An organization that is focused on expanding their supplier diversity will be on the forefront of change as it happens. Locally and nationally, an increase in supplier diversity will give a company more opportunities to enhance their sphere of influence, grow their bottom line and be inclusive to the community they serve.
Minority businesses often face unique challenges that require them to adapt to their industries and markets. But overcoming these challenges also means that minority business enterprises (MBEs) frequently emerge at the forefront of innovation and creativity in their respective fields. This presents corporations with an ongoing opportunity to make cost-effective business decisions that have the added benefit of positively impacting minority communities.
The most recent data from The Minority Business Development Agency states there are 8.2 million minority-owned firms in the U.S. that contribute $279.3 billion in U.S. economic output per year. According to the Ohio Minority Supplier Development Council, companies which focus on supplier diversity generate a greater return on procurement investments. This is often attributed to MBEs’ ability to deliver equal value at a lower operating cost. MBE suppliers can offer cost-saving strategies due to diversity spend requirements and taking advantage of numerous federal and state tax incentives and potential rebates. Partnering with an MBE can also strengthen your brand recognition, community outreach, company culture and marketing efforts.
Large and small corporations are seeking minority-owned businesses due to policies that require the company to meet supplier diversity goals. The benefits are only growing over time, and meeting your diversity spend as a corporation may not only help your business but allow you to expand into the government realm (state and or federal) as well.
In meeting compliance requirements and partnering with an MBE, companies can expand their revenue by participating in larger purchase opportunities that mandate a specific amount of spend through an MBE relationship. Growth opportunities can also increase due to the strength of each supplier.
Diversity is especially high in value in terms of community connections, and appropriately so. MBEs are well connected in businesses and may bring more opportunities through various local activities.
Risk management is a great outlet for companies looking to partner with minority-owned businesses. Within risk management, there are opportunities to establish continuous, sustainable relationships across a diverse portfolio of companies.
Partnering with a firm that is focused on expanding and growing the diversity within their client base will present a wide variety of opportunities for connections and expansion across your organization.
Not only is Taylor Oswald a leader in the areas of commercial insurance and benefits consulting, but it has consistently helped organizations in managing these areas of operations.
This article also appeared on bizjournals.com.
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