Wright on … The Value Proposition for Minority Supplier Development       Corporations, like the economy, go through cycles and phases. New programs are introduced to address the needs of the always-

changing marketplace. Other programs are shelved because leadership decides they no longer add value. Unfortunately, minority supplier development may become the next target of a corporate re-shuffling. In the last several months, an increasing number of supplier diversity professionals are questioning the value of minority supplier development and membership in the NMSDC. They are quick to say that they personally understand the value proposition, but their leadership team wants the business case to support the programs. I have to admit a degree of disappointment and frustration that this question is still being asked as NMSDC marks its 40th anniversary this year. I first got involved with minority supplier development in 1987. Even then, supplier diversity was embedded in the company's procurement process. Asking about the value proposition of supplier diversity would have been equivalent to asking about the supplier evaluation process; or in modern parlance, it would be equivalent to asking about the business proposition for corporate social responsibility. Of course, I now realize that I was fortunate to have been in an industry that had learned—sometimes, the hard way—that Asian, Black, Hispanic and Native American suppliers are valuable partners in the corporate supply chain. The telecommunications industry, like the automotive and consumer products industries, understood strong supplier diversity processes produced two related outcomes: innovative, capable suppliers and potential customers. That value proposition has not changed. Strong minority suppliers are important engines for economic growth in the United States. Here are some facts to consider. Minority business is growing at a faster rate than non-minority business. Depending on the ethnic classification, the growth is 6% to 10% faster than non-minority business. Gross sales receipts for minority-owned firms are also growing at a faster rate than for non-minority firms; that growth ranges from 30% to 50%. In addition, employment growth among minority businesses shows significant increase, while employment growth for non-minority firms is on the decline.

Minority businesses are more likely to hire minority employees, an important demographic for future marketing and sales activity. Perhaps the most important fact for corporations looking for new markets to consider: the combined buying power of Asian, Blacks and Hispanics is nearly $3 trillion. This is all good news. Continued utilization of minority suppliers will not only enhance the growth of the minority business community, but it will also enhance employment opportunities for minorities and the buying power those minorities represent. NMSDC is the link between corporate America and those minority businesses waiting for that opportunity to grow. Despite all of this good news, there is still work or NMSDC and corporate America to do. There is one area where minority businesses have not kept pace. As a group, minority-owned firms continue to lag behind their non-minority peers when it comes to economic parity. Equal access to contracting opportunity lags for minority businesses. This is true even when you control for size and type of business. NMSDC is committed to making sure that capable certified MBEs have an equal opportunity to compete for contracts with their non-minority peers. Joset B. Wright President National Minority Supplier Development Council