New York, NY—The National Minority Supplier Development Council Inc. recently released its 2021 Minority Business Economic Impact Report as a follow-up study to its 2019 report to better understand how the coronavirus pandemic and the racial justice movement affected NMSDC certified minority business enterprises (MBEs) over the last two years. Although the pandemic has disproportionately affected systematically excluded communities of color, the racial justice movement, along with NMSDC’s steadfast focus on serving as an MBE growth engine, has seen certified MBEs grow significantly over the last two years:
- 22% increase in total revenues at MBEs certified by NMSDC ($261 billion, up from $214 billion)
- Asian-owned firms saw a 31% increase
- Hispanic-owned firms saw a 7% increase
- Black-owned firms saw a 27% increase
- Native American-owned firms saw a 6% increase
- 64% increase in total U.S. jobs at MBEs certified by NMSDC (865,000, up from 528,000)
- Asian-owned firms saw a 76% increase
- Hispanic-owned firms saw a 40% increase
- Black-owned firms saw a 73% increase
- Native American owned firms saw a 69% increase
- 126% increase in wages earned by U.S. employees at MBEs certified by NMSDC ($72 billion, up from $31.8 billion)
- Asian-owned firms saw a 125% increase
- Hispanic-owned firms saw a 92% increase
- Black-owned firms saw a 193% increase
- Native American-owned firms saw a 100% increase
- Average employee composition at MBEs certified by NMSDC held steady at 70% minority employees.
Additionally, the report breaks down a state-by-state comparison between 2019 and 2021, which allows NMSDC to work with its Regional Affiliates to take a deeper dive into the why behind the numbers and develop strategies to address the decline in various regions. For example:
- Wyoming saw a 94% decrease in spend with MBEs and an 83% decrease in jobs at MBEs.
- Florida saw a 24% decrease in spend with MBEs and a 21% decrease in jobs at MBEs
- New Hampshire saw a 25% decrease in spend and 17% decrease in jobs.
- Montana saw a 25% decrease in MBEs, 17% decrease in spend with MBEs, and 61% decrease in jobs at MBEs.
Finally, the report discusses how businesses today are highly integrated, with every business relying on other businesses to create their products and services. As a result, MBEs support jobs not only in their own companies but also at the other businesses they utilize while running their operations, which expands the total impact on the United States (U.S.) economy through certified MBEs:
- $396 billion in total economic activity driven through certified MBEs.
- 75 million U.S. jobs supported directly and indirectly by certified MBEs.
- $122 billion in wages earned through supported jobs.
“Overall, this report shows how NMSDC is leading the charge to economic equity by creating connections that help MBEs and corporations to benefit from each other, stoking entrepreneurship, and growing wealth for these excluded communities,” comments Constance Jones, Senior Director of Field Services. “Closing the wealth gap is the key to creating a more united and prosperous society for all, and there is more work to be done!”
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National Minority Supplier Development Council NMSDC Minority Business Economic Impact Report Minority Business Enterprises Asian owned firms Hispanic owned firms Black owned firms Native American owned firms US jobs entrepreneurship supplier diversity programs Constance Jones Stefan Bradham supplier.io