One of the reasons most often given for major buying entities (corporations, hospitals, universities, state and local government, etc.) to have supplier diversity initiatives and engage in minority business development is that by promoting greater vendor participation, they are helping to support the economic base of the communities in which they do business. This sounds good, but is it accurate?
The answer to this question is unequivocally yes as the activities of the minority business community generate significant economic benefits for not only the local communities in which they exist, but also the nation as a whole. Unfortunately these benefits may not have been fully understood by all of the key stakeholders…until now.
The National Minority Supplier Development Council (NMSDC) retained The Institute for Thought Diversity (ITD) to conduct a study to assess the economic impact that the NMSDC MBE community has on the United States economy (and Puerto Rico).
This impact includes the increased business activity created by the 11,978* NMSDC certified Minority Business Enterprises (MBEs), the jobs that are maintained/created as a result of this activity throughout the various sectors of the US economy, and the incremental business taxes that are generated.
The results of the study illustrate that today, NMSDC MBEs have a total economic impact of over $400 billion dollars in output that results in the creation of and/or preseration of more than 2.2 million jobs held by persons who find themselves either directly or indirectly employed by NMSDC certified MBEs.
These are jobs that not only support individuals, but also contribute to the economic well-being of their families, their communities, and the nation as a whole. This is partic
ularly striking at a time when unemployment is at an all-time high within many minority communities. These same minority suppliers are also generating close to$49 billion in tax revenue for the benefit of local, state, and federal governments.
“It is estimated that minorities will be the new majority in the next 30 years,” said NMSDC President Joset Wright-Lacy. “Attention must be placed on the growth and sustainability of a younger, multiracial population as they become the foundation of the American economy. If minority businesses are not growing and succeeding, the U.S. economy and the global economy will be negatively impacted.”