One of the reasons most often given for major buying entities (corporations, hospitals, universities, state and local government, etc.) to have a supplier diversity initiative 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?
For the first time in history, the Northern California Minority Supplier Development Council (NCMSDC) examines the economic impact of 758* certified Minority Business Enterprises (MBEs) on 48 counties in Northern California that represent NCMSDC’s footprint. Today, NCMSDC MBEs have a total economic impact of over $11 billion dollars in output that results in the creation of and/or preservation of more than 76,000 jobs held by persons who find themselves either directly or indirectly employed by NCMSDC certified MBEs. These are jobs that not only support individuals, but also contribute to the economic wellbeing of their families, their communities, and the nation as a whole. This is particularly striking in a time when unemployment is at an all-time high within many minority communities. These same individuals are also contributing $687.7 million to the tax base of a state that historically struggles with enormous budget deficits.
In many circles, with the rapidly changing demographics of the United States, the minority business sector is arguably the fastest growing segment of small business. Therefore, it stands to reason that ensuring the success of minority business will have significant, positive effects on both the California economy in general and the Northern California economy in particular. Simply put, California’s fledgling economy cannot reach its full and true potential unless the minority business community is growing and reaching its full and true potential.
To download a full copy of the summary report, click HERE.