small and mid sized businesses Archives

Collaboration, one of San Diego’s greatest strengths, is at the core of the EDC’s Anchor Institution Collaborative: A partnership between the region’s largest buyers committed to using their combined purchasing power to strengthen our local economy.

Launched in 2020, the Anchor Institution Collaborative brings together San Diego universities, hospitals, utilities, and large companies around a shared goal of supporting small, local, and diverse businesses to drive inclusive economic growth.

Working with and through our largest buyers

EDC’s role has always been to work with and through large employers and entities that are physically bound to our region to create change that reaches across the business ecosystem. Local anchors—including CSU San Marcos, the San Diego International Airport, Dexcom, and others—have a powerful influence on how money and opportunity flow through the region.

These anchors drive real impact in San Diego, by buying locally and contracting with small and diverse suppliers. In 2024 alone, seven regional anchors we surveyed spent a combined $763 million with local diverse suppliers and $245 million with regional small businesses, representing 16 percent and five percent respectively of their total combined spend.

Looking ahead to 2026, the collaborative will continue to help anchor institutions identify strategic opportunities to expand local impact, through shared learning, goal-setting, and data collection. By continuing to align spend toward local, small, and diverse businesses, anchors can help create a stronger, more resilient economy for all of San Diego.

Investing in San Diego’s small business economy

Small businesses remain the backbone of San Diego’s economy, now accounting for 99 percent of all businesses and 59 percent of all jobs in the region. These companies create jobs, spark innovation, and bring character to every community.

While many small businesses struggle to compete with larger firms for contracts and cannot always offer comparable wages, securing a major contract from a large buyer is often a major turning point that enables these businesses to grow local quality jobs and better weather economic downturns. Our entire region prospers when small businesses can engage, compete, and win these contracts.

While spending toward small business represents only a portion of total anchor spending in San Diego, it signals a strengthening commitment among major employers to partner locally as global supply chains continue to shift. Of the data reported by the seven anchors surveyed, the share of spending directed toward small businesses increased by an average of 19 percent from 2023 to 2024. Though significant opportunities remain for anchors to further expand local procurement (particularly with small businesses), this growth reflects a meaningful deepening of their investment in the regional economy.

Now is a prime opportunity for small businesses to take advantage of this shift—anchor institutions are continuing to evolve their supply chain strategies to include supplier diversity initiatives, streamlined procurement processes, and new tools to connect with small vendors. For example, SDG&E’s Level Up webinar series is a collaboration with the San Diego and Imperial Small Business Development Center Network to help small businesses to gain the tools and confidence to compete for big contract opportunities. And UC San Diego’s Small Business First program works to direct contracts between $10,000 and $250,000 to certified small and diverse businesses when no large sourcing agreement exists. These efforts not only expand opportunities for small businesses but also maximize our region’s shared prosperity.

What’s next for the Anchor Institution Collaborative

In the coming year, EDC will support both big buyers and small businesses through continued partnership among the Anchor Institution Collaborative.

EDC will continue to help large buyers in the Collaborative expand contracting opportunities through shared learning, goal-setting, and data collection.

In turn, the Collaborative will invest in small business growth and job creation by developing a playbook for vendors, creating a guide outlining the requirements for doing business with anchor institutions, and exploring a fund to help small businesses overcome financial barriers such as insurance premiums, certifications, and compliance costs.

The goal is simple: To make San Diego a place where large institutions and small businesses grow together—where every purchasing decision contributes to a more inclusive, resilient, and thriving local economy.

A collective effort

Economic development doesn’t happen in isolation. It requires inclusion and collaboration across sectors, shared accountability, and a long-term commitment to the region’s people and businesses. The Anchor Institution Collaborative is proof that when our largest employers work together to invest in and lift the smallest, we can collectively strengthen our local supply chain and build economic resilience.

As we look to the year ahead, EDC invites big buyers—whether you represent a healthcare system or a homegrown company, a sports team or an education institution—to join the Collaborative and share resources, expand opportunity, and work together to ensure that San Diego’s growth benefits us all.

Interested in leveraging your company’s spend to support San Diego small businesses?

GET INVOLVED

To learn more, contact:

Lindsey Silvia

Sr. Manager, Economic Development

Whether helping a company expand its local operations or assisting a new business looking to call San Diego home, San Diego Regional EDC works with companies to navigate the complex regulatory processes they may face at the local, state, or federal level.

With a highly skilled workforce, collaborative business culture, and unparalleled quality of life, San Diego and California remain among the most desirable places in the world to live and do business. But in a shifting global economy, regional conversations have increasingly centered around the rising costs of doing business, including overcoming regulatory hurdles in permitting.

You’re not alone in facing regulatory challenges

Though specific regulatory experiences and challenges vary by company and sector, we continue to hear a few common themes from regional businesses.

In interviews conducted during EDC’s 2024 study, “Manufacturing in San Diego: Local Impact Global Reach,” multiple San Diego business leaders shared that the time and complexity involved in securing various permits—sometimes requiring multiple signatures and lengthy review processes—can cost their companies thousands of dollars.

Another common concern: Duplication of effort across agencies. Companies report finding their teams submitting the same information to multiple government offices or undergoing repetitive inspections that slow down operations without meaningfully increasing compliance. Streamlining these processes—through improved digital platforms or inter-agency coordination, for instance—could significantly reduce the time and costs incurred.

Finally, manufacturing and innovation-related businesses are grappling with a regional regulatory framework that has not kept pace with modern advancements. Rules designed decades ago often fail to account for new materials, technologies, and production methods now driving growth in advanced manufacturing, clean energy, and life sciences. For example, firms working with sustainable composites or additive manufacturing techniques are frequently required to navigate approval processes built around older, conventional materials. Not only does this mismatch create unnecessary delays, but it can discourage adoption of cutting-edge solutions that might improve efficiency, sustainability, and competitiveness.

Yet: We also hear that businesses are not inherently opposed to regulation. Many San Diego business leaders we speak with emphasize the importance of maintaining high standards for safety, labor, and sustainability. What they ask for, however, is greater consistency and transparency. When rules change frequently or processes differ across jurisdictions, it becomes difficult for companies to plan and make confident investments. Predictability is often just as valuable to both small business owners and multinational corporations as cost savings.

Ultimately, regulatory reform shouldn’t be about weakening protections, but about making them work better. And especially now, San Diego has an opportunity to lead the way in building a modernized regulatory system that emphasizes efficiency and clarity. It’s a chance for us to preserve what makes our region an attractive place to live and work, while also ensuring that businesses—especially small and growing ones—have the flexibility to innovate and expand.

EDC is here to drive solutions

EDC continues to be your partner in strengthening your connections with industry, education, and public institutions, but we can only do it with your partnership. When regional companies like yours take the time to speak candidly with our team about challenges, we’re better able to relay information and work with elected officials and government agencies to build solutions that responsibly ease the time and cost burdens of doing business.

We invite companies across the region to participate in our ongoing survey and share their experiences with regulatory barriers. Your input will help us communicate the need for smarter, more streamlined regulatory processes and ensure that San Diego remains a place where both businesses and people can thrive.

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Tag: small and mid sized businesses

Local procurement means big impact: The power of the Anchor Institution Collaborative