Rochester Procurement Expansion Program

Growing Local Opportunity Through Inclusive Procurement

The Opportunity Gap in Greater Rochester

Rochester is a special place with a rich history, but many of its residents continue to face limited access to the tools of prosperity. Generations of barriers — ranging from housing instability to limited access to capital — have constrained the ability of local entrepreneurs to thrive, especially those from historically underserved communities.

In 2022, the City of Rochester Needs Assessment identified a powerful strategy to help shift this reality: business ownership. When local residents own businesses, they create jobs, circulate money locally, and build economic self-sufficiency for themselves and their neighborhoods.

The Case for Investing in Local Business Participation

If we could address persisting barriers that have constrained certain entrepreneurs so that the number of high-potential businesses from underrepresented communities reflected the share of population, Rochester would gain 2,035 additional businesses, nearly 45,000 jobs, and close to $2 billion in new wages. That’s not just a noble win — it’s a community-wide economic boost.

Today, only 9.8% of Rochester’s employer-based businesses are owned by people from historically underrepresented backgrounds, and they account for just 2.7% of total sales and 3.5% of jobs. These businesses tend to have lower average revenues and pay lower average salaries than the regional norm due to the barrier outlined above.

(Rochester’s economy includes over 19,000 employer-based businesses generating $107.6 billion in sales and supporting 437,500 jobs. See sources below.)

What is RPEP?

The Rochester Procurement Expansion Program (RPEP), founded by Rochester Area Community Foundation in 2023, was created to expand access to business opportunities by transforming how local institutions approach purchasing. RPEP fosters intentional, locally engaged procurement practices that create more room at the table for qualified small and underutilized businesses in the region.

By connecting local suppliers with large regional employers — like hospitals, universities, and corporations — RPEP is opening new channels for business growth. Eight anchor partners have already committed to a shared vision: to strengthen local supplier networks, unlock new business relationships, and support high-potential vendors in scaling up to meet regional needs.

In its first year alone, the anchor organizations have collectively doubled their spend* with local suppliers as well as doubled the number of local, small businesses they purchased from.

*In comparison to the last two year average spend

Why This Matters Now

This is more than a feel-good initiative — it’s a practical investment in Rochester’s future. Procurement represents one of the most powerful tools our institutions have to reinvest in the community. By removing barriers to opportunity, expanding participation in regional supply chains, and supporting capacity-building for local vendors, RPEP is laying the groundwork for a more connected, resilient, and vibrant regional economy.

Unlike past efforts that emphasized compliance or one-off programs, RPEP is built on a long-term vision:

• A collaborative platform to share resources and supply chain needs.
• A commitment to accessible procurement that reflects the talent and potential of our entire region.
• Intentional, strategic investment in supplier development and capacity building.

A Stronger and More Vibrant Greater Rochester, For All

If you are a small, locally owned business—particularly one navigating access challenges—we invite you to connect. If you represent an institution ready to build stronger community ties through purchasing, we welcome your partnership.

Because when more of us participate in Rochester’s growth, we all rise together.

Sources

• Perry, Andre M., and Carl Romer. “To Expand the Economy, Invest in Black Businesses.” Brookings, 2020. https://www.brookings.edu/articles/to-expand-the-economy-invest-in-black-businesses/
• “Living Cities Closing the Gaps Network Homeownership and Business Starts and Growth City of Rochester Needs Assessment.” Living Cities, 2022. https://livingcities.org/wp-content/uploads/2024/04/CTG-Rochester-Needs-Assessment-10-10-2022.pdf