Sandy-Michael McDonald, Director, Broward County Economic Development

Sandy-Michael McDonald, Director of Broward County Economic Development, talked to Invest: about the various initiatives that the agency has implemented to advance an inclusive economic development that benefits local as well as minority- and women-owned businesses. He also highlighted the challenges that the county faces in keeping part of its expenditures concentrated in local businesses.

What have been the most significant milestones or achievements for Broward County Economic Development in the past year?

Our leading economic development organization in our public-private partnership is the Greater Fort Lauderdale Alliance. That organization supports our economic efforts in target industries by assisting us with retaining, expanding, and recruiting new business to Broward County.

There has been a lot of excitement on our side around the number of startup businesses and supporting organizations. The Alliance of Entrepreneurial Resource Organizations (AERO) includes 18 organizations, such as Hollywood, JM Family, Urban League, the Alan B. Levan NSU Broward Center of Innovation, and others, that support entrepreneurs, startups, and small businesses. We have a variety of entrepreneur and startup programs and activities.

How is Broward County Economic Development working to support the growth of small businesses in the area?

The Small Business Administration categorizes small businesses as those that employ between one and 500 employees. Nevertheless, 89% of the 85,000 registered businesses in the county employ 20 employees or less, so Broward County is a small-business community. Since over two-thirds of all businesses in Broward are small, and since we buy so much as a county, the county has always tried to average at least 25% of what we buy from local small businesses. I focused on changing the county ordinance in 2018 so that the county buys at least 25% of everything it needs from small businesses in Broward, no longer attempting to average.

We have reached that goal, and I can inform the county that 32% of what they buy, from all county agencies, airport, transportation, facilities, construction, finance, training, counseling, and other services and goods, we buy from locally certified small businesses. That is the economics that helps the county’s growth. It is an IMPLAN model, direct, indirect, and induced. If the county does construction, at least 25% of it must be done with small businesses. The small businesses and the contractor get that money and buy some of their supplies and materials from other businesses in Broward. Those employees eventually get paid, go home, pay rent and mortgages, go to the grocery store, and spend more money in other businesses within Broward. For instance, at one review point, $180 million was spent to expand the convention center, and over $70 million was spent with local small businesses. What those businesses and employees did with that money was to spend it in other businesses, so that $70 million looks more like $84 million of GDP. 

What are the most important sectors driving the economy in Broward County?

We have a port, an airport, a convention and visitors bureau. Those are the true economic engines driving the dollars for the economy. Nevertheless, we recognized through the Small Business Program that small businesses are an economic engine as well. We have been excited about 2023 and 2024 because the economics suggested upward mobility.

Nevertheless, we still have challenges with affordability, and our housing market is one of the worst. We need to attract more high-wage jobs and ensure that folks can be entrepreneurs and start more businesses. We also need to build more inventory of affordable housing. We need to create more trades and opportunities to bring the middle class back. The more businesses we have, the more opportunities we are creating opportunities for folks to be employed within the county, and the more inventory we create of affordable housing, allows us to house those who are working in Broward. 

Our economy is solid thanks to the county commissioners and administration, and our commitment to doing our part to add to economic growth. A great way for Broward to do that is the ordinance that ensures that at least 25% of the county’s spending stays in Broward County. For a yearly purchasing of $1 billion of goods, materials, and services, that means $250 million, using county programs and initiatives to grow businesses and to work with entrepreneurs to establish businesses and with organizations like AERO to support those who support those in need.

What are the most important challenges that Broward County faces to continue developing economically?

The state and our economy to scale for South Florida are not aligned in some areas. The state decided it does not want us to set living wages anymore. Our living wage in South Florida is a bit over $19 per hour and $21 if it is with insurance. If we went with the state’s rule, our projects could no longer require contractors to pay a living wage on certain contracts, but just minimum wage. One cannot live in South Florida with $11 or $13 an hour, so we must address that as the new ordinance on living wages kicks in 2025-2026.

Additionally, we are a donor county, which means we give more money to the state in tax capture than we get back. Therefore, we need to ensure that the state understands that what we do here also adds dollars to the coffers at the state level. For instance, the taxes that are paid on a $13 per hour wage are lower than on a $19 per hour wage, so the new ordinance would also mean reductions in terms of the taxes that are paid to the state. 

What initiatives does Broward County Economic Development have in place to include minority- and women-owned businesses in economic development?

 Broward still administers the Federal Disadvantage Business Enterprise Program (DBE) and the Airport Concessions Disadvantage Business Enterprise Program. (ACDBE) Every time we spend funds from the Department of Transportation (DOT), we are required to use their program which is primarily for Women and Minority-Owned Businesses. This still affords our Minority and Women Owned Businesses to have specific opportunities in projects with Aviation, Transportation, and some Port Activity. 

We run a race- and gender-neutral program for all businesses that meet the eligibility requirements, but we also administer an exclusively women and minority program. We also do what we can in our processes, procedures, and programming to demonstrate an inclusive equity where everyone gets what they need. We are serious about giving fair and equitable opportunities to all and about advancing individuals based on what they bring to the table instead of holding them back because of who they are.

What are the top priorities of Broward County Economic Development in the next two to three years?

Our top priority is to ensure a continuation of programming that supports small businesses and growth in the 31 municipalities of Broward. While we might not be able to leverage state funding, we need to ensure that there is an economic business model, and that the county continues to use small businesses and has partners like AERO committed to helping entrepreneurs and startups get going.

We also need to ensure that we are advancing opportunities and that there is a structured process or plan for continued growth. For instance, our transit department is one year into its 15-year project to spend $4.3 billion, which entails expanding 200 miles of road, rapid transit, and rail. That entails multiple opportunities for everyone. I will also continue to tell the penny surtax for transportation improvement story. We have 24 more years to go on the transit project to spend at least $355 million per year to improve transportation and services, infrastructure throughout the county, and the future of rail.

We see a bright future with substantive activity in the next two to three years, so our job is to ensure that the 31 cities, 14 chambers, EDO partners, AERO members, 2 million residents, and over 85,000 registered businesses are aware of the programs, projects, and initiatives that exist. That entails new chances for businesses to participate and for residents to benefit from more access and more ease of transportation and movement, and better jobs. We will launch more initiatives and have more folks finding better jobs because of real projects and activities.