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October 16, 2024

McGuire: 'No turning back'

By M.V. Greene

As stakeholders of the National Minority Supplier Development Council Inc. (NMSDC) huddle up for the annual Conference & Exchange Oct. 20-23 in Atlanta, Georgia, CEO and President Ying McGuire — speaking exclusively to Minority Business News USA — reflected on what’s ahead for the nation’s leading minority supplier certification organization and how she is navigating priorities in some choppy waters impacting NMSDC’s mission both internally and externally.

McGuire, who assumed leadership of NMSDC in July 2021, said the organization’s work, initiatives and future positioning are proceeding as planned and envisioned despite what continues to seem like a lasting whirlwind.

Much will be on display at the conference — whose theme is “Defining New Norms” — which is being held again in conjunction with the U.S. Department of Commerce Minority Business Development Agency’s (MBDA’s) 2024 National Minority Enterprise Development Week (MED Week) annual program. McGuire said the NMSDC event will target orienting minority business enterprises (MBEs) to supplier opportunities in various industries, including emerging fields such as artificial intelligence (AI) and clean energy.

NMSDC has been undertaking a critical review of many of its programs in recent years. It wants to ensure that the organization's work is aligned with today’s economy and that MBEs will be at the forefront of emerging technologies. The topic was also addressed in earnest in May at the organization’s 2024 Minority Business Economic Forum in Seattle, Washington.

“It is very essential for us to help [MBEs] understand opportunities for the future and to get them ready now,” McGuire said. “Besides building on the traditional industries that MBEs continue to progress in, we really need to pivot to future opportunities.”

In partnership with MBDA through $3 million in funding from MBDA’s Capital Readiness Grant program in 2023, for instance, NMSDC established the MBE Center for Accelerated Growth, Innovation and Resiliency for delivery of comprehensive contract and capital readiness programming nationally through the NMSDC network. McGuire said that the four-year program aims to generate $1.2 billion in new contracts and $500 million in capital to help scale MBEs for greater supply chain opportunities.

McGuire said NMSDC also is collaborating closely with federal partners to leverage opportunities stemming from recent legislation, such as the $53 billion CHIPS and Science Act (CHIPS), which seeks to reestablish U.S. leadership in semiconductor manufacturing, and the

The Infrastructure Investment and Jobs Act (Bipartisan Infrastructure Law) is a $1.2 trillion program to spend on transportation and infrastructure projects and new investments and programs.

She said such federal programs create urgency within NMSDC’s national office and its 23 regional affiliates to position MBEs to fill the gaps to meet the demands of corporations leveraging the initiatives. The NMSDC network includes more than 17,000 MBEs and more than 1,500 national and local corporate members seeking to purchase goods and services from the certified MBEs through their supply chains.

McGuire noted NMSDC lacks overall resources to serve the millions of MBEs nationwide and thus needs “to be very thoughtful and targeted” to address the requirements of its corporate partners.

“We need to understand the corporate demand, insights and forecasts and go deliberately looking for MBEs in those spaces,” she said. “For those who are not ready, we need to figure out a developmental path to get them there.”

A key, overarching connection to NMSDC priorities is its “March to $1 Trillion” initiative to accelerate minority business growth and advance economic equity. Now in its third year, the initiative seeks to raise aggregate NMSDC-certified MBE annual revenue above the $1 trillion mark.

McGuire said the initiative is on track to reach its goal by 2030. NMSDC’s 2023 Minority Businesses Economic Impact Report showed a 15% growth increase toward the goal from 2022 to 2023 to $363.6 billion by NMSDC-certified MBEs.

“If this trend continues, we feel that we can reach $1 trillion by the end of 2030. It is the first year we’ve put a date on a board,” she said.

In addition, the report noted that the $363.6 billion in revenue translates to 1 million new U.S. jobs, $81.5 billion in wages earned by MBE employees, and $57.1 billion in taxes generated.

As she continues her leadership of NMSDC, McGuire said internal and external challenges are heavy on the organization’s agenda.

Internally, NMSDC continues implementation of its new hybrid certification model that shifts MBE certification processing to the national office, altering the national office’s relationship with its regional affiliates and has promoted ongoing discussion. McGuire said the changes have generated some uncertainty within the NMSDC network but that she understands that “change can generate uncertainty, tension and emotions.”

She noted the hybrid certification model, approved by the NMSDC board as a part of a strategy refresh during the organization’s 50th anniversary year in 2022, has been delayed but is set to begin in earnest after the conference with phasing in at the regional affiliates throughout 2025.

McGuire noted that some of the restlessness around the new model stems from “a lack of context and differing interpretations, leading to misunderstandings.”

“There is no turning back,” she said. “After 50 years, this organization needed a new approach. We’re not going to be able to serve the evolving needs of our corporate customers and MBEs if we don’t evolve. Like in any organization, some are going to be for it, and some are not going to be for it. If anyone has concerns, I encourage direct dialogue.”

On external fronts, NMSDC also has to address, with other advocacy and civil rights organizations, strident challenges to diversity, equity and inclusion (DEI) initiatives, including supplier diversity. In a recent report on DEI, the Congressional Black Caucus, for instance, urged corporate CEOs to reaffirm their organization’s commitments to DEI and reiterate their dedication to upholding DEI values in their daily operations.

Some challenges to DEI and supplier diversity have arisen through well-funded litigation by opponents, which McGuire said has galvanized advocates, including NMSDC. Public policy and coalition work to defend and advance supplier diversity “has become a big part of our job,” she said.

“A big part of cutting through the noise is really providing strong data to push back against the anti-diversity narrative out there,” McGuire said. “It is very important that we continue to make the strong business case for why investing in these initiatives is still really a smart business decision.”

To learn more about NMSDC, visit nmsdc.org.

To learn more about the NMSDC’s 2023 Minority Businesses Economic Impact Report, visit nmsdc.org/news/nmsdc-releases-the-2023-minority-businesses-economic-impact-report.