Description and History

Matchmaking services are essential in connecting anchor institutions—such as universities, hospitals, and government entities—with small, local, and democratic businesses. These services bridge the gap between large institutional buyers and smaller suppliers by facilitating relationships, enhancing communication, and ensuring local businesses are both aware of and prepared to pursue procurement opportunities. Matchmaking strategies include online platforms, meet-and-greet events, local supplier fairs, and more.

Historically, the procurement landscape has heavily favored larger corporations with the resources, expertise, and established relationships to navigate complex processes. However, as the focus on community wealth building (CWB) and local economic development has grown, matchmaking services have emerged as a practical solution to broaden access to procurement opportunities. These services actively connect institutional buyers with small businesses, fostering a more plural and resilient economy by ensuring that local enterprises can grow through stable, high-value contracts.

These services often rely on partnerships between local governments, economic development organizations, and chambers of commerce that recognize the potential of local suppliers to meet institutional needs. They also acknowledge the value of these connections in strengthening the overall local economy.

Matchmaking Services and the Community Wealth Building Wedge

Matchmaking services ensure that the economic power of anchor institutions is harnessed to support local business ecosystems. They help level the playing field by giving smaller, locally owned businesses access to contracts and the bidding process—an area that small suppliers often lack awareness of or struggle to navigate. Matchmaking services not only link small businesses to procurement opportunities but also help them understand and prepare for the bidding process, ensuring they are equipped to meet institutional requirements.

These services typically involve identifying potential suppliers, screening them for compatibility, and connecting them to anchor institutions with aligned needs or values. By diversifying supply chains and including smaller businesses, matchmaking services help foster local economic growth. Many of these programs also provide technical assistance, compliance guidance, and resources to ensure local suppliers are “bid-ready.” This ensures that these efforts not only create opportunities but also position small businesses for long-term success.

Examples

South Florida Anchor Alliance (SFAA):
The South Florida Anchor Alliance, an initiative of the Health Foundation of South Florida, is a collaborative of 20 regional institutions, including hospitals, education enterprises, and municipalities. Established in 2019, SFAA aims to create a more inclusive South Florida economy by focusing on equitable procurement and workforce development. This effort supports the Health Foundation’s strategy to address social and economic disparities that affect community health and well-being.

Los Angeles Small Business Academy:
The Los Angeles Small Business Academy works with small, local, minority-owned businesses to prepare them for procurement opportunities with public sector institutions. The academy provides technical assistance, matchmaking events, and introductions to institutional decision-makers, promoting equitable access to contracts and growth for local businesses.

Challenges and Limitations

Aligning Demand with Local Capacities: Matching anchor institutions’ needs with the capacities of smaller, local businesses can be challenging. Large buyers often require high volumes, fast delivery, and stringent compliance, which can strain smaller suppliers.

Access and Communication: One of the primary issues matchmaking services address is the lack of awareness among local suppliers about procurement opportunities. Institutions may also struggle to find smaller, compatible suppliers. Effective communication and outreach are critical to bridging this gap and ensuring broader participation.

Capacity Gaps for Small Suppliers: While matchmaking services help identify and connect businesses, small suppliers may lack the financial, technological, or logistical capacity to meet institutional requirements. For instance, payment cycles—often quarterly or yearly—can create cash flow issues for small businesses accustomed to more frequent payments. This highlights the need for financial resources or flexible payment arrangements as part of capacity-building support.

Digital Divide and Accessibility: The reliance on digital platforms for procurement and matchmaking can exclude small businesses without adequate technological access or expertise. This digital divide limits the ability of some suppliers to engage effectively with matchmaking services.

Ensuring Long-Term Partnerships: Short-term contracts or pilot projects do not always provide the stability needed for local businesses to grow. Long-term partnerships between anchor institutions and local suppliers are essential for sustainable impact.

Taking it Forward

Expand Outreach and Accessibility: Institutions and matchmaking organizations must prioritize effective communication and outreach to ensure local suppliers are aware of and can access opportunities. This includes targeted efforts to engage underserved communities and addressing the digital divide by offering training and technical support.

Provide Comprehensive Support Programs: Matchmaking services should integrate capacity-building programs that include technical assistance, compliance training, financial planning, and logistical support. These programs will better prepare local suppliers to meet the needs of anchor institutions and succeed in competitive procurement processes.

Foster Collaborative Partnerships: For matchmaking services to fully deliver and be transformative, they must involve partnerships among anchor institutions, local suppliers, community groups, enterprise developers, and funders/financers (e.g., Community Development Financial Institutions—CDFIs). These collaborations ensure that matchmaking services are holistic and address a wide range of supplier needs, creating a more resilient and sustainable local supply chain.

Streamline Procurement Processes: Anchor institutions can simplify bidding requirements and break large contracts into smaller, more manageable projects that better align with the capacities of smaller suppliers. Flexible procurement standards will lower barriers for local businesses and increase their chances of successfully securing contracts.

Ensure Accountability and Transparency: Anchor institutions should implement transparent tracking and evaluation mechanisms to measure the impact of matchmaking services. Publicly sharing data on participation, contract value, and economic outcomes will build trust and encourage ongoing engagement from both suppliers and buyers.

Resources

• CASE (Chicago Anchors for a Strong Economy): A successful model of a matchmaking organization connecting local businesses with anchor institutions.

• Local Initiatives Support Corporation (LISC): Provides funding and support resources for small businesses aiming to grow through local procurement.