California chambers support SB 781 to boost small business procurement opportunities

California's Senate Business, Professions and Economic Development Committee has taken a significant step towards bolstering the state's small business sector by advancing Senate Bill 781. This legislation aims to enhance the participation of local small businesses in procurement and contracting processes, a move that supporters argue is crucial for economic growth and job creation in California.

During the meeting on April 7, 2025, Anthony Butler Torres, policy coordinator for the California Hispanic Chamber of Commerce, emphasized the vital role small businesses play in the state's economy. He noted that California's 4.1 million small businesses account for over 98% of all businesses and employ more than 7 million people. Torres highlighted that these enterprises are responsible for creating two-thirds of the net new jobs in the state, underscoring their importance in driving economic mobility and innovation.

SB 781 seeks to build on previous legislation, such as AB 2019, which established a 25% small business goal for state agencies. The bill aims to ensure that small businesses are not excluded from contracting opportunities, thereby fostering a healthier business environment that benefits both the community and government entities.

The committee meeting featured strong support from various stakeholders, including representatives from the California African American Chamber of Commerce and the Northern California Small Business Development Center. Many speakers urged committee members to vote in favor of the bill, citing its potential to create economic opportunities and support local enterprises.

With no opposition voiced during the meeting, the committee unanimously passed SB 781, sending it to the Senate Local Government Committee for further consideration. This legislative action reflects a growing recognition of the need to empower small businesses as a cornerstone of California's economic landscape. As the bill progresses, its implications for local economies and job markets will be closely monitored by community leaders and business advocates alike.