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The NMSDC grew out of an effort that started in 1968 when three Chicago organizations came together to introduce that city’s first minority business opportunity showcase—The Suppliers Opportunity Fair.  They were the Chicago Association of Commerce and Industry, Chicago Economic Development Corporation (CEDC), and the Chicago Urban League.

The one-day event was so successful that 1969 saw its incorporation as the Chicago Business Opportunity Fair, with fourteen guarantor companies becoming the Fair’s sustaining force and the Chicago Cosmopolitan Chamber of Commerce becoming its fourth sponsor.  That year, the Fair attracted 600 representatives of minority-owned businesses who met with 200 representatives of large Chicago firms.

Inspired by the obvious success of Chicago’s initiative on behalf of the minority business community, a number of other cities began prototype programs.  At the same time, the U.S. Department of Commerce, Office of Minority Business Enterprise, with local offices in a number of cities, was seeking ways to beef up its program to promote minority business development in the private sector. 

Recognizing the need for a national organization to coordinate, nurture and give momentum to this minority business development activity, a group of Chicago companies, led by Robert Stuart, chairman of National Can Corporation, in 1972 organized the National Minority Purchasing Council which was incorporated the following year.  Later the name was changed to National Minority Supplier Development Council (NMSDC).

In 1974, the Office of Minority Business Enterprise entered into a contract with NMSDC “to pursue the single objective of encouraging major corporations to adopt and implement programs to increase their purchases of goods and services from minority businesses.”  This resulted in the establishment and/or funding of a network of Regional Minority Supplier Development Councils (RMSDCs).

The National Council’s role was expanded in 1978 to oversee the RMSDCs activities as well as administer the distribution of funds to them.  In 1977, the National office moved from Chicago to Washington, D.C., where it was headquartered until 1978 when it moved to its present New York City location.

The relationship initiated in 1974 with the Office of Minority Business Enterprise was renewed each fiscal year through 1987 when growing support from the private sector for the NMSDC network led by mutual agreement to discontinuation of government funding.

The amount of purchases by NMSDC corporate members from minority businesses has grown from an estimated $86 million in 1972 to $101.1 billion in 2009.

Currently, minorities represent 34% of the United States population, but minority businesses represent only 21% of total businesses, 7% of gross receipts—and 3% of total corporate purchases.  Much more remains to be done.

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