The National Minority Supplier Development Council (NMSDC) recently won a multi-year $3 million Capital Readiness Program grant from the Minority Business Development Agency (MBDA) to launch the accelerated-growth and innovation focused MBE Center.
Through initial support from MBDA, NMSDC will launch this transformation center to scale to certified socially and economically disadvantaged and historically underrepresented individuals, and focus on minority business enterprises (MBEs).
Ying McGuire, NMSDC CEO and president, said in a press release:
We are incredibly grateful for MBDA’s support of the MBE Center for Accelerated Growth and Innovation and look forward to the enormous impact it will have on MBE growth in the coming years.
NMSDC highlights its national geographic reach, as well as its deep partnerships with the nation’s top Fortune 500 corporations and its experience with state/local government, positioning it well to help SEDIs scale their businesses and meet the needs of the dynamic and growing U.S. economy.
It also highlights the help it offers these companies to participate in federal contracting opportunities created by recent legislation, such as the Infrastructure and Jobs Act and the Science and CHIPS Act.
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The MBE Center for Accelerated Growth and Innovation will focus its work on 3 core programs:
- Contract Readiness: This capacity-building initiative will prepare certified MBEs for doing business with the federal government and national/global corporations.
- Capital Connection Program and Platform: This effort will cultivate a powerful network of capital options for certified MBEs, both private and State Small Business Credit Initiative (SSBCI) programs.
- NMSDC Matchmaking and Marketplace Tool and Opportunity Connections: This tool will integrate with NMSDC’s customer relationship management and certification tool to bring certified MBE profiles to an open, online marketplace, connecting them to corporate members and government entities actively seeking suppliers and sourcing solutions.
“We find ourselves at an unprecedented moment in history. 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,” added McGuire.
Vice President Kamala Harris announced the competition winners of MBDA’s Capital Readiness Program. The $125M investment will fund 43 incubators and accelerators with the goal of making participants “finance ready” for debt and equity investments and other government programs. pic.twitter.com/MPNzSUA0ny
— USMBDA (@USMBDA) August 4, 2023
Recognizing that the U.S. is far from achieving economic parity for SEDI, NMSDC also indicates that there is momentum and commitment within government and corporate entities to make the systemic changes necessary to create positive momentum to address this issue.
According to data from the Federal Reserve, white households in the United States have on average eight times the wealth of black households and five times the wealth of Latino households, a disparity that has widened since the pandemic.
For its part, the Small Business Administration (SBA) reported that in 2020 African-American businesses received only 1.67% of the more than $559 billion in federal contracting available to small businesses; Hispanic businesses account for only 1.78% of this spend; and Asia Pacific U.S. companies account for just 1.23%.
At the same time, 43 organizations received MBDA Capital Readiness Program grants, including NMSDC regional affiliate council the Capital Region Minority Supplier Development Council (CRMSDC), as well as strategic partners U.S. Black Chambers Inc. (USBC), the United States Hispanic Chamber of Commerce (USHCC), and the National Asian/Pacific Islander American Chamber of Commerce and Entrepreneurship (National ACE).