Local small businesses have received government contracts totaling over $55 million in fiscal year 2024, with this number expected to grow significantly in the wake of back-to-back hurricanes.

At an October 24 workshop, Pinellas County Commissioners received an update on the success of the Small Business Enterprise (SBE) Program before discussing the monumental storm recovery process. The total value of awards increased by 45% from 2023 to 2024 and by 96% since fiscal year 2022.

“That’s also key to our recovery,” said Administrator Barry Burton, emphasizing the importance of the program. “Considering most of our businesses are small businesses.”

Small, minority, women, and veteran-owned businesses participating in the initiative receive preference on contract awards between $5,000 and $100,000, provided proposals meet the county’s criteria. Corey McMaster, director of small businesses and supplier diversity, highlighted the program’s role as a resource for government stakeholders and community partners.

Providing federal regulatory education is a critical aspect of the program. McMaster noted that his department recently began collaborating with St. Petersburg-Clearwater International Airport officials to identify SBE contractors who meet new U.S. Department of Transportation requirements. The airport is undergoing a $110 million expansion that will add four new gates, jet bridges, and a centralized security checkpoint.

McMaster emphasized the importance of ensuring local small businesses have access to the “great opportunities” around the region, which include the new $1.37 billion Tampa Bay Rays ballpark in St. Petersburg, a new Moffitt Cancer Center campus in Pasco County, and a long-awaited, on-campus football stadium at the University of South Florida. “Providing access to these projects will help provide financial stability and encourage participation in county initiatives for years to come,” he said.

Program registrations increased by 10% last year, a significant number. Eliminating contract award roadblocks remains a priority, and the county’s utilization rate is 29%, far exceeding the U.S. Small Business Administration’s 13% benchmark. This underscores the impact of the local initiative, which bolsters the economy by fostering job creation and supporting often marginalized entrepreneurs.

The $55.6 million in contracts awarded represents tremendous growth over time, with payments to SBEs increasing by 116% since fiscal year 2022. The public works department awarded 14% of its budget to SBEs, with notable contributions from the real estate (13%), parks and conservation (12%), animal services (10%), and community development (8%) departments.

“Given the recent impacts of Hurricanes Helene and Milton, this support will be even more critical as local small businesses work to recover,” McMaster said. He anticipates these businesses will see opportunities with the county as they pivot back to solvency and strength.

McMaster plans to continue working with departmental leadership to include SBE-specific opportunities in all county projects, noting that de-bundling contracts can aid those efforts. He also highlighted the importance of ensuring insurance mandates are proportionate to potential awards, as insurance requirements can present hurdles for small business owners.

McMaster stressed the need for small business owners to learn particular skills to work with governments, which typically vary from the private sector. The county’s Small Business Development Center provides critical wraparound services to help them understand these unfamiliar processes.

His department has held 94 training sessions over the past year. “They are doing a lot of stuff you don’t see,” Burton told commissioners.

(Image credit: Historic Gas Plant District rendering)