🔒Supplier diversity key to minority business growth

Q&A talks with Peter Hurst, executive director of the Greater New England Minority Supplier Development Council.

Q: What is the Greater New England Minority Supplier Council and what is its role when it comes to minority business?

A: The Greater New England Minority Supplier Development Council (GNEMSDC), which has been in existence for over 40 years, is one of the 24 regional councils that operates under the auspices of the National Minority Supplier Development Council (NMSDC). The primary focus of GNEMSDC is to promote minority business development throughout New England.

The mission of GNEMSDC is driven by four pillars: certify, develop, connect, advocate. We certify minority-owned businesses (MBEs) seeking to pursue business opportunities with corporate and public-sector purchasers. We develop MBEs by providing one-on-one business consulting and educational opportunities. These development services are provided by GNEMSDC directly and through our operation of Minority Business Development Agency (MBDA) Business Centers that we operate in Bridgeport and Boston.

We have a contract with the Connecticut Department of Transportation to provide advisory services and educational opportunities to MBEs seeking to do business with the agency. We seek to connect MBEs with purchasers of goods and services through a number of events we host throughout the year, including a Business Opportunity Expo and a robust technology platform. We advocate for minority business development at all levels of government.

Q: What is the state of minority business in Connecticut? What are some of the challenges it is facing?

A: Like many business owners, owners of MBEs face a number of challenges doing business in Connecticut. In addition, MBEs face unique challenges in obtaining access to debt and capital, which is necessary for their businesses to grow and thrive. The issues with access to capital also affect the ability of many MBEs to achieve the scale necessary to compete for certain opportunities. And, no one should be deluded into believing that the election (and re-election) of an African-American president now means that we have a “color-blind” society. That unfortunate reality has an impact on opportunities for many MBEs.

Q: How reflective are demographics when it comes to minority business ownership? Are the numbers proportionate or is business ownership in Connecticut still skewing more white male than other demographics?

A: MBEs are underrepresented in the universe of small businesses in Connecticut. Ethnic minorities in Connecticut are probably over weighted with respect to issues like unemployment, under employment, the income gap and the wealth gap. Those factors also affect MBEs. The wealth gap and the income gap, coupled with the difficulties that MBEs face in obtaining access to capital, has a direct negative impact on the number of MBEs in Connecticut.

Q: The state mandate that was effective Oct. 1 to extend minority-contractor inclusion to municipal public-works projects involving state dollars is drawing skepticism from contractors and small-town administrators. How does your group feel about the issue? Is the state up to monitoring these inclusions?

A: The mandate was absolutely necessary and GNEMSDC supports it. GNEMSDC is ready, willing and able to help contractors and public-sector officials connect with MBEs that are qualified and ready to do business with them.  We also are available to assist the state of Connecticut in any way we can to increase the number of real opportunities for MBEs as a result of this mandate.

Q: Do you feel as others do that this is going to bog down the process for minority contractors? Will it hurt them rather than help them financially?

A: I think that this mandate will help MBEs. More importantly, to the extent that you increase the universe of suppliers to include diverse suppliers, this mandate will increase competition. Increased competition will benefit the enterprises that will now do business with MBEs. And, increased competition and increasing the number of MBEs that obtain municipal work will only help the public sector.

Q. Will there come a time when minority set asides aren't necessary? What would that entail?

A: Only if decision makers in the public and private sectors begin to truly understand and appreciate the importance of supplier diversity. Supplier diversity is important for a number of reasons. Increasing the number of successful MBEs has the benefit of reducing the wealth gap and the income gap that exists in Connecticut and in the United States.

Since MBEs tend to hire ethnic minorities and from the communities in which they operate, supplier diversity has the benefit of reducing unemployment and under employment in a targeted way. Successful MBEs and their employees pay taxes.

NMSDC recently published an economic impact study that found that the more than 12,000 MBEs certified by affiliates of NMSDC had the following impact on our country: $400 billion in economic output; the creation or retention of 2.2 billion jobs; and the generation of $47 billion in tax revenue at the local, state and national levels. Supplier diversity is not just the “right” thing to do. In light of these numbers, supplier diversity is a very, very “smart” thing to do.