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Four Ways MBEs Positively Impact the U.S. Supply Chain
Supply chains move materials, products, information and money from vendors to purchasers to consumers, driving economic growth in an increasingly globalized world, according to Washington, DC-headquartered Minority Business Development Agency (MBDA), mbda.gov.
As minority business enterprises (MBEs) continue to expand their influence in the U.S. economy, commitment to supplier diversity presents an opportunity to access modern markets and innovative products.
Here are four facets of the U.S. supply chain through which MBEs are driving growth:
1. Market Share: The number of minority-owned firms nearly doubled within the past decade, now totaling eight million businesses. As MBEs continue to grow faster relative to the number of all U.S. enterprises, their diverse perspectives and outputs are fundamental to the entrepreneurial economy to which they contribute more than $1 billion each day.
2. Exports: With 95% of the world’s consumers outside the U.S., exporting is not only a strategy for individual enterprise growth, but also an imperative for American economic competitiveness. MBEs are uniquely qualified to access global markets. In fact, they’re three times as likely to already have international operations and six times as likely to transact in a language other than English.
3. Job Creation: MBEs are responsible for the maintenance and creation of millions of jobs annually, and minority-owned businesses contribute nearly $50 billion in tax revenue to local, state and federal governments. Supplier diversity sustains the economic base and encourages business development in the local communities where vendors and customers reside.
4. Return on Investment (ROI): Research from Miami, FL-headquartered The Hackett Group demonstrates that strategic investments in supplier diversity add, on average, $3.6 million to the bottom line for every $1 million in procurement operation costs. Companies invested in supply chain diversity are likely to see gains through access to new customers and productive relationships with vendors.
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