is a proven investment in the whole economy
When you invest in supplier diversity, your actions lead directly to economic growth for the whole economy. According to a report shared by McKinsey over the summer, “if spending with certified MWBEs doubled, to $2 trillion, from the current estimate of $1 trillion, that could generate $280 billion in additional income and four million jobs for minority populations and women.”:
What does that additional spending – and the resulting income and job creation – lead to that generates positive value throughout the economy?
Here’s more from McKinsey:
“About 210,000 of those new jobs would be in executive and management positions—which emphasizes the role MWBEs play in stimulating wealth creation and improving intergenerational outcomes: for example, children from high-income families are six times more likely to graduate from college,9 and families are 58 percent more likely to have health insurance when household incomes rise above $75,000.10 And every $1,000 increase in household income raises the employment levels of young adults in those families by 1 percent.11
Kori Hale is CEO of CultureBanx, a US media company covering the intersection of business, technology and innovation for minorities. In June, she wrote in Forbes that “diverse supplier representation will contribute to the long-term success of the U.S. economy” and specifically, that “if 40% of the $50 billion that companies have pledged to Minority/Woman Owned Business Enterprises (MWBEs) went into these sectors, that would equal $20 billion in revenues for MWBEs. This would bring some 190,000 jobs and $15 billion in income for minority communities.”
The upshot is a validation of what supplier diversity advocates have been saying for a long time: inclusive, intentional spending is a strong tool for redress of past wrongs but also for broad economic impact. It is not just a moral obligation and not just a strategic choice that brings competitive advantage: Supplier diversity is a direct benefit to the entire economy.
As the fourth quarter unfolds you should be asking what your company, school or organization is doing with intentional purchasing at every level and making a plan to do more and better. Your company stands to gain from the effort, and the whole economy is depending on you.
For a free consultation on how to bring supplier diversity at your company, school or organization to the next level, reach out to us at ConsciousCustomers.com