In the past 50 years, many efforts have been made to promote business ownership within diverse populations in the United States. The National Minority Supplier Development Council (NMSDC) is the national leader in this effort. The NMSDC acts as an intermediary between minority-based enterprises (MBEs) and multinational corporations. Given the universality of supplier diversity in corporations, large-scale organizations provide business opportunities for MBEs to improve economic equity, diversify their supply chain, and support their communities. Due to the rapidly increasing demand for diversified supply chains, the NMSDC has preserved 1.75 million jobs in the United States while connecting over 15,000 MBEs with 1,500 corporations to support the growth of diverse owned businesses. Supplier diversity is uplifting the social and economic status of diverse populations while supporting the growth of local communities nationwide.
Solutions to Historic Barriers
According to the NMSDC’S annual report, approximately 40% of African American entrepreneurs do not apply for financing programs due to the historic racial funding gap that continues to disproportionately effect people of color. Supplier diversity assists corporations in incorporating MBEs into their supply chains to overcome historic barriers for diverse populations. These efforts have created incredible economic growth, contributing to a tax collection of a massive $13 billion in the past 50 years.
Social Impacts of Supplier Diversity
Historically, diverse populations have been given disproportionately less access to business opportunities; however, over the past several years, this disparity has been brought to the boardroom – and the NMSDC has played an instrumental role in creating this change. In the past 3 years, NMSDC-certified firms have seen a 22% increase in revenue. These MBEs are providing over 856,000 job opportunities for American citizens in a time when outsourcing has become the norm. NMSDC-certified firms have also diversified their hiring practices, with over 70% of their employees identifying as diverse individuals.
The Economic Impact of Supplier Diversity
Between 2019 and 2021, every American state has had a significant increase in the number of MBEs registered, followed by extraordinary employment opportunities created by these businesses. Notably, in California, the number of MBEs surged from 1,938 to 2,488. The growth of MBEs has created incredible domestic revenue growth, totaling over $396 billion between 2019-2021. Despite the challenges of the COVID-19 pandemic during 2020 and 2021, the increasing trend in revenue production and employment opportunities created of NMSDC-certified MBEs shows the strength of supplier diversity, even during global disruption.
By leveraging the construct of supplier diversity, the NMSDC has bridged the gap between diverse-owned businesses and corporations to create a more equitable, economically empowered America.
For more information on Supplier Diversity, please contact our Vice President of Marketing & Supplier Diversity, Stephanie Armstrong: [email protected]