Executive summary: Response from the Request for Information on Black-owned or -led businesses
This summary is based on the feedback and comments received from Black-owned or -led businesses about their experience with federal procurement.
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Background
Public Services and Procurement Canada (PSPC) is creating initiatives to increase the participation of Black-owned or -led businesses within federal government procurement. To inform the development of these initiatives, PSPC issued a Request for Information (RFI) to gather information on Black-owned or -led businesses and their experiences with federal procurement. This summary provides details on the key findings of the questionnaire. It emphasizes that, although Black-owned or -led businesses have the market capacity to supply goods or services, they continue to face barriers to participation in federal procurement.
For more information, read the description of the RFI.
Who participated
A total of 142 responses were collected from the RFI. Of the 142 respondents, 135 identified as either a Black-owned or a Black-led business. The following analysis is based on the 135 respondents.
Key findings
The following are the RFI’s key findings:
- Many respondents reported identifying with another diversity characteristic, in addition to the Black community
- Most respondents have never sold goods or services to the Government of Canada, mainly because:
- they were unaware of federal procurement opportunities relevant to their business (29%)
- their business lacks the capacity to participate in federal procurement (20%)
- The majority of respondents identified as a small business with fewer than 99 employees, most of which were incorporated
- Respondents’ businesses provide a wide range of goods and services, with a high concentration of them in the services sector, notably in the following sub-sectors:
- consulting, special studies and analysis
- professional, administrative and management support
- IT equipment, software, supplies and support (including central processing units, storage devices, systems, etc.)
- educational services
- The respondents faced many challenges in operating their businesses. The most frequent barriers cited were:
- lack of financing
- lack of networking opportunities
- lack of capacity to prepare bids
- Respondents’ preferred methods for receiving information about procurement opportunities included automated email notifications and information provided during learning events and through their business networks
- Only a quarter of the respondents are currently third-party certified (for example, by an industry association, certification body or other organization) as a business owned or led by an underrepresented group or individual (for example, Black persons, Indigenous persons, members of other visible minorities, women, persons with disabilities, veterans, LGBTQ2+, etc.), while most are willing to self-identify as part of a bid submission
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