Recognizing that minority small businesses need greater support to grow, the Minority Business Development Agency (MBDA) has given a multi-year, $3 million Capital Readiness Program grant to the National Minority Supplier Development Council (NMSDC). The grant will be used to launch the MBE Center for Accelerated Growth and Innovation.
The NMSDC was founded in 1972 as a business growth engine for systematically excluded communities of color that includes Asian Indian, Asian Pacific, Black, Hispanic, and Native American. Its mission is to assist upward mobility so that the emerging majority of Americans have equal participation in America’s free-market capitalism and entrepreneurship.
The NMSDC noted in its recent announcement that the Federal Reserve’s studies show a significant wealth disparity between white households in America and those of Black and Latino households. They cite that white households on average have eight times the wealth of Black households and five times the wealth of Latino households.
The Small Business Administration (SBA) cites similarly the disparity in federal contracting dollars between those groups. In 2020 Black businesses received only 1.67% of the $559 billion in federal contracting dollars available to small businesses, with Hispanic businesses representing only 1.78% and Asian Pacific American businesses representing only 1.23%.
To counter those disparities, the newly launched Center will focus on historically underrepresented certified socially economically disadvantaged individuals (SEDIs) and minority business enterprises (MBEs) with these core programs:
Contract Readiness: MBEs will be prepared to do business with the federal government and national/global corporations.
Capital Connection Program and Platform: A network of capital options for certified MBEs that includes both private and State Small Business Credit Initiative (SSBCI) programs.
NMSDC Matchmaking and Marketplace Tool and Opportunity Connections: The NMSDC’s customer relationship management and certification tool will present certified MBE profiles onto an open, online marketplace.
NMSDC CEO and President Ying McGuire acknowledges the support of the MBDA and the long-term effort that is needed for minorities to increase their share of America’s economy.
“Despite the progress that has been made in supplier and business diversity, we know that we still have a long way to go if we are going to create the thriving, equitable business environment that is the key to not only achieving generational wealth for communities of color but also for the long-term growth and sustainability of our nation’s economy,” said McGurire.
The grant to NMSDC recognizes its reach across America and existing partnerships with top Fortune 500 corporations, as well as its longstanding connections with state/local government that will help SEDIs scale their businesses. The organization also is well-suited for helping to increase participation in federal contracting opportunities included in recent legislation such as the Infrastructure and Jobs Act and CHIPS and Science Act.
More information may be obtained from the NMSDC Center for Accelerated Growth and Innovation by contacting Lisa Morris, NMSDC vice president of strategic alliances, programs, and events at Lisa.Morris@nmsdc.org.
