . having them look out for us or give us work . . . or work with us on price [is also important].” Business Plan and Marketing Acumen as Key Factors in Business Success Business owners expressed the need for good business and marketing plans to increase busi- ness growth. Comments include: • The white male representative of a Subcontinent Asian American male-owned MBE/DBE- certified professional services firm remarked that their business model, which “grew out of the DBE program,” and their variety of services are keys to their success. • The Hispanic American male owner of a DBE-certified professional services firm said, “Market, market, market, then perform, perform, perform. . . .” • The Hispanic American male owner of a DBE-certified professional services firm commented, “The fact that I have many years of experience [and have] senior people mentoring younger people and being very aggressive with marketing [have led to my success].” • A white female owner of a DBE-certified special services firm commented on the importance of good business plans. She said, “Not letting my company outgrow me . . . finding different markets . . . not max[ing] out credit cards . . . not get[ting] overloaded with debt [have con- tributed to my success].”

164 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program • The white female owner of a formerly DBE-certified specialty contracting firm, who “gradu- ated” from the program, reported that a key to her success is understanding work scope and the specifications of projects as well as “knowing the rules to play by.” Relationships, Professionalism, Ethics, and Repeat Customers as Keys to Business Success According to many interviewees, a common factor to business sustainability and success is relationship-building with customers and others. Comments include: • The Asian American male owner of a formerly DBE-certified professional services firm, who “graduated” from the program, said, “It’s all about trust, I was part of the DOT for [almost 20] years.” He added that his firm had “great” relationships with other firms that had worked on DOT projects. • An African American male owner of a DBE-certified specialty contracting firm reported that in addition to expanding his work types, he built relationships with customers, primes and suppliers who stood by him “when times were rough.” • The African American female representative of an African American male-owned MBE/DBE- certified specialty contracting firm reported that the firm’s success is due to good relationships with primes and “doing the job 100%.” She added, “I [also think] it’s [the] service . . . that you provide.” She indicated that relationships with customers also contributes to DBE firms’ success. • An African American female owner of a DBE-certified professional services firm stated that her success is due to a good reputation and having a positive impact on the community. She added, “I think [paying it forward] just really represents who we are, [along with] the people we hire, our client base [and] so many other things. And that, to me, means success and it means growth. . . .” The same business owner noted the importance of relationships, saying, “When I look at how we’ve grown in the past . . . we have been really strong in relationships.” She also said that her firm had accounts for much longer than is normal in the industry, but expressed the importance of generating new business, saying, “You can’t just be complacent.” • The white female owner of a formerly DBE-certified specialty contracting firm, who “gradu- ated” from the program, commented that the biggest key to her firm’s success is “tak[ing] care of customers.” • The white female owner of a DBE-certified consulting firm indicated that following through on commitments and having a professional approach are keys to business success. • When surveyed, the Hispanic American male owner of a DBE-certified construction firm commented that DBEs should “do what [they] say and say what [they] mean.” He also said that DBEs should not expect “handouts.” • A Native American female owner of a DBE-certified specialty contracting firm stated that perspective primarily makes one DBE more successful than another. She said, “What I have experienced [is that] there are entitlement expectations from many DBEs, and that is a bad perspective to start a business. I have been embarrassed to be in the same meetings because I don’t expect anybody to give me work because I am a DBE. It’s a counterproductive mind- set to have.” • The white woman owner of a DBE-certified specialty contracting firm reported that honesty in business is a key factor to her success. She added, “You have to be able to play well with others, and you can’t cutthroat people.” • The Native American male owner of a DBE-certified specialty contracting firm said that “atti- tude” is a very big contributing factor in making one DBE more successful than another. He added that access to capital also contributes to business success. He noted that their business

Qualitative Information from Successful DBEs Regarding Business Success 165 model is to offer services that have never been offered before and said that the “uniqueness” of their offerings contributes to their success. • The African American female owner of an MBE/DBE-certified professional services firm reported that repeat customers and “dedicated, reliable and quality employees” are keys to success. • Regarding his success, the Hispanic American male owner of a DBE-certified specialty con- tracting firm commented that the support from his state’s DOT has been helpful. Two business owners noted the importance of well-maintained equipment, materials, and access to affordable pricing when operating a successful business. Comments follow: • The Native American male owner of a DBE-certified specialty contracting firm stated, “In the beginning, I knew in order to be successful . . . in this industry, we were going to have to get bigger. . . . I knew to get on . . . that level, [it] was going to require millions [of dollars] in equipment. . . .” He added, “I started small, and as this thing started to kick-off . . . I never thought I would be able to afford to purchase the necessary equipment items because it was dominated by big business. We just reinvested . . . [and] I was able to shop and find equipment. . . . We were able to find machinery at a quarter of [the] cost.” • The white female owner of a formerly DBE-certified specialty contracting firm, who “gradu- ated” from the program, reported that maintaining good working equipment is key to her firm’s success. Times When Business Success Was Unclear Most business owners reported that at times their success was unclear, especially at business start-up. For example: • The Hispanic American male owner of a DBE-certified professional services firm commented, “I started small and tried to move on solid ground. . . . The first 3 years . . . the perception of other people was, ‘Are these guys serious?’” • The Asian American female owner of a DBE-certified specialty contracting firm reported that there have been times when her firm spent weeks on certain bids and prime contractors used big businesses instead. She elaborated, “If there is no incentive for [prime contractors] to sup- port small business . . . typically they don’t.” • The white female owner of a DBE-certified specialty contracting and supply firm reported that during a family crisis she faced a downturn in business and feared that the business would fail. • The Hispanic American male owner of a DBE-certified professional services firm reported that he survived on “rice and beans” after “a couple of projects [went] south.” He explained, “I didn’t make any money. . . . A developer went out of business and I lost $100,000.” • The white woman owner of a DBE-certified specialty contracting firm reported that “everything was challenging . . . [including] finding good drivers [and] insurance.” • The African American female representative of an African American male-owned MBE/DBE- certified specialty contracting firm reported, “Well, there’s been a few times where we’ve bid on a few jobs that weren’t turning out as profitable as we had expected.” She said that her firm “didn’t just walk away from [the jobs],” but finished them despite their lack of profitability. • The white female owner of an SBE/DBE-certified professional services firm stated that there was a time when she had a 2-year “as-needed” contract with no earnings during the first year; however, the second year was better. • An African American male owner of a DBE-certified specialty contracting firm stated, “When I had worked under a large prime contractor on a major project . . . and we weren’t being treated appropriately . . . I lost a lot of money. . . . I was on the verge of closing my doors.”

166 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program • The white female owner of a DBE-certified consulting firm said, “Since I work in [consulting services], sometimes the challenge for the project comes from the level of controversy sur- rounding the project itself. . . .” • A white female owner of a DBE-certified specialty contracting firm commented that she faced challenges in the 1980s. However, she noted, “I just kept working through it.” • The white female owner of a DBE-certified specialty contracting firm reported that one Thanksgiving she had to lay off eight employees, but fortunately was able to hire them back soon after that. • When asked if success was ever uncertain for her firm, an African American female owner of a DBE-certified professional services firm reported, “Absolutely. . . . I even feel that way today. I’m not completely satisfied where we are now.” She noted that the firm has “had a couple of down years recently, simply because [they] have had account changeovers.” The same business owner continued, “Those changeovers have a lot to do with change in personnel, change in industry, [and] sometimes the political environment that we live in. . . .” She also added that the industry is always changing, and while her firm has been complacent in terms of finding new business, they need to find new avenues of business. • The Hispanic American male owner of a DBE-certified professional services firm reported, “In the beginning . . . it was difficult.” • The Hispanic American male owner of a DBE-certified specialty contracting firm commented, “We have been very fortunate. . . . I have tried very carefully not to extend ourselves . . . to minimize risk. . . .” Some Business Owners Cited Financial Hardship as a Reason for Doubting Their Firms’ Success • When asked if success was ever unclear, the Asian American male owner of a formerly DBE- certified professional services firm, who “graduated” from the program, said that “over- coming the financing at the beginning was the most challenging.” • A male representative of a Subcontinent Asian American male-owned DBE-certified professional services firm said “of course” there were times where it was unclear if the firm would be successful. He said that cyclical funding from Washington, D.C. has presented challenges to the firm’s cash flow. • The white female owner of a formerly DBE-certified specialty contracting firm, who “gradu- ated” from the program, reported that at start-up she faced challenges that made success unclear. She reported, “At the time that we started this company, we used grant money and we were on food stamps and public assistance. There was no [other] option. If it didn’t succeed, I would have to work in the field.” The same business owner added, “The first 2 years I didn’t cash a paycheck and only put ramen on the table. . . . I only had 30-day terms with some vendors and took all the money and reinvested it back in the company. We lived in a 1,100-square-foot house with a fenced yard for drums. . . .” • An African American male owner of a DBE-certified construction firm reported, “We over- came [early uncertainty] by finding [other] sources of financing. We borrowed money from private equity funds . . . to bridge the gap.” He added that he “leveraged relationships with contractors to speed up payments.” He went on to comment, “Things are picking up. . . .” A Few Business Owners Reported Confidence in Their Firms’ Success with No Concerns That Success Was Not Guaranteed • A Native American female owner of a DBE-certified specialty contracting firm commented that there never was a time when business success was unclear. She said, “We have had dif- ficult times, but that hasn’t been our mindset. I do not believe there are times that it was clear that we would not be successful.”

Qualitative Information from Successful DBEs Regarding Business Success 167 • The African American female owner of an MBE/DBE-certified professional services firm reported that it was never unclear whether her firm would achieve success. • A white female owner of a DBE-certified special services firm commented that she was unsure for a very short time whether she would be successful. She said, “If [I was unsure], it was for a short time. . . . I never thought that I wouldn’t succeed.” Overcoming Business Challenges/Help with Business Issues or Challenges Many business owners offered insights on their and others’ ability to overcome challenges. For example: • When asked how he overcame challenges, the Hispanic American male owner of a DBE- certified professional services firm said, “At the beginning, it was a different type of business. You had to go and visit the different districts in the state and . . . tell them what you do. And so, that worked very well. But then it changed [when] they centralized everything, and you [have to] get prequalified [now]. And so that changed the dynamics of . . . how to get the contracts.” The same business owner, when asked if he got any help along the way regarding these new processes, said, “No, not really. Everything was based on having the necessary experience they needed. . . .” • A white female owner of a DBE-certified special services firm indicated that to overcome a business challenge she closed one of her firm’s non-profitable branch offices. When asked if she had help along the way to success, the same business owner reported that she attended SBA workshops and spoke to a counselor, which “threw [her] over the hump and [she] started growing.” • When asked how she overcame business challenges, the white female owner of an SBE/DBE- certified professional services firm stated, “I cashed in my 401(k). . . . Had the project gone into a second year with no work, I would have been in trouble.” When asked if she had help along the way, the same business owner stated that she received help from two female DBEs in her industry that helped her with the DBE process, prequalifi- cation, and paperwork. She added that business development assistance provided by the state DOT and the local ACEC branch were helpful. • An African American male owner of a DBE-certified specialty contracting firm reported that when he faced challenges, his suppliers were willing to give him more time to pay because they understood the circumstances and that paying late was not his usual way of conducting business. When asked if he had help along the way to success, the same business owner reported that Wells Fargo offered him help by approving a credit line and a repayment schedule for his out- standing loans. He also reported getting help from a small contractor development program that helped with guidance and training. • The white female owner of a DBE-certified specialty contracting firm reported that her ability to adapt helped her to overcome business challenges. She commented, “We are more success- ful because we’re willing to change.” • Regarding overcoming business challenges, an African American female owner of a DBE- certified professional services firm said, “There’s so many challenges that we deal with in relationships and change of personnel on both sides, you really have to have a balance. You can’t be overdependent on one [sector]. And then sometimes when you specialize so much, you never know how that industry is going to change, and if you don’t have a plan B or have other clients, that could really cause some problems for you.” • An Asian American male owner of a formerly DBE-certified professional services firm, who “graduated” from the program, reported that the state DOT hired a CPA firm to vet banks that would “front money” for primes after contracts were awarded.

168 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program • An African American male owner of a DBE-certified construction-related firm reported that growing his business was important. He added that some primes “are pretty slick,” and com- mented, “They know you’re a little guy, and they take advantage. . . .” The same business owner reported that he has not come across competition from other DBEs. However, he added that some DBEs “are questionable,” while some contractors are from the “good ol’ boy” network and others take advantage of “good faith efforts.” • When asked about overcoming business challenges as a small business, the Hispanic Ameri- can male owner of a DBE-certified professional services firm commented, “Dust yourself off and move on. . . .” Business Competition (DBEs, Non-DBEs, or Both) Business owners reported that their competitors are sometimes DBEs as well as larger, more established firms. For example: • The Native American male owner of a DBE-certified specialty contracting firm reported that his firm has four non-DBE competitors in the marketplace. • An African American male owner of a DBE-certified specialty contracting firm commented that his competition includes 30 to 50 competitors. Of those, he added, five are DBEs and five to 10 are ESBs. • The Hispanic American male owner of a DBE-certified professional services firm reported that he has “boutique DBE” competition who offer archaeology and wildlife biology services. • A Subcontinent Asian American male owner of a DBE-certified professional services firm reported that his firm has some DBE competitors. • The white female owner of a DBE-certified specialty contracting and supply firm reported that her firm faces competition from five non-DBEs and three DBE-certified firms. • The white female owner of a formerly DBE-certified specialty contracting firm, who “gradu- ated” from the program, reported that her firm has 22 competitors, of which about 15 are DBEs. • The white male representative of a Subcontinent Asian American male-owned MBE/DBE- certified professional services firm remarked that they have three DBE competitors and 12 majority-owned competitors. • The African American female representative of an African American male-owned MBE/DBE- certified specialty contracting firm reported, “We have non-DBEs that are competitors, and we have some DBEs that are competitors. . . . So, we have competitors, plenty of them.” She added, “Just because we’re a DBE doesn’t mean that we’re getting any special- ized treatment . . . or [that] somebody’s giving us anything, because they’re not. . . . We have to be in it just like anybody else.” • A white female owner of a DBE-certified special services firm reported that she has about 50 to 75 DBE-certified competitors. • The white female owner of an SBE/DBE-certified professional services firm stated that her firm has 50 competitors, of which 10 are DBEs. • When asked if his firm’s main competitors are DBEs or non-DBEs, the Hispanic American male owner of a DBE-certified firm stated, “Both . . . lots of DBEs [and non-DBE], larger companies.” Some interviewees indicated that most of their competitors are non-DBEs. Comments include: • The Hispanic American male owner of a DBE-certified professional services firm reported that he has competition from 30 very large firms. He added that he often attempts to work as a subconsultant to these large firms. • The African American female owner of an MBE/DBE-certified professional services firm reported that she has no DBE-certified competitors; however, she has many prime consultants as competitors.

Qualitative Information from Successful DBEs Regarding Business Success 169 • The Asian American female owner of a DBE-certified specialty contracting firm said that she has two competitors that are “big business.” She said, “We are the only women-owned small business doing what we do in the state. . . .” • The white female owner of a DBE-certified consulting firm said that when she first started out she had few competitors, which allowed her to “get [her] finger in the door.” She added, “Over time, some of the engineering firms that I work with decided that [my consulting services] was a business sector that they wanted to bring in-house. . . . So, over time my competition has become those engineering and planning firms that . . . were clients in the early years, and now they’re competitors.” • An African American female owner of a DBE-certified professional services firm stated that they compete with firms of all sizes, though their biggest pool of competitors are non-DBEs. She noted that her experience of working in a larger firm gave her a competitive advantage when competing with bigger firms. • The Hispanic American male owner of a DBE-certified specialty contracting firm reported that most of his competitors are non-DBEs. A Firm’s “Fit” in the Marketplace Compared to Other Certified Firms Many owners of certified businesses reported that their companies are more successful than others in the marketplace. Some commented that they were “middle of the range” in terms of success. For instance: • The Hispanic American male owner of a DBE-certified professional services firm commented, “We are more successful . . . and [we are] invited [to do work] before we [have to] ask. . . .” • A Subcontinent Asian American male owner of a DBE-certified professional services firm said that his firm is “middle of the range” in terms of successful DBEs. • The white female owner of an SBE/DBE-certified professional services firm stated that other DBEs consider her firm to be successful in a male-dominated industry. She added that she has had opportunities to talk at DBE conferences about strategic planning, “and the things that you don’t learn in engineering school.” • An Asian American male owner of a formerly DBE-certified professional services firm, who “graduated” from the program, stated, “We were a lot more successful [than others]. We were a prime, and when you’re a prime you can kind of [have] leverage. . . . A lot more financing became available where they had the mega projects . . . and some other jobs where the DBE goal was 20 [to] 25%. . . .” The same business owner added, “The big companies would actually come to us to recruit us, and say, ‘Okay, why don’t you be a prime on this section and we’ll be a sub to you on this section, and you’ll give us the work.’ When the goals were high, it was a great time for my firm.” • The Native American male owner of a DBE-certified specialty contracting firm said that he is the first DBE performing his type of work in the marketplace. • The white male representative of a Subcontinent Asian American male-owned MBE/DBE- certified professional services firm indicated that the firm is more successful than other DBEs. He said that they are “on top.” • The white female owner of a DBE-certified specialty contracting and supply firm reported that while she is not sure how her firm compares to other DBEs, she believes they are competitive. • When asked if she considers the firm to be as successful, less successful, or more success- ful than competitors, the African American female representative of an African American male-owned MBE/DBE-certified specialty contracting firm said that the firm is as successful, because they “fit right in with their price, [and] have to . . . have a competitive price.” Regard- ing competition, she commented, “If it’s a milling job, we can offer trucks, [but] somebody else can get it if they offer milling [as well as trucks], because it will be cheaper.”

170 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program • An African American male owner of a DBE-certified specialty contracting firm commented, “I am more successful based on the type of work we are capable of doing. There are a num- ber of DBEs who aren’t able to do underground work [and] don’t have equipment or man- power.” He added, “I have taken the chance, the challenge, and devoted myself to gaining experience . . . building relationships, working in areas in [the state] where you don’t see DBEs working.” • The Hispanic American male owner of a DBE-certified specialty contracting firm stated, “We are probably a little more successful than others.” A few business owners indicated that their firms are less successful than other DBEs in the industry. Comments include: • The Hispanic American male owner of a DBE-certified professional services firm remarked, “I would say [we’re] less successful. And that is because we’re limited by the prequalifications.” • When asked about her firm’s competitiveness, the white female owner of a DBE-certified spe- cial services firm said, “It changes every time you have an influx of new companies, because they don’t know how to bid and prime contractors take advantage of [that].” • The white female owner of a DBE-certified consulting firm said, “Right now, I think I’m kind of at a crossroads because I’m personally on the . . . slow taper to retirement.” She continued, “Right now the work in my sector is falling off a little bit, and [that] has to do with state and federal funding reductions, and it has to do with competition and . . . other funding issues.” • An African American male owner of a DBE-certified construction firm reported, “Right now, we’re less successful than one of our competitors and more successful than one, and probably about even with [another].” Firms’ Success at Securing Work to Meet DBE Contract Goals (Why/Why Not) Business owners described their ability to secure opportunities on projects with DBE contract goals. Most reported success. Comments include: • The white female owner of a DBE-certified consulting firm reported that primes often utilize her firm when contract goals exist. She said, “[We’re] very successful in the work that [has] a DBE goal. I have clients that will only call me when there [are] incentive points in the request for proposal. . . . And probably my bread and butter clients are the ones that I have been com- pleting quality work [for], and they would hire me regardless of the DBE points.” The same business owner continued, “A lot of the professional services solicitations for FHWA work have become race-neutral [with] no incentive points for . . . DBE use on a proposal, even though . . . the [state] DOT still has to meet the FHWA goals. I have a lot of colleagues in the women-owned business arena that are getting started, and they’re having a heck of a time establishing themselves because there’s no incentive to use them if we go race-neutral.” • The white female owner of a formerly DBE-certified specialty contracting firm, who “gradu- ated” from the program, reported that when her firm was DBE-certified they were hired for a lot of goal work. She added that since the firm has “graduated” from the DBE program, her revenue has dropped by 10% or less from ineligibility of goal work. The same business owner added that before “graduation,” their “whole strategy [was] to be a good contractor versus being a good DBE contractor.” She said, “We have a fundamen- tal mindset . . . don’t run as a DBE; run as a contractor.” She added, “We wanted to win all projects.” • The Hispanic American male owner of a DBE-certified professional services firm commented, “We are in many instances are being used to meet a goal.”

Qualitative Information from Successful DBEs Regarding Business Success 171 • An African American female representative of an African American male-owned MBE/DBE- certified specialty contracting firm indicated that the firm is sometimes used to meet a DBE contract goal. She said, “It depends. You have some DBEs that [primes] use because they can be manipulated, [or] the price can be manipulated. [Primes] can say they’re using them, [but] they [abuse] them.” • A white female owner of a DBE-certified special services firm reported that primes hire her firm to meet contract goals. • An African American male owner of a DBE-certified specialty contracting firm reported that he works on projects with goals, though not for primes that are DBEs. He added that at times he thinks that primes use his firm to meet “good faith efforts,” and commented, “They called and reached out, but did not use me.” In order to improve his chances of securing work with primes, the same business owner added that he networks with primes and tells them about his company and capability. He said, “I think it make me more successful [with them].” • An Asian American male owner of a formerly DBE-certified professional services firm, who “graduated” from the program reported, “We were . . . 100% prime. We were not a sub and when the goal started being more than 10%, then our business became 60% prime [and] 40% sub. And once the goal went back to 10%, then basically our work was 100% prime [again].” • A male representative of a Subcontinent Asian American male-owned DBE-certified profes- sional services firm said that primes often use the firm to meet goals. He added that the firm is also on “stand-by” DBE subcontractor lists. • The African American male owner of a DBE-certified construction firm stated, “I think we are [used to meet goals]. I think [it’s] because we’re dependable and we . . . can offer flexible services. We do quite a bit with the ironworks, we can do post-tensioning, rebar, and erection. I don’t think any of our competitors can do all three.” He said his firm also has experience with removable bridges that his competitors lack. • The Hispanic American male owner of a DBE-certified specialty contracting firm reported, “We have been successful getting work with contract goals.” • When asked if prime contractors use the firm to meet DBE contract goals on projects, the white male representative of a Subcontinent Asian American male-owned MBE/DBE-certified professional services firm indicated that primes use them because of their “variety of services and reliability.” • The white female owner of a DBE-certified specialty contracting and supply firm reported that she sometimes secures work because of DBE contract goals. • The Asian American female owner of a DBE-certified specialty contracting firm said that her firm is usually one of the subcontractors chosen to meet DBE goals, though some primes hire contractors they already know. Some business owners indicated that their firms are less successful at obtaining work with DBE contract goals. Comments include: • When asked if her firm is successful at securing work with DBE contract goals, the African American female owner of a DBE-certified professional services firm stated “No.” She explained, “I have had many challenges in going after work that has a DBE goal. And I’m still trying to figure out why on some of those contracts, you could be 100% DBE . . . and that doesn’t seem to count towards what you also have to sub out.” The same business owner added that strong relationships are a key factor in securing work with DBE contract goals. She explained, “They know what they get. . . . [They know if] you’ve done a good job, you’ve proven yourself, [if] you add value to their contract. . . .” • The Hispanic American male owner of a DBE-certified professional services firm reported that he has not been successful at securing work where contract goals exist. He commented,

172 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program “The DOT has DBE goals, but [they’re] for other projects [we don’t do]. The ones that we normally get [don’t] really specify . . . DBE. . . . It’s not like you have to be a DBE and [you’ll get] a percentage.” When asked if his firm has methods to try and be more successful, he said, “We try. We visit . . . different companies [and] state groups.” He added, “But . . . in the DOT, it’s not that way. That one is how many people you have that [specialize in] what they’re asking for. And so that becomes . . . like the chicken or the egg, right? If I don’t have the person [needed], then I have to show them I’m going to bring [them] in. But I have to hire first, and that’s very difficult.” He went on to comment, “I can’t pay [new employees] . . . with the hope that I might get the contract.” • The white female owner of a DBE-certified specialty contracting firm reported that primes do not often use her firm to meet contract goals since the state DOT puts their funding into work that her firm does not perform such as highways and street construction. Firms’ Success at Securing Work Without DBE Contract Goals (Why/Why Not) Some business owners described their ability to secure opportunities when contract goals do not exist. Others were not as successful. For example: • The Native American male owner of a DBE-certified specialty contracting firm indicated that his firm does secure contracts on projects without goals; however, he is not always successful since the bidding is competitive. He added that it is his firm’s “uniqueness” and their ability to perform multiple types of work helps in securing opportunities. • When surveyed, the Hispanic American male owner of a DBE-certified construction firm indicated that his firm can win non-goal work if they pursue it. He said that if his firm never certified as a DBE, they would “do more work on non-goals contracts and less [work] on contracts with goals.” • The Hispanic American male owner of a DBE-certified specialty contracting firm reported that he gets called for work without goals because “he is a good contractor.” He added that about 20% of his work is from such work. • The African American female owner of an MBE/DBE-certified professional services firm reported that she secures work when goals are nonexistent since she is the lone DBE in her industry. • The Hispanic American male owner of a DBE-certified professional services firm reported that he does obtain work without goals. He went on to say that his state DOT recently reacti- vated goals for DBEs. • A white female owner of a DBE-certified special services firm reported that primes still hire her firm when there are no contract goals on a project. • The Hispanic American male owner of a DBE-certified professional services firm indicated that his firm does obtain contracts on state DOT projects that do not have DBE goals. How- ever, he said the contracts his firm pursues usually do not have DBE participation goals. He went on to say that larger DBE firms with the capacity to hire more employees are probably more successful at winning these contracts. • The Hispanic American male owner of a DBE-certified professional services firm reported they have won contracts without DBE/MBE/WBE goals on two different occasions. He noted, “As time passes we get better at [winning contracts without goals].” • An African American female representative of an African American male-owned MBE/ DBE-certified specialty contracting firm indicated that the firm wins contracts without goals when they are the low bid. She added that the firm’s ability to win also depends on the prime.

Qualitative Information from Successful DBEs Regarding Business Success 173 • A Subcontinent Asian American male owner of a DBE-certified professional services firm reported that they are successful at securing work on projects with goals. He added that they are often invited to work on prequalified projects as a subcontractor. • The white female owner of a DBE-certified consulting firm indicated that her firm secures work without the help of DBE contract goals. She said, “I think what [has] won me contracts is just developing [a] reputation for getting the work done and performing and working with the clients. I’ve had great communication with most of my clients, both the . . . owner and the engineering contractor.” She added that success comes from “doing what you say you’re going to do, and doing it well, over and over.” • The white female owner of a formerly DBE-certified specialty contracting firm, who “grad- uated” from the program, indicated that her firm was successful at securing non-goal work. She said, “We have more resources [than competition]. In our scopes, the DBEs we compete against don’t perform, so they don’t have a good reputation. They don’t under- stand specs.” • A white female owner of a DBE-certified specialty contracting firm indicated that she is successful at obtaining non-goal work because her state DOT is “low bid.” She said that effi- ciency and overhead are factors in her ability to meet the standards and secure subcontracts. • A white female owner of a DBE-certified special services firm indicated that her firm occa- sionally obtains work with no DBE contract goals. She said, “When I am looking at a project and it has bid items that I can provide, I will pull the plan holders list and ask how they will utilize the bid items. . . .” Two business owners reported being unsuccessful at securing work with no DBE contract goals. Comments follow: • When asked if her firm is successful at obtaining work with no DBE contract goals, the Asian American female owner of a DBE-certified specialty contracting firm responded, “No.” She said that her competitors have multiple revenue sources, which allows them to spread and lower the cost of their bids. She added, “When there is nothing like a DBE goal in there, that makes it all the easier to . . . dismiss us.” • When asked if her firm is successful at obtaining non-goal work, the white female owner of a DBE-certified consulting firm stated, “No.” She explained, “I have done almost all of my work . . . on the professional service RFP side of the procurement.” What Makes One DBE-Certified Firm More Successful than Another Owners of certified firms offered many reasons why some DBEs are more successful than others. Factors were performance, business acumen, relationships, and access to capital, among others. Comments include: • An African American male owner of a DBE-certified specialty contracting firm reported, “It boils down to what I am able to perform and the type of work that I perform. . . .” • When asked what makes one DBE more successful than others, the white female owner of a DBE-certified consulting firm said, “Over the years I’ve gotten feedback from . . . clients, and I’ve been told point blank, ‘[We’d] like to use you on these projects because you perform.’” The same business owner added, “When the DBE programs were just getting kicked- off, there were DBE businesses that were starting up and . . . weren’t performing, and the prime was kind of stuck with the poor-performing subcontractor because they [were] caught between needing to meet the goals and needing to get the project done. . . . I got the impres- sion that sometimes DBEs were just paid off, but the prime had to pick up the work that the DBE underperformed.”

174 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program • The Hispanic American male owner of a DBE-certified professional services firm said that knowledge of “bidding, contract law, estimating, operations, marketing, accounting and finance” make a firm more successful than others. • An Asian American male owner of a formerly DBE-certified professional services firm, who “graduated” from the program, said, “I think [it’s] how you treat people, how you recruit . . . what the client thinks . . . [and] how you retain them.” • The white female owner of a formerly DBE-certified specialty contracting firm, who “gradu- ated” from the program, commented, “Some DBEs fail and some succeed. Those who under- stand their scope succeed, and those who think it’s a cash cow and don’t have to work, fail.” The same business owner added that some DBEs suffer from “performance issues.” She said that DBEs who understand simple business practices, cash flow, and show up on time are more successful. • The Native American male owner of an MBE/SBE/DBE-certified construction firm reported that his union signatory allows him to be more successful than another DBEs. Two business owners commented that family relationships are a trackable means of DBE firms’ success. Comments follow: • The African American male owner of a DBE-certified construction firm said, “I think the most successful thing that a DBE can do is be married to someone who does that same kind of work. So, a wife whose husband does this work, or a daughter whose father was in the business and gave her the business [will be successful]. I think that’s the most easily track- able path to success.” He added, “Let me be even more blunt. To be a white female . . . whose husband or father is in this work is the most trackable means of success.” The same business owner added, “At one point in time, my major competitor was married to the head estimator of the biggest bridge builder in the state. . . . And, she was the sister of the owner of the biggest bridge builder in the state . . . So in effect . . . the estimator would call me up and ask me for my prices, and I would be providing them to the husband of my biggest competitor, and also to her brother . . . the owner of the company.” • When asked for insights on what makes a DBE successful and competitive, the African American male owner of a DBE-certified construction firm said, “Being a WBE with a father, husband or brother in the business is a sure-fire winner.” Over the Last 5 Years, Share of Total Revenue from Projects Without Goals Business owners provided revenue information regarding projects without contract goals. In some cases the revenue was fairly low. For example: • The Asian American female owner of a DBE-certified specialty contracting firm reported that less than 1% of her firm’s revenue is from projects without goals. • An African American female owner of a DBE-certified professional services firm stated that around 3 to 5% of the firm’s revenue comes from state DOT projects without DBE goals. • The Native American male owner of a DBE-certified specialty contracting firm reported that about 10% of the firm’s revenue is from DOT projects without goals. • The Hispanic American male owner of a DBE-certified professional services firm reported that only 10% of his revenue is from contracts without goals. • The white female owner of a formerly DBE-certified specialty contracting firm, who “gradu- ated” from the program, commented that since last year they have not been a DBE, how- ever, 40% of their revenue is from projects without goals and that primes would use them regardless because of their work. She added that while not all DOT jobs have goals, they get 70% DOT work.

Qualitative Information from Successful DBEs Regarding Business Success 175 One business owner reported that none of his firm’s revenue is from projects without goals: • When asked what percentage of his firm’s work comes from projects with no DBE contract goals, the African American male owner of a DBE-certified specialty contracting firm reported, “Zero.” Firm’s Success (or Not) at Obtaining Prime Contracts from State DOTs Certified firms described their ability to obtain prime contracts with their state DOT. Some were successful, whereas others were not. A few business owners reported that their state DOT awards prime contracts to larger firms. Comments include: • The Hispanic American male owner of a DBE-certified specialty contracting firm reported that he bids on DOT projects as a prime and has “been very successful” securing the work. • The white female owner of a DBE-certified consulting firm reported that she has secured prime contracts with her state DOT. She added that she was able to secure the prime contracts because other DBEs may not have as good of a reputation as her firm. • The Hispanic American male owner of a DBE-certified professional services firm indicated that his firm does obtain prime contracts from the state DOT. • The white female owner of a formerly DBE-certified specialty contracting firm, who “gradu- ated” from the program, reported not always being able to win prime contracts. She indicated that she has only been able to secure prime contracts since the DOT developed the Highway Safety Improvement Program (HSIP) about 5 years ago. • The Native American male owner of a DBE-certified specialty contracting firm reported that the firm has not obtained any DOT prime contracts. • The African American female owner of an MBE/DBE-certified professional services firm reported that she has not secured prime contracts in 10 years because her state DOT gives work “to large prime contractors.” • The white male representative of a Subcontinent Asian American male-owned MBE/DBE- certified professional services firm reported that they had one prime contract with the state DOT and are hoping for more. He commented that the DOT oftentimes awards work to large firms with more staff than his firm. Firm’s History and Share of Revenue, over the Last 5 Years, for Opportunities with Customers Not Related to Certification Programs Business owners described their work opportunities not related to certification programs or for customers not operating certification programs. For example: • The white female owner of a DBE-certified specialty contracting firm indicated that her firm performs work not related to certification programs regularly. She said, “We do a ton of work for Westinghouse and Atlantic Steel. . . . We do a ton of work for Smith Steel [too].” The same business owner continued, “I would say about 5 years ago we were doing maybe $2 million a year . . . the biggest thing we did was build another facility. . . .” She added, “[About] 80% of our money is made in the trailer shops through Market Basket. . . . We finish a job on a Tuesday, we get paid Thursday. We started doing 2 to $3 million a year with them. Last year they cut back a little, but we still do over $2 million a year with them.” • The Hispanic American male owner of a DBE-certified professional services firm reported that the firm does obtain work from customers not operating certification programs. He said that the revenue from projects without certification programs is about 20% of his revenue. When asked if the firm has always been able to win such contracts, he responded, “Nope.”

176 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program • The Native American male owner of a DBE-certified specialty contracting firm reported that the firm does obtain work from customers not operating certification programs. He said that approximately 10% of his firm’s total revenue comes from this type of work, and that he is in close proximity to perform it. He added that his town does not actively pursue meeting DBE goals even though there are many certified firms ready and willing to do the work. • The white female owner of a formerly DBE-certified specialty contracting firm, who “gradu- ated” from the program, said that they “pursue work from everybody.” She reported that the revenue for projects not requiring DBE goals is low at only 5% of her revenue. • A white female owner of a DBE-certified special services firm reported that she has success- fully performed work for customers that do not operate certification programs. Growth of Annual Revenue over the Past 5 Years Owners of certified firms reported on their revenue growth over the past 5 years. Many reported significant growth. For example: • The Native American male owner of a DBE-certified specialty contracting firm said that the firm started in 2016 and that their 2017 revenue was $300,000. • The African American female owner of an MBE/DBE-certified professional services firm reported that her business growth over the last 5 years has been about $500,000. • An African American male owner of a DBE-certified specialty contracting firm reported that his revenue has grown 10 to 20% over the last 5 years. • A white female owner of a DBE-certified special services firm reported that she has annual growth of at least 15%. • The Hispanic American male owner of a DBE-certified professional services firm remarked, “The first year . . . we did $80,000, and last year we did $900,000.” • The Hispanic American male owner of a DBE-certified professional services firm reported that the firm’s revenue growth was from about $700,000 to over $1 million over the last 5 years. • The Hispanic American male owner of a DBE-certified specialty contracting firm reported, “It has doubled over the past 5 years.” • The white female owner of a DBE-certified construction firm reported that her business revenue growth has been about $4 million. • The white female owner of a formerly DBE-certified specialty contracting firm, who “gradu- ated” from the program, reported that her revenue has increased from almost $10 million in 2013 to $18 million in 2017. • The Asian American female owner of a DBE-certified specialty contracting firm reported 2% annual revenue growth each year. • An African American female representative of an African American male-owned MBE/DBE- certified specialty contracting firm reported, “It stayed about the same.” She said it “wasn’t too good” last year or the year before, and added, “We lost a lot of our trucking customers due to other trucking . . . companies coming in, finding out what our rate was, and then lowering their rate a couple dollars [below] our rate.” She went on to say these companies “don’t pay prevailing wage to their employees for a prevailing wage job . . . and they get away with it.” • An African American female owner of a DBE-certified professional services firm said that in the past 5 years her annual revenue has likely decreased by about 10%. However, she added that she “absolutely” sees things turning around for her firm, commenting, “[In] 3 years . . . I’m hoping to excel past the 7 or 8 million [dollar mark]. We are on an aggressive new business plan.”

Qualitative Information from Successful DBEs Regarding Business Success 177 Range of Peak Annual Revenue Since Business Start-Up Business owners reported on their peak revenue since they started their firms. In most cases the peak is substantially higher than their start-up revenue. For example: • The Hispanic American male owner of a DBE-certified professional services firm stated, “We have been growing [by] 20% annually.” • The white female owner of a DBE-certified consulting firm reported that her highest gross revenue was slightly over $300,000. • A Native American male owner of a DBE-certified specialty contracting firm reported that the firm started in 2016 and that their peak annual revenue has been $300,000. • The African American female owner of an MBE/DBE-certified professional services firm reported that her business’ peak revenue was $630,000. • The Asian American female owner of a DBE-certified specialty contracting firm stated that her firm’s peak revenue was $2.9 million. She noted that the firm’s average annual revenue is $2.6 million. • The white female owner of a DBE-certified construction firm reported that her best year’s revenue was $6 million. • An African American female owner of a DBE-certified professional services firm reported that her firm’s revenue is about 7 to $8 million annually. • An African American male owner of a DBE-certified specialty contracting firm reported that his highest revenue was over $12 million in 2010. • A white female owner of a DBE-certified specialty contracting firm reported that her revenue has increased from $2.2 million at start-up to $13.7 million in 2017. She added that in this time revenue fluctuated based on economic conditions, such as Former President Obama’s 2009 stimulus package where their revenue jumped by $3 million. • An Asian American male owner of a formerly DBE-certified professional services firm, who “graduated” from the program, commented, “The peak [was] during . . . when the U.S. invaded Iraq. We had a big contract with the U.S. Army Corp. of Engineers at one time and that time we peaked at about $30 million. We had a 5-year contract after the U.S. left Iraq.” He later said, “We are [now] about $20 million . . . a year.” As Compared to 2017, Expected Annual Revenue in 3 Years Most business owners were optimistic regarding their future revenue. Many reported expected annual revenues in the multi-million-dollar range. For example: • The Native American male owner of a DBE-certified specialty contracting firm reported that the firm’s revenue in 2018 is expected to grow to $3.5 million. • An African American male owner of a DBE-certified specialty contracting firm reported, “I think it will be . . . 5 to $7 million . . . depending on the economy.” • A white female owner of a DBE-certified special services firm reported, “We should be between $8 million and $10 million. . . .” • The Hispanic American male owner of a DBE-certified professional services firm com- mented that he expects their revenue to double and said they will likely expand to new opportunities. • The white male representative of a Subcontinent Asian American male-owned MBE/DBE- certified professional services firm reported expecting 30% growth. • A Native American female owner of a DBE-certified specialty contracting firm said, “I suspect we will be comparable or lower in 2020. . . . Our biggest customer restructured a contract

178 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program and split it up. . . .” She added, “We were a system-wide contractor for the Midwestern and Western United States, and that will be changing.” • The Asian American female owner of a DBE-certified specialty contracting firm said that she hopes there are DBE goals in place moving forward because contract goals bring most of her revenue. She elaborated, “Without the program, our revenue would probably take a serious dip.” • The white female owner of a formerly DBE-certified specialty contracting firm, who “grad- uated” from the program, commented, “I would assume it would be significantly higher. [My state] just approved [an] act approving funds for highway which will impact growth. If the federal government can get on board there may be an increase of 25% in [my state’s] budget.” • An Asian American male owner of a formerly DBE-certified professional services firm, who “graduated” from the program, optimistically said that his future revenue depends on the economy. • The Hispanic American male owner of a DBE-certified professional services firm said he expects growth over the next 3 years to be “a little higher.” • A white female owner of a DBE-certified specialty contracting firm reported that she hopes for steady growth in 2018 but would be happy if revenue stayed the same as 2017. She added that factors such as competition can affect revenue. • A Subcontinent Asian American male owner of a DBE-certified professional services firm reported that uncertainties in the state led to a weaker year for his firm in terms of revenue. He stated that he expects the next 3 years to be better. • The Hispanic American male owner of a DBE-certified specialty contracting firm commented, “It depends on what work the state is putting out there.” • The white female owner of a DBE-certified consulting firm said, “I see my revenue taper- ing off pretty rapidly in the next 2 years.” She previously reported that she is preparing for retirement. Business Owners’ Plans to “Graduate” from the DBE Program by Exceeding the Size or Personal Net Worth Standards of the Program Many business owners have goals to outgrow and “graduate” from the federal DBE Program. Comments include: • The Native American male owner of a DBE-certified specialty contracting firm reported that the firm’s goal is to exceed the standards. • The Asian American female owner of a DBE-certified specialty contracting firm said that eventually she would like to “graduate” and “stand on her own two feet.” • When asked if she plans to eventually “graduate” from the program, the white female owner of a DBE-certified specialty contracting firm commented, “Isn’t that everyone’s goal?” • An African American male owner of a DBE-certified specialty contracting firm reported that his goal is to exceed the standards of the program. • An African American female owner of a DBE-certified professional services firm reported that exceeding the financial standards of the program is her goal. • The Hispanic American male owner of a DBE-certified professional services firm reported that it is his goal to “graduate” from the program. • An Asian American male owner of a formerly DBE-certified professional services firm, who “graduated” from the program, reported, “We never had a strategy for me to be a DBE for all my life. To me, the more work we [can] get, we [are] blessed. I just received a letter from the DOT saying the last 3 years [we] averaged $20 million so, therefore [we] have graduated

Qualitative Information from Successful DBEs Regarding Business Success 179 from the program. . . . We planned to be the best and keeping our employees happy, and having good in-house training.” • The African American owner of a DBE-certified construction firm commented, “Yeah, of course graduating out of the program [is a goal]. . . . I’m doing well [and it’s] something that’s certainly one of my goals.” The same business owner also said, “I think the gross revenue limits are too low, and I think they penalize DBEs [for it]. The Federal Highway Administration is working hard to get the states to consolidate projects into megaprojects and other large projects. They’re try- ing to do this so they can save their administrative costs, and they don’t have as many people monitoring these projects. And by making the projects bigger and bigger, it means that small DBEs have to get big to compete and . . . perform on these projects. And so, to encourage the industry to make bigger and bigger projects while not raising the size of the DBEs is counterproductive, and it will push DBEs out of the program one way or another. . . . That’s something that needs to be addressed, I think. It’s a poor policy.” Some business owners said they have no plans to “graduate” from the DBE program. Com- ments follow: • A Native American female owner of a DBE-certified specialty contracting firm said that exceed- ing the size or personal net worth standards of the DBE program is not necessarily a goal because it’s hard to operate at those levels. She commented, “It simplifies issues by not being so large. Our goal is to be successful. Our goal is less about growth and more about profitability.” • The white female owner of a DBE-certified consulting firm said, “I was thinking about that going into this interview. . . . I think it’s interesting that for SBA [the threshold] is like $25 million, and for a DBE it’s like $2.4 million. And I originally thought, when I became a DBE, I would outgrow the program [by exceeding] that net worth.” The same business owner continued, “My reasons for being in business and working out of my home had a lot to do with choosing a lifestyle [where] I was able to balance being a parent [and] wife. It was more about personal life balance than . . . making money or grow ing a large company. And so, I think there should be room in the program for woman-owned disadvantaged businesses that are not interested in getting huge and maybe outgrowing the system, but [instead] being able to work within the system over time.” • A white female owner of a DBE-certified special services firm indicated that she will remain within the program. She commented, “I don’t think my clients want me to outgrow it. . . .” • Regarding plans to exceed the size standards of the program, the Hispanic American male owner of a DBE-certified firm stated, “Not really, I haven’t looked [into] that. If it happens it happens, but [it’s] not really . . . a target.” • The Hispanic American male owner of a DBE-certified professional services firm reported that exceeding DBE standards is not in his plans. Business Owners’ Long-Term Plans for Annual Revenue (Growth or No Growth) Most business owners’ long-term plans include business growth and/or expansion. One business owner reported planning for retirement. Comments follow: • An African American male owner of a DBE-certified specialty contracting firm stated, “I would like to grow within the next 5 years to 14 to $15 million and eventually to $20 million gross per year.” • The Native American male owner of a DBE-certified specialty contracting firm reported that the firm’s goal is to earn 50 to $100 million in 5 years. He added that he actually expects to earn at least $30 million in 5 years.

180 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program • The white female owner of a formerly DBE-certified specialty contracting firm, who “gradu- ated” from the program, stated, “We have profit margins we want to maintain versus [only focusing on] revenue. [We would] like to see a 3 to 5% increase in revenue.” • A white female owner of a DBE-certified special services firm reported that her firm has exceeded their long-term goals. • The Asian American female owner of a DBE-certified specialty contracting firm said that she would like to expand into other areas to augment her future revenue. • Regarding her long-term plans for growth, a white female owner of a DBE-certified specialty contracting firm remarked, “We are really pushing it right now.” • An African American male owner of a DBE-certified construction-related firm said that he does not have a written plan, and commented, “[I’m] pretty happy just being able to pay my bills.” • An African American female owner of a DBE-certified professional services firm stated that she does not have a long-term plan based solely on revenue. She indicated that her long-term plan is focused more on preparing her company and herself for retirement. Capital Needed to Achieve Past Growth Most business owners commented that capital is a key factor to future business sustain- ability and growth. For example: • An African American female owner of a DBE-certified professional services firm reported that they have needed capital in the past to grow. She noted that revolving lines of credit have been most helpful to her firm and said that flexibility is appropriate for her firm given how business fluctuates. She added, “I think we will be needing that type of capital, and maybe even larger amounts in the future.” • The Hispanic American male owner of a DBE-certified professional services firm reported that he does need capital to grow and that he has already worked with his banker to secure a larger line of credit. • The Asian American female owner of a DBE-certified specialty contracting firm stated that her firm has taken out loans “at a much higher rate than [they would] like.” She said that this is because her firm cannot yet qualify for traditional bank loans. • A white female owner of a DBE-certified special services firm reported, “[I] have needed capital in the past, and I probably will in the future depending on the number of projects and if they start at the same time. If my projects start gradual, then no I won’t.” • An African American male owner of a DBE-certified specialty contracting firm said that capital is important to the future growth of his firm and his ability to hire more staff. • A Native American female owner of a DBE-certified specialty contracting firm stated, “We have sufficient solid banking resources. We have all we need, and more.” • The Native American male owner of a DBE-certified specialty contracting firm reported that the only way to obtain growth is to reinvest business profits. He indicated that the best access to capital is through Canadian banks rather than U.S. banks because, according to him, they are more willing to look at firms’ long-term projections. • The African American owner of a DBE-certified construction firm indicated that access to capital is important, but commented, “I always foresee roadblocks to getting capital. . . . There’s always problems . . . finding money, absolutely.” A few business owners indicated that their firms no longer have to access capital for growth. Comments follow: • The white female owner of a formerly DBE-certified specialty contracting firm, who “grad- uated” from the program, stated that they have never used capital other than loans for

Qualitative Information from Successful DBEs Regarding Business Success 181 vehicles through Ford Motor Credit Company. She added, “We have [a] $100,000 line of credit but have never used it.” • Regarding her future need for capital to sustain growth, a white female owner of a DBE- certified specialty contracting firm remarked, “No . . . we have a $500,000 line of credit, and I haven’t used it in 6 years.” • The African American female owner of an MBE/DBE-certified professional services firm reported that her firm no longer needs access to capital to grow. • The Hispanic American male owner of a DBE-certified professional services firm reported that he has a line of credit that he does not use. He noted that he is unsure of future capital needs. Firms’ Path to Exceeding the Annual Revenue Limits or Personal Net Worth/Other Factors of the DBE Program Business owners generally reported that they are “nowhere near” exceeding the thresholds of the DBE program. Comments include: • The Native American male owner of a DBE-certified specialty contracting firm reported that the firm is not yet on track to exceed any limits of the program. • The African American female owner of an MBE/DBE-certified professional services firm reported that she is not close to exceeding the personal net worth threshold of the program, and that she “is consistently well under threshold.” • An African American female representative of an African American male-owned MBE/DBE- certified specialty contracting firm reported, “No . . . [we are] nowhere near it.” She added that they have never been close to exceeding revenue limits of the program. • An African American male owner of a DBE-certified specialty contracting firm said that he is not close to exceeding the annual revenue limits of the program. • An African American male owner of a DBE-certified construction firm reported that his firm is not close to exceeding any net worth limits of the program. • The Asian American female owner of a DBE-certified specialty contracting firm stated, “No, [we are] not even close.” Firm’s Plans If Revenue or Personal Net Worth Soon Exceeds Program Limits Most business owners reported that their plans would include “graduation” and continued business growth if they exceeded the limits of the program. For example: • An African American male owner of a DBE-certified construction-related firm said he would continue to work as a contractor. He added, “That’s where I would like to get to, is where I could actually bid as a regular contractor on just everyday run-of-the-mill contracting [projects].” • The white female owner of an SBE/DBE-certified professional services firm reported, “I feel like I am on that path, and I am trying to strategically navigate it. . . . When the time comes, I will make a big deal about [it] and thank everybody who helped along the way.” • The Hispanic American male owner of a DBE-certified professional services firm indicated that his firm would continue to grow if they exceeded growth limits of the program. He said, “That’s my goal.” • The Hispanic American male owner of a DBE-certified professional services firm reported that he would “graduate” or retire. • An African American female representative of an African American male-owned MBE/ DBE-certified specialty contracting firm reported that they would continue to grow and “graduate.”

182 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program • An African American male owner of a DBE-certified specialty contracting firm stated that if he were near exceeding the annual limits of the program, he would “graduate.” He com- mented, “I would be a major player. . . .” • The Native American male owner of a DBE-certified specialty contracting firm reported “I would probably give the money away because I am still not 100% sure we can compete in this market without having the DBE [certification].” He added that they compete against companies with revenue in the billions of dollars. Work Type Diversification and/or Additional NAICS Codes’ Effects on Business Growth Most business owners expressed that additional NAICS codes and work type diversification are factors to business growth. For example: • The Hispanic American male owner of a DBE-certified professional services firm reported that his firm has diversified for growth. He added that they will be requesting additional NAICS codes in the near future. • When asked if his firm added additional NAICS codes, the Hispanic American male owner of a DBE-certified professional services firm stated, “Yes, I’ve done that.” He went on to say, “We added civil design . . . and I’m trying to see if I can get some of the nuclear facilities licensing. It’s something that’s a little hard, but [I’m] looking into that.” He said that these additional NAICS codes will contribute to his firm’s growth. • An African American male owner of a DBE-certified specialty contracting firm reported that his firm has diversified for growth. He said that additional NAICS codes have contributed to his growth, but commented, “I’m not sure how much the prime contractors, agencies [or] federal government look at those [NAICS] codes. . . . I’ve always looked at relationships to help me grow.” • A white female owner of a DBE-certified special services firm reported that she has diver- sified the types of work that her firm performs. She said that additional NAICS codes have supported her firm’s growth. • The Asian American female owner of a DBE-certified specialty contracting firm indicated that diversification of work types has contributed to her firm’s growth. She said that she has more than one NAICS code on her DBE certificate. • The white woman owner of a DBE-certified specialty contracting firm indicated that work type diversification has benefited her firm. She said that she has added NAICS codes for materials. • A Native American female owner of a DBE-certified specialty contracting firm reported that she has “slightly” diversified and added NAICS codes. • A Subcontinent Asian American male owner of a DBE-certified professional services firm indicated that when the demand for consulting services diminished, he protected his busi- ness by diversifying and adding new capabilities. He said that they have added NAICS codes; however, the codes in their industry are already broad. • An African American female owner of a DBE-certified professional services firm said that she requested one new NAICS code about 2 years ago. She explained, “Since then, even that has changed. . . . [It was] a code that allowed us to create [and] develop websites. . . . We saw ourselves really getting in that space on the front end. But . . . since then, the govern- ment has come up with several different codes in that space that [have] become more highly technical that we want to get into. . . .” She said that while the addition of that NAICS code was supposed to contribute to the growth of the firm, “it really didn’t.”

Qualitative Information from Successful DBEs Regarding Business Success 183 Knowledge of Business Assistance Programs and Business Success Most state DOTs offer business assistance programs and support services to DBE-certified firms to assist them in their growth and success. Business owners indicated having general knowledge of assistance programs and the services that the programs provide. Types of Certification and Length of Certification Status Most business owners of DBE-certified firms reported that they did not hold other certi- fications. A few reported holding, or previously holding, SBE, MBE, HUBZone, or SBA 8(a) certifications. For example: • A white female owner of a DBE-certified specialty contracting firm commented that her com- pany’s DBE certification contributed to its success. She said, “At about 1980 is when I think [certification] really started. And [as far as] prime contractors . . . they said, ‘Well, we’re going to hire you anyway, but we would like the credit for you. We got to hire so much, so get your paperwork [done]. . . .’” • An African American female owner of a DBE-certified professional services firm reported that her firm participates in supplier diversity programs, is HUB-certified and was part of the SBE 8(a) program in the past. She added, “There’s quite a few [programs] that we have been involved in since the very beginning that are certifications. . . . A lot of those pro- grams offer some type of technical assistance, depending on the entity and where they’re located.” • The Hispanic American owner of a DBE-certified professional services firm reported that his firm first became a certified DBE more than 7 years ago. He indicated that in addition to the DBE program, his firm is certified with the HUB program. He commented, “But, that is only for the state contracts.” • The Native American male owner of a DBE-certified specialty contracting firm reported that his firm was first DBE-certified in 2016 and has no other similar certifications. • The white female owner of a certified professional services firm reported that her firm is SBE/ DBE-certified. • An African American female representative of an African American male-owned specialty contracting firm reported that the firm is MBE/DBE-certified. • The African American male owner of a DBE-certified construction firm reported that he was DBE-certified in 2007 and that he has held other certifications in similar programs. • A Subcontinent Asian American male owner of a DBE-certified professional services firm reported that the firm was certified in 2002. • An African American male owner of a DBE-certified specialty contracting firm said that he has been DBE-certified since 2002. He added that he “graduated” from the HUBZone and SBA 8(a) programs in 2011. • The Hispanic American male owner of a DBE-certified professional services firm reported that they were certified in 2013. • The white female owner of a formerly DBE-certified specialty contracting firm, who “gradu- ated” from the program, said that the firm was certified in 2001 and ceased certification 1 year ago. • The Asian American female owner of a DBE-certified specialty contracting firm stated that when her firm first started out that they were part of the UDBE program as well as the DBE program. She noted that they are no longer a UDBE because the state did not file the required paperwork to maintain the program.

184 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program • A Native American female owner of a DBE-certified specialty contracting firm said that she has been a certified DBE since 2005. • A white female owner of a DBE-certified special services firm reported that she was first certi- fied in 1998 because a state DOT representative approached her and suggested that she certify. • An African American male owner of a DBE-certified construction-related firm reported that before starting his own company he was a partner for a DBE construction company. He said that he discovered other industries with high demand while working with other contractors. It is through this experience, he said, that he found his “niche.” The same business owner noted the helpfulness of working with a DBE-certified firm before certifying his own as a DBE, and commented, “You don’t just start up and be a DBE.” Business Growth and Development If Federal DBE Program Had Not Existed Most DBE-certified firms reported that DBE certification was a contributing factor to their business success. A few reported that DBE certification did not contribute to their success. Comments follow: • An Asian American male owner of a formerly DBE-certified professional services firm, who “graduated” from the program, reported, “We would not be where we are if there hadn’t been a DBE program.” • When asked what would be different if her firm never certified as a DBE, the white female owner of a DBE-certified professional services firm indicated that her company would be much smaller. She said, “DBE program has assisted my company in growing. I have gone from one to seven people in the past 3 years.” • The Native American male owner of a DBE-certified specialty contracting firm reported that his firm would not be as successful competing for work without the DBE program and goals. • The Hispanic American male owner of a DBE-certified professional services firm stated, “If there was no DBE program, I would have never started my own firm when I decided to leave my company. . . . DBE made it attractive to take a risk. Without that, it would have taken me way too many years to get to where I am now. Instead, I would have worked for another company.” • The white female owner of a formerly DBE-certified specialty contracting firm, who “gradu- ated” from the program, commented, “We would have grown and been successful, but it would have been a long haul. [Certification] allowed us to grow and invest in our future. It sped up the process.” • An African American female representative of an African American male-owned MBE/ DBE-certified specialty contracting firm reported that there would be differences in their success because they “were given . . . opportunities through the DBE program to at least be considered for a subcontract.” • When asked if the DBE program has contributed to her firm’s success, the white female owner of a DBE-certified special services firm stated, “Absolutely, I may not have gone in the direc- tion I am now. I have a good strong business plan. . . . I would [not] have gone statewide like I am. It wouldn’t have been as much fun. I really enjoy working with the state in the field that I am in, it’s real comfortable for me. It makes me wonder what I would be if I didn’t have it. It has given me a shortcut.” • An African American male owner of a DBE-certified construction-related firm reported that his firm “would be nonexistent without the DBE program.” He went on to say, “[We would have] never got in the door. [Primes] wouldn’t have used [us].” • Expressing the importance of the DBE program to her firm, the white female owner of a DBE-certified specialty contracting firm commented that her company’s DBE certification contributed to its success as far back as 1980.

Qualitative Information from Successful DBEs Regarding Business Success 185 • An African American female owner of a DBE-certified professional services firm stated that the founding and growth of her firm would have been different without the DBE program. • When surveyed, the white female owner of a DBE-certified construction firm said that her firm would likely have sold or merged with another business if it weren’t for the DBE program. • The African American owner of a DBE-certified construction firm reported, “Had the pro- gram not existed, I doubt that I would have gone into [business]. I doubt that I would have started my . . . firm at all.” The same business owner added that he wouldn’t have had the capital to start his business without the federal DBE Program. He said, “Who’s to say what would have happened? It’s a fairly capital-intense business to get into. Not so much what I’m doing, but bridge building in general.” • When surveyed, the white female owner of a WBE/DBE-certified construction-related firm said that without the DBE program her firm would likely specialize in a different field. A Few Interviewees and Survey Respondents Suggested That Their Firms Would Have Lower Annual Revenue Limits If Not for the DBE Program • The white female owner of a DBE-certified consulting firm indicated that her firm would not have grown to the same degree without the federal DBE Program. She said she would have lower annual revenue without DBE certification. • The Native American male owner of a DBE-certified specialty contracting firm reported that they would “have lower annual revenue” without the DBE program. He added that they would not be as successful at winning contracts because they compete against nationwide firms that are able to manipulate costs. The same business owner added, “[Large nationwide firms] would rather keep their people employed . . . doing the work at just cost and no profit. . . . We can’t compete unless we are making a profit . . . These guys are so big . . . they will be able to do that.” • When surveyed, the white female owner of a DBE-certified professional services firm said that her firm would have lower annual revenue and lower profit margins if it weren’t for the DBE program. • When surveyed, the white female owner of a WBE/DBE-certified construction-related firm reported that without the DBE program her firm would have lower annual revenue and would not be as competitive. • When surveyed, the female representative of a Hispanic American male-owned MBE/SBE/ DBE-certified construction firm said that without the program, the firm would have lower annual revenue, lower profit margins, and would not be as competitive in their field. • When surveyed, the African American male owner of a DBE-certified construction firm said that his firm would have lower annual revenue and lower profit margins if it weren’t for the DBE program. • When surveyed, the white female owner of a DBE-certified construction firm said that her firm would have lower annual revenue and consequently do more work as a prime and less as a sub. Some Business Owners Indicated That the DBE Program’s Impact on Their Firms’ Success Is Minimal • A Native American female owner of a DBE-certified specialty contracting firm said, “The DBE program has contributed to our success, but [it] hasn’t been the [most] significant factor.” • When asked if his firm’s certification status contributed to its success, the Hispanic American male owner of a DBE-certified professional services firm said, “I kind of doubt [it], because . . .

186 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program like I said, the first jobs I got wasn’t because I was a DBE. It was because I knew how to do [the work].” He went on to say, “Really, I have mixed feelings about it. I don’t think DBE has helped me [get work].” • A Subcontinent Asian American male owner of a DBE-certified professional services firm reported that certification helps his firm, though it alone does not keep his firm in business. He added that if the program did not exist, he would just do more marketing. • Regarding the existence of the DBE program, a white female owner of a DBE-certified spe- cialty contracting firm reported that it would not have changed her growth because much of her work is in the private sector. Importance of Federal DBE Program to Future Business Success Many business owners commented on the importance of the DBE program and its antici- pated positive effects on their future business success. Comments include: • The African American male owner of a DBE-certified construction firm said, “I’m sure [it will benefit us in the future]. It fosters relationships between prime contractors and DBEs. . . . I think these guys left to their own devices will do an old boy network, and they will work with their old friends. We lack the social capital to compete on some levels.” He indicated that minorities in his industry often lack the social capital necessary to build meaningful relationships with prime contractors. • When asked if he anticipates his DBE certification to have a positive impact on his firm in the future, the Native American male owner of a DBE-certified specialty contracting firm remarked, “Absolutely . . . it will give us an advantage to compete in a market dominated by big business.” [I-01] • The Asian American female owner of a DBE-certified specialty contracting firm said that the DBE program will “absolutely” be important to the future of her company. She elaborated by saying that she is worried about the future of her firm’s success because the UDBE program was not renewed in her state last year. She noted that this will allow prime contractors to operate a closed network and award subcontracts to their “friends.” • A white female owner of a DBE-certified special services firm reported that the program will be important to her future business success. She said that she would like to “give back to the DBE program . . . because of [her] success.” • An African American male owner of a DBE-certified construction-related firm reported that the program is valuable to the firm’s future growth. • An African American female owner of a DBE-certified professional services firm reported that she believes the DBE program will continue to be important to her firm in the future. She said, “[It would be nice] if you’re able to . . . get opportunities to network with compa- nies that utilize DBEs, but don’t look at [you] as a disadvantaged company. That’s where I really have the issue, because if I’m a company with 28 years of experience . . . it would be hard for me to feel disadvantaged. . . . I guess we can’t tell them what to call it, but to me it almost sounds like you’re already telling that company [or] organization that this company is disadvantaged.” • Regarding the DBE program’s impact on her firm’s future success, the white female owner of an SBE/DBE-certified professional services firm commented, “I have been open and honest. We have had continued growth and success, but I would be remiss if I wasn’t concerned about when we ‘graduate’ from the program, about what our growth will be without it.” • An Asian American male owner of a formerly DBE-certified professional services firm, who “graduated” from the program, commented, “We learned not to depend on the DOT. . . .”

Qualitative Information from Successful DBEs Regarding Business Success 187 • When asked about future business growth, the Hispanic American male owner of a DBE- certified professional services firm indicated that certification will not be important to his future business success. Business Assistance Programs That Were Useful/Helpful to the Firm Business owners described business assistance programs that they utilized and felt were helpful to their firms’ success. For example: • The white female owner of a formerly DBE-certified specialty contracting firm, who “gradu- ated” from the program, commented that business development seminars have been helpful. She added they have taken advantage of an annual DBE forum where she was a guest speaker. Additionally, she noted the helpfulness of networking and matchmaking events, and an event on learning how to deal with millennials and technology. • The Native American male owner of a DBE-certified specialty contracting firm said that their state DOT holds annual meet-and-greet workshops that are helpful, though he has not been able to attend them regularly. • A Subcontinent Asian American male owner of a DBE-certified professional services firm reported that an internship program offered by his state was helpful. He said that some gradu- ates of the internship secured full-time employment with his firm. • A Native American female owner of a DBE-certified specialty contracting firm stated that she has taken advantage of the OSHA 10, OSHA 30, and CPA audit programs, as well as admin- istrative, CPR, forklift, and DBE reimbursement programs. • The African American owner of a DBE-certified construction firm stated, “Over the years we’ve been through several trainings. I’ve even participated as a presenter. We’ve . . . used [the DOT’s] loan guarantee program.” He added, “We work pretty hard with [the DOT] once a year to put on a big program to bring contractors in, and DBEs and MBEs together, and put on a 2-day conference. [It’s] a strategic partnership.” • An African American male owner of a DBE-certified construction-related firm reported that programs for small businesses are valuable and that he hopes to attend more in the future. • The African American female owner of an MBE/DBE-certified professional services firm reported that in the late 1990s she was approached by a state DOT representative that assisted her with business development. She added that she has taken sessions in QuickBooks, federal regulations, figuring overhead, and “transitioning into retirement.” • The Asian American female owner of a DBE-certified specialty contracting firm stated that she has taken advantage of DBE program courses in financing, bonding, labor law, and human resources. She said, “There is definitely a benefit to the stuff they offer.” • When surveyed, the white female owner of a DBE-certified construction firm indicated that assistance with the bid process can help DBEs be more successful and competitive. She said, “I came into this career knowing only what my father had taught me. I . . . had to learn all this contracting and bid writing by myself.” • When surveyed, the white female owner of a WBE/DBE-certified construction-related firm said, “Being a business person first and understanding construction second is imperative. If you are a construction person, take all the business classes you can and hire a construction accounting person.” • The Hispanic American male owner of a DBE-certified professional services firm indicated having attended “all of them” when asked if he has taken advantage of business assistance programs.

188 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program Types of Business Assistance Programs That Are Not Particularly Useful Many business owners commented on business assistance programs that are no longer helpful or important to their business success. Some suggested ways to improve programs. For example: • A Native American female owner of a DBE-certified specialty contracting firm stated, “The bulk of structured programs are for new DBEs that don’t have a lot of industry experience, which doesn’t make sense. You don’t get into the DBE program to find a business idea. There is a lot of programming to show somebody how bidding procedures work for basic bidding practices. I don’t think that should be the primary focus of the DBE program.” • The African American male owner of a DBE-certified construction firm stated, “Often when the DOTs put on programs for the DBEs, you have a wide range of DBEs that [they’re] mar- keted to, [and] you have some guys who are not even in business [but] thinking about being in business. You have some who just started [and] some who have been around a very long time and are trying to find an answer to a particular question. . . . The bottom line is that when the . . . DOT puts on a program, all of the people there are going to be bored 90% of the time, until they get to the 10% nugget that’s for them.” The same business owner added, “I would much rather acknowledge that small businesses . . . have about 80 [to] 85% similar functionality. We have small business development courses at the universities and in various places. I would much rather see the DOT do a matching scholarship program. So, if a DBE says, ‘I really need help with my IT stuff,’ or ‘I need help with my accounts receivable,’ or ‘I want to be prepared for bonding,’ [if] he sees there’s a course offered like that at the university or someplace like that, he is self-selected. He is getting the tailored help he wants and can turn to the DBE program to help him finance it.” • A white female owner of a DBE-certified specialty contracting firm reported that programs for new firms are no longer useful to her. However, she noted that when she attends a semi- nar or conference she always tries to take new information away with her. • A Subcontinent Asian American male owner of a DBE-certified professional services firm reported that most DOT assistance is for start-up businesses and no longer important to his firm after over 10 years. • The Hispanic American male owner of a DBE-certified professional services firm stated that the SCORE SBA program is not useful because some of the marketing management consul- tants work for huge companies, retire and then want to volunteer even though they “have no idea” what they are doing. • An African American male owner of a DBE-certified specialty contracting firm commented that there have been some workshops and training that the DOT has provided that have been a waste of time. He added, “With me being a graduate of the SBA 8(a) program, a lot of the training is a waste of my time. SBA sent me to Washington, D.C. for training and they had a number of workshops and business management.” • The Asian American female owner of a DBE-certified specialty contracting firm stated that programs offered “not through the DBE” program are not useful to her. Business Programs That Business Owners Would Develop and Deliver Business owners described programs that they think would be useful and would develop and deliver, given the opportunity. In many cases, business owners designed “one-on-one” delivery of their programs. Comments include: • An African American male owner of a DBE-certified construction-related firm reported that he would develop more networking programs that would assist DBEs in obtaining financing. He added that the programs could be delivered via one-on-one consultation.

Qualitative Information from Successful DBEs Regarding Business Success 189 • An African American male owner of a DBE-certified construction firm stated, “I would include working with people on how to get work besides DOT work, so that they work in the entire industry rather than just DOT. I would include cash flow management, so that people understand from the very beginning how cash flow works in things like retainages . . . and payment terms and how to negotiate them. I would talk to them about . . . how to look through state and local projections for what they’re going to build, so that [they] can be more prepared for that work.” Regarding delivery, the same business owner said, “It doesn’t have to be necessarily one-on- one [mentoring], because that’s going to be really expensive. . . . To allow a way for a person to find other means of delivery so they can have more . . . tailored content [is most important]. It doesn’t have to be one-on-one.” • An Asian American male owner of a formerly DBE-certified professional services firm, who “graduated” from the program, stated, “It would include what I call a true mentorship. . . . The DOT would ask me to mentor a DBE, but what the DOT doesn’t understand is if I don’t have a project and I can’t bill the client so I can train somebody, I’m not going to spend my training dollars on somebody else’s employees. If I’m going to train someone, I’d rather hire my own engineers and do my own training.” He added that he would deliver his program by one-on-one mentorship. • When asked how her state DOT’s operation of the federal DBE Program could help more DBEs be more successful, the white female owner of a WBE/DBE-certified construction- related firm said, “Let current successful DBEs mentor both non-certified and newly certified DBEs. We have a wealth of knowledge that is never utilized.” • An African American male owner of a DBE-certified specialty contracting firm said that training to understand plans, specifications and symbols via one-on-one training would be helpful. He added that having a trainer work with business owners is better and more focused than a company going to a workshop with 40 other business owners. He noted that he would “most definitely” attend such a program. The same business owner also said, “I would develop a strong small business construc- tion program [and] change the rules for prime contractors working with DBEs, and provide more projects with a tier-level system to help DBEs grow their businesses. . . .” He explained, “When I talk about changing the requirements for the larger primes, it’s to have guidelines and expectations to give DBEs a chance to grow and learn. . . .” • A Subcontinent Asian American male owner of a DBE-certified professional services firm said that there should be a classification system for professional services firms of different sizes so that smaller firms do not have to compete with larger firms. He added that firms could graduate to different classes as they grow. • The Native American male owner of a DBE-certified specialty contracting firm said that a helpful program would include a training office for contract negotiation, evaluation, bidding process, access to capital, meet and greets as well as a DBE enforcement division to ensure contractors abide by DBE rules and regulations. He added that a mentor-protégé program is also desirable. • The Hispanic American male owner of a DBE-certified specialty contracting firm stated, “I would change the delivery methods for the DOT process. . . . You go from being a sub to . . . a prime, and then they make the [paperwork so intensive] that you question whether it is even worth becoming a prime because of the craziness.” • The white female owner of a DBE-certified construction firm indicated that technical assistance training for employees would be helpful. She said that “hands-on” training for employees in her industry is important since many have never worked in the industry previously.

190 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program Challenges to Future Business Success Business owners discussed factors that challenge future business success. Some reported that lack of access to capital, limited contract opportunities and other factors are barriers. For example: • An African American male owner of a DBE-certified construction-related firm reported that “getting the capital to move forward” is a challenge for his firm. • The Native American male owner of a DBE-certified specialty contracting firm reported that a lack of capital will likely challenge his firm’s future success. • The Hispanic American male owner of a DBE-certified professional services firm indicated that DOT opportunities are “set for larger firms,” which makes it difficult to grow his com- pany. When asked to expand on this, he said, “The way it works is the DOT will come out with an RFP . . . and list the different professionals they need, and they . . . put percentages on those. And if there’s a DBE part, they’ll tell you [that percentage too]. So, you need to find out if any of those listed requirements are something that you can do, and you need to start looking for the companies that can hire you for that percentage of DBE.” The same business owner continued, “That makes it difficult because there [are] no pre- proposal meetings anymore. . . . Nobody knows that you’re interested. So, that’s one problem, the lack of pre-proposal meetings. . . . Being able to see who is applying [and] the larger com- panies that may need a DBE . . . [is] pretty hard to find out.” • The white male representative of a Subcontinent Asian American male-owned MBE/DBE- certified professional services firm reported that securing prime consultant opportunities in his industry in the public sector is an ongoing challenge. • The Asian American female owner of a DBE-certified specialty contracting firm stated that her industry is male-dominated and that without the contract goals the market has the potential to return to being a closed network. The same business owner added that some of their lost revenue has been the result of the state not paying the prime contractors that they work for. She said that she would like the state to guarantee payment to DBEs, regardless of whether prime contractors get paid, 30 days within completion of their services. • An African American female representative of an African American male-owned MBE/DBE- certified specialty contracting firm said that securing “profitable” contracts can challenge the firm’s future success. • The white female owner of an SBE/DBE-certified professional services firm reported, “Com- peting with out-of-state firms coming in for projects who are recruiting employees, getting people to work for them, and then leav[ing] town [is a challenge].” • The white female owner of a DBE-certified supply firm reported that economic conditions and competitors can cause challenges in the future. • The white female owner of a formerly DBE-certified specialty contracting firm, who “gradu- ated” from the program, remarked that safety and legal issues are challenges to her future success. She said, “One lawsuit would put us out of business.” • The white female owner of a DBE-certified specialty contracting firm commented, “Health insurance and cost of diesel fuel really hurts.” Some business owners discussed challenges associated with an unqualified labor force. Comments follow: • A Subcontinent Asian American male owner of a DBE-certified professional services firm reported that the biggest challenge for his firm going forward will be “getting [a]hold of and hanging on to” talented employees. He added that competing with larger firms will also be a challenge.

Qualitative Information from Successful DBEs Regarding Business Success 191 • An African American male owner of a DBE-certified construction firm reported, “Clearly, [it’s] getting more profitable work. The biggest challenge coming up is going to be man- power.” When asked why he thinks this is, he said, “I think that’s because construction will pick up in this part of the state. I think that most of the older tradesman have retired or [plan] to retire. I think that during the recession nobody put on any apprentices and now there’s a great need for journeymen, but there aren’t very many because there weren’t apprentices 6, 7 years ago.” The same business owner went on to say, “I think the ironworkers now have well over 250 [apprentices]. That’s huge. Once, when I was on the ironworker’s apprenticeship com- mittee we didn’t put on one, a single guy, for several years, and now there’s 250. So, that’s going to be an issue.” • The Hispanic American male owner of a DBE-certified professional services firm stated, “Find- ing the right staff and somehow have a certainty of projects in the future [is challenging].” • A Native American female owner of a DBE-certified specialty contracting firm said, “The biggest challenge is the work ethic of the labor force. The younger work force does not have longevity or loyalty, and they have very high expectations from the start.” She added, “You can’t expect to start in the middle, or the top.” • Regarding future challenges, a white female owner of a DBE-certified specialty contracting firm stated, “Finding qualified help [is difficult]. I could run 24 hours per day . . . we have that much work. . . .” The same business owner added, “We hire people from unemployment, and we’re paying these people 17 to $18 per hour, and you know what they say? They’ll work a day, and say, ‘Don’t tell [the government],’ because they make more collecting [unemployment funds]. They get all kinds of [handouts] and they don’t want to work. . . . They only way we can find good people is to steal them.” Knowledge of “Graduated” or No Longer Certified Firms Most DBE-certified firms had limited knowledge of “graduated” or no longer certified firms of the federal DBE Program. For example: • An Asian American male owner of a formerly DBE-certified professional services firm, who “graduated” from the program, reported, “Of all the DBEs that I know, I think only two firms ‘graduated.’” She added, “Another DBE that graduated went back into the program.” • An African American male owner of a DBE-certified construction-related firm commented that he has knowledge of many “graduated” DBEs. He commented, “As soon as they got kicked out of the program or whatever, they retired . . . loaded.” • The African American male owner of a DBE-certified construction firm reported knowledge of two “graduated” firms. He said, “One of them was owned by a white female. And she of course did quite well. The other was a gentleman who came back into the program . . . [and] after he had ‘graduated’ his business took right off.” • The Hispanic American male owner of a DBE-certified specialty contracting firm reported knowledge of two “graduated” firms from the consulting industry. • An African American male owner of a DBE-certified specialty contracting firm reported knowing of one “graduate” of the program. • A white female owner of a DBE-certified specialty contracting firm reported knowledge of multiple firms that have “graduated” from the program. • The white female owner of a formerly DBE-certified specialty contracting firm, who “gradu- ated” from the program, reported that she is aware of a guardrail firm that may have out- grown the certification program.

192 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program • The Asian American female owner of a DBE-certified specialty contracting firm reported that a firm similar to hers that she has worked for has “graduated.” • The white woman owner of a DBE-certified specialty contracting firm reported that she knows of one firm that “graduated” and then returned to the DBE program. • A Subcontinent Asian American male owner of a DBE-certified professional services firm reported having knowledge of “graduated” firms in his state. • The Native American male owner of a DBE-certified specialty contracting firm indicated knowledge of “graduated” firms. • The Hispanic American owner of a DBE-certified professional services firm indicated that he is only aware of DBEs that “are still DBEs.” • An African American female owner of a DBE-certified professional services firm remarked that she has no knowledge of any “graduated” firms. Reasons for Firms’ “Graduation” from the Federal DBE Program Owners of certified firms offered their insights into reasons for certified firms’ “graduation” from the program. For example: • The Native American male owner of a DBE-certified specialty contracting firm commented that firms that “graduate” are able to bid on large construction projects. He said, “I have heard of one engineering firm that . . . went after larger dollar amounts . . . which put them out of the DBE program. . . .” • A Subcontinent Asian American male owner of a DBE-certified professional services firm said that the graduated firms that he knows of benefited from entering the program at an advantageous time. He explained that when there were only two or three DBE professional services firms in his state, when one firm graduated then the other two received a boost in business and revenue, which would eventually allow them to graduate, and the cycle continued. He added that boosts in revenue allowed these firms to secure better talent and resources, which contributed further to their success. • The Asian American female owner of a DBE-certified specialty contracting firm reported that her prior firm that “graduated” did so due to good management, relationship development and other factors. • Regarding reasons for a particular DBE’s “graduation,” the African American male owner of a DBE-certified construction-related firm commented, “They were a fictitious business from the word go. They were a set-up business from a contractor that had money to give them the capital that they needed to grow. And they used the system . . . if you had capital to grow like that, the system would let you [do that]. . . . They became a very large business over several states.” Suggestions for Improving State DOT Operations of the Federal DBE Program Certified business owners offered suggestions for improving the DBE programs in their states. Suggestions include additional training for DBEs, loan programs and set-asides, among others. Comments include: • A Native American female owner of a DBE-certified specialty contracting firm commented “there needs to be more next-level training and less entry-level training.” She added, “They should know how to bid a job before they start a business. They may know how to pay bills but not analyze a financial statement.” The same business owner also suggested marketing assistance oriented to more knowl- edgeable DBE participants, as well as advanced training opportunities.

Qualitative Information from Successful DBEs Regarding Business Success 193 • The Native American male owner of a DBE-certified specialty contracting firm stated that his firm is in need of a DBE loan program. He said, “I look at it as mobilization. When you bid a project, primes have access to mobilization and there is cost to starting a project. There is no option for us as a sub, but we have costs to consume. And as a DBE firm, it is very difficult. I was looking into the DBE program to cover these costs. Luckily, contractors are willing to break off portions of their mobilization to help us out, but if there was a program in place . . . that would be beneficial.” The same business owner also recommended improvements to the DBE certification process. He commented that he is currently trying to become certified in another state. He added that the online application process would be improved if cross-certification between states existed. He also said that mandatory goals on federally funded projects would be an improvement. • An African American female representative of an African American male-owned MBE/ DBE-certified specialty contracting firm said that assistance with reading blueprints would be a helpful addition to the program. She said, “They offer the one-day seminar on how to read blueprints, which lasted [less than] 6 hours. Then they gave you a . . . job to cost out, and really you had to go back home and train yourself with it and call an estimator. . . .” She indicated that the program should have been more personalized with one-on-one training. The same business representative added, “In the DBE program . . . they used to say that DBEs had up to $10,000 a year to use for DBE supportive services. Now [that number is] down. . . . All we could get last year was $1,500.” She continued, “When [we] first started off, they allowed us to use the $10,000 in certain . . . areas . . . they cut most of that out. [For example], we paid for the license plates to put on our [trucks] through the service.” • The white male representative of a Subcontinent Asian American male-owned MBE/DBE- certified professional services firm indicated that set-asides for DBEs would help his firm succeed. • When surveyed, the Hispanic American male owner of a DBE-certified construction firm said, “The DOT [should have] more medium-sized, $20 million and less, projects.” • When surveyed, the white female owner of a WBE/DBE-certified construction-related firm said, “Adjust the DBE [personal net worth] cap for inflation or the cost of living so DBEs can plan for future growth of the business, and for personal issues such as college for children, death of spouse and for retirement.” • A white female owner of a DBE-certified special services firm reported, “I think the applica- tion process should be [revised], and [there should be] site visits. . . . They aren’t following through on that. Is the program not following through on the process because they are too busy and putting their energy into classes that are obsolete? I think this is why some busi- nesses fail.” • The white woman owner of a DBE-certified specialty contracting firm reported that the websites should be more user friendly, especially for business owners who are not computer savvy. • The Native American male owner of an MBE/SBE/DBE-certified construction firm sug- gested that there be sponsored joint venture or mentor-protégé programs for DBEs. • An African American female owner of a DBE-certified professional services firm indicated that she would like to see networking events and programs geared toward non-construction companies. She explained, “I feel like a fish out of water. I don’t know the construction busi- ness, they bid very differently than we do, even the language in some of the RFPs . . . it looks like someone tweaked it from a construction contract. So, I really feel like . . . if you’re going to have communication firms or service organizations bidding on a contract, that contract should be geared toward service firms.”

194 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program • The Hispanic American male owner of a DBE-certified professional services firm indicated that the prequalification requirement that team members be on his payroll at the time of bidding is a barrier. He commented, “I think it would be nice if you’re allowed to come out with your team . . . and just do the work.” • An African American owner of a DBE-certified construction firm suggested that DBE and WBE goals be separated due to abuse of DBE certification. He said, “I have a . . . competitor who walked up to me on a jobsite . . . and looked at me and grinned, and said, ‘I put everything in my wife’s name, and now I’m a DBE too.’” He went on to comment, “If you pick up any of the documents [from] states that show how they meet their goals, I would be surprised if most of them didn’t show [that] 70, 75% of it goes to white female-owned businesses. That’s what this program is, right? It’s a program for white female businesses. And if they get rid of the program, those businesses will go away and [the ownership] will go back to [the] husbands, or fathers or whoever.” • When asked for any final comments or insights, the Asian American female owner of a DBE- certified specialty contracting firm reported that the DBE program is often misunderstood by prime contractors with “old school” mentalities. A few business owners commented on the need for large state DOT contracts to be unbundled so that DBEs can compete as prime contractors. Comments follow: • A white female owner of a DBE-certified specialty contracting firm suggested that contracts be unbundled. She said, “I would break up contracts into smaller sections so DBEs can bid on them . . . themselves.” • A white female owner of a DBE-certified specialty contracting firm recommended that DOTs stop awarding “mega” contracts where DBEs cannot compete. • The Hispanic American male owner of a DBE-certified professional services firm reported that unbundling contracts is necessary for his firm to grow. • The Hispanic American male owner of a DBE-certified specialty contracting firm recom- mended that the DOT unbundle projects. Other Comments, Insights, or Recommendations Business owners were asked for any additional comments, insights, or recommendations. Some noted the importance of work types for DBEs and finding their “niche.” Others men- tioned that the DBE program in their states are proactive, supportive, and helpful. Comments include: • The white female owner of a formerly DBE-certified specialty contracting firm, who “gradu- ated” from the program, commented that DBEs fail when they are pushed into scopes of work that they know nothing about. She said, “If you have a company who does concrete flatwork or trucking, why would you encourage them to expand into an unrelated scope. . . . They are more likely to fail.” She commented that prime contractors and civil rights offices in her state have been pushing DBEs to work in scopes in which they are not experienced or qualified. • The white female owner of a DBE-certified consulting firm remarked that it’s important to find your niche, be competitive and follow through on commitments. She added, “A lot of it has to do with the relationships I’ve built over time with not only my client, but with the owner [via] strong communication.” The same business owner added, “Probably the most difficult thing for people to do in the business sector is actually . . . constructive criticism. I think it would help for the [state DOT]

Qualitative Information from Successful DBEs Regarding Business Success 195 to . . . call someone in and say, ‘We want you to be successful, but here’s how you let us down,’ or, ‘Here’s where we think you could improve your delivery. . . .’” • A Subcontinent Asian American male owner of a DBE-certified professional services firm said that the DBE program in his state is both proactive and supportive. • An African American male owner of a DBE-certified construction-related firm noted the help- fulness of staff within the DBE program, particularly in informing him about upcoming DBE program events. He also said that he has “nothing but good things to say about the DBE pro- gram,” and commented, “Everything I’ve ever needed [was] there for me . . . other than capital.” • When asked for any other insights, the African American male owner of a DBE-certified con- struction firm commented, “If I’ve learned anything over the years with this, it’s that [DBEs] should get involved with the DOTs and whoever they’re working with. It is amazing to me how many good things happen by just showing up. DBE business owners . . . should involve them- selves with the activities. I don’t mean just DBE activities. They should volunteer to be . . . part of this decision making.” He added, “The more people are involved, the better. We need to present the DOTs with a visible constituency.” • The African American male owner of a DBE-certified specialty contracting firm suggested bringing in DBEs to start a committee exclusively of DBEs so that they can share thoughts and ideas that will help certified businesses be more successful. • When surveyed, the white female owner of a DBE-certified professional services firm sug- gested that her state DOT “cut down” on the paperwork required for DBE certification. • The Hispanic American male owner of a DBE-certified professional services firm stated that DOTs should have their rates and paperwork requirements audited and reviewed. • An African American female owner of a DBE-certified professional services firm highlighted the need for increased education, outreach, and support for firms in the DBE program. She explained, “One of the things that I would suggest [the DOT and others do is] identify people who are in the program and then . . . send [them] information. I think they really could do a better job of talking about the overall program, a refresher [of] what has changed in the program. . . .” The same business owner continued, “I don’t know of any other people [in the program]. Why is that? I never hear of anybody else. Are there other companies? Are there other com- panies that do what I do? Yeah, you could probably look at a list somewhere, but . . . I could use a refresher course. Where is the DBE program today? What are the benefits of it? Am I using it properly or can I use it better? And I can tell you, I’ve never had anybody call me up and say, ‘I’m a rep,’ or, ‘Do you have any questions?’” • The Asian American female owner of a DBE-certified specialty contracting firm reported that the foundation of her state is “small business,” and that the DBE program is important for all small businesses to participate in bids within the state. • The white female owner of a DBE-certified construction firm commented that the DBE program should continue to assist and focus on small firms. • An Asian American male owner of a formerly DBE-certified professional services firm, who “graduated” from the program, commented, “I think once you start getting stuff in volume and start getting credibility, even the banks start to change their tunes. . . . I remember after being in business 5 or 6 years . . . there were certain times where we didn’t need a loan from the bank. And all of a sudden, I had banks giving me 4 to $5 million in working capital and I told them, ‘I don’t need it. If I need it, I’ll come to you.’” A few interviewees had comments related to DBE contract goals. Comments follow: • The Asian American female owner of a DBE-certified traffic control firm mentioned that it is important for the DBE program to maintain their goals and provide better enforcement of those goals.

196 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program • When asked what state DOTs or other groups can do to help DBEs be more successful and competitive, the Hispanic American male owner of a DBE-certified construction firm said, “Figure out how to get more available DBEs, or lower the goals.” • An African American female representative of an African American male-owned MBE/DBE- certified specialty contracting firm said companies that “blatantly discriminate against African American companies” should be “barred,” and noted that the firm has documented evidence of such discrimination. The same business representative also suggested that there be better monitoring and enforcement of programs that include contract goals. She said, “Department of Transpor- tation knows that there’s a disparity in the way subcontracts are given out, [especially] when it’s Asians versus Black Americans.”

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Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program Get This Book
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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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