Minority Vendors Divided on Mergers

by Alana Roberts

LAS VEGAS -- Minority small business people attending the MBE (minority business enterprise) Showcase 2004 in Las Vegas on Wednesday had mixed opinions about how the proposed mergers of major gaming companies will affect their chances of doing business with those companies.

"It's going to make it more difficult and challenging," Mary DiMichele, president of BEW Interactive Inc., said. BEW Interactive Inc. is a multimedia technical writing and Web design company that offers other companies an array of services such as technical training. DiMichele is in the process of moving her business from Michigan to Las Vegas, and is also a member of the Michigan Minority Business Development Council.

Her comments were made in the wake of reports that Harrah's Entertainment Inc. was negotiating Wednesday to buy Caesars Entertainment Inc., and amid the hullabaloo over MGM MIRAGE's $7.9 billion buyout of Mandalay Resort Group. Meanwhile, the dust is just beginning to settle on the $1.3 billion Boyd Gaming Corp. merger with Coast Casinos.

DiMichele said when companies merge, small suppliers often lose touch with purchasing representatives and get lost in the shuffle.

"They usually merge (one of) their largest departments: purchasing. If you don't have a relationship with a purchasing agent, you may not get the right point of contact. One of the things companies are talking about is streamlining their supplier base. If your doing a small amount of business, it costs to keep you on their database," DiMichele said.

But Dianne Fontes, president of the Nevada Minority Business Council, said she is optimistic about the proposed mergers.

"It's going to give all of us a big edge. Most of us have relationships with the companies that are merging. I see them benchmarking their goals (for diversity) and making them much higher. They're bigger, they have more resources and they provide more opportunities," Fontes said.

Ronnie Tice, owner of Vizul EFX, a Las Vegas promotional products sole proprietorship, agreed that since she already has a relationship with MGM MIRAGE, the proposed merger with Mandalay Resort Group would probably mean more opportunities for her.

"I think it's a good thing because they're going to branch out. It's going to open up more opportunities," Tice said.

The MBE Showcase featured 35 exhibitors, including minority or women-owned small businesses and other organizations such as the National Association for the Advancement of Colored People and the U.S. Small Business Administration. This is the third consecutive year for the showcase.

The hosting organizations for the event were the Nevada Minority Business Council, the Asian and Latin chambers of commerce, the NAACP, the National Association of Women Business Owners, the Nevada Small Business Development Center and the U.S. Small Business Administration.

Purchasing agents for several major corporations attended the showcase, including McCarran International Airport, MGM MIRAGE, Mandalay Resort Group, The Venetian, Southwest Gas Corp., Nevada Power Co., BankWest of Nevada and Enterprise Rent-A-Car.

Fontes said minority suppliers should be certified as women or minority-owned businesses in order to meet the needs of the large corporations. She said the corporations are seeking to work with minority and women-owned businesses but want to be assured they are who they say they are.

"This is a way for them to accomplish their goals in one shot," Fontes said.

Copyright © Las Vegas Sun. Inc. Republished with permission.