FOR IMMEDIATE RELEASE
September 2, 2015
ECONOMIC IMPACT REPORT SHOWS
PIVOTAL ROLE OF MINORITY-OWNED BUSINESSES IN U.S. ECONOMY
12,000 minority-owned businesses generate
over $1.1 billion per day in revenue
September 2, 2015 – As Labor Day approaches, and the country celebrates the economic and social progress of the American workforce, a new study shows the enormous impact that minority-owned businesses have on the economy.
The National Minority Supplier Development Council (NMSDC), in partnership with The Institute for Thought Diversity (ITD), researched the effects of their nearly 12,000 certified minority-owned businesses on the U.S. economy and released their findings in an Economic Impact Report. The report revealed that these MBEs produce over $400 billion dollars in annual revenue and actively employ, either directly or indirectly, more than 2.2 million people. Additionally, minority-owned businesses contribute close to $49 billion in local, state and federal tax revenues.
“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.”
Scott Vowels, PhD, Co-Founder of The Institute for Thought Diversity (ITD) and a bestselling author, with more than two decades of procurement and supplier diversity experience, led the efforts on this study. He analyzed the sales and revenues from roughly 12,000 NMSDC-certified, minority-owned businesses to determine the effect they have on the U.S. economy. He confirmed, with empirical evidence, that NMSDC-certified MBEs generate positive economic impact in their local communities and in the nation as a whole through job creation, income generation and tax revenue.
According to ITD, minority-owned businesses reinvigorated the stagnant economy, and continue to create sustainable jobs and positively contribute to the tax base. The Institute states that as the U.S. economy is finally getting back on its feet, it cannot do so effectively without supporting and growing these important economic engines.
The U.S. Census Bureau recently released data from its 2012 Survey of Business Owners, which stated that minority-owned businesses are growing faster than nonminority-owned businesses. The number of MBEs in the United States grew by nearly 40% since the last Survey of Business Owners was conducted, which is three times faster than the growth of the minority population.
Wright-Lacy urged corporate America to increase its use of minority-owned businesses because, by promoting supplier diversity, these corporations are helping to support the economic base of the communities in which they live, work and do business.
“Corporate America isn’t just ‘doing good’ by diversifying its supplier base. By bringing more minority owned businesses into the supply chain, corporations are creating the consumer base of the future, which is absolutely critical to their success,” said Wright-Lacy.
Download the Report
The National Minority Supplier Development Council advances business opportunities for certified Asian, Black, Hispanic and Native American business enterprises and connects them to its corporate members. One of the country’s leading corporate membership organizations, NMSDC was chartered in 1972 to provide increased procurement and business opportunities for minority businesses of all sizes.
The NMSDC Network includes a national office in New York and 24 affiliate councils across the country. There are nearly 1,800 corporate members throughout the network, including America’s top publicly-owned, privately-owned and foreign-owned companies as well as universities, hospitals and other buying institutions. The affiliate councils certify and match nearly 12,000 minority-owned businesses with member corporations that want to purchase their products, services and solutions.
For more information about NMSDC, visit the website at www.NMSDC.org.