Ohio MSDC - Council Overview and the Value of Supplier Diversity

Access To Business Connections That Count

Ohio Minority Supplier Development Council

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www.OhioMSDC.org

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Delivering Better Business Results Through Inclusion & Innovation Minority-owned businesses are increasing in number at twice the rate of non-minority-owned businesses, a trend that will accelerate. This is because by the year 2045, minorities constitute more than 50% of the population.

Ohio MSDC Quick Facts

Our Corporate Members strategically look to OMSDC for minority owned companies that can meet their demanding supply chain needs. These collaborations and partnerships create opportunities for our MBEs to deliver innovation, quality products, and world-class service.

$16B Annual MBE Economic Output

Access To Business Connections That Count.

Close to

With Ohio MSDC certification or corporate membership, you can be sure your organization is ready to tackle the challenges of a changing American economy.

100 Ohio MSDC Local Corporate Members

Our members are major corporations and public entities in education, industry, finance, professional services, construction, consumer products and health care organizations that are tapping into the emerging global marketplace.

Close to

400 Ohio MSDC Certified MBEs

Ohio MSDC: A history of success Since 1972, the Ohio MSDC has worked diligently to grow value-driven partnerships between our certified MBEs and our Corporate Members. Our focus is to assist the development and maintenance of effective corporate supplier diversity programs. Over the past four decades, we have been a bridge between corporate America and minority owned businesses.

Major Events Annual Meeting

A Win-Win scenario from top to bottom

The Annual Meeting gathers together

Corporate Members

Ohio’s Supplier Diversity Community as the Council’s leaders share the strategic

become an integral part of

goals for the upcoming year. The Annual

shaping the global supplier

Meeting is the best place to network with

diversity landscape.

peers, learn from industry leaders and advance supplier diversity initiatives.

Business Opportunity Expo BOE is focused on the economic empowerment of minority business enterprises. Corporate buyers, government agencies, minority business enterprises, and key stakeholders in

MBEs gain access to America’s most influential

Ohio converge for this event, which features a Golf Classic at the Columbus Zoo & Aquarium’s Safari Golf Course.

corporations by joining our dynamic community and supplier network.

Supplier Diversity Exchange SDX offers an environment for gaining insight into the procurement world of organizations. Corporate professionals and subject matter experts engage focused discussions, sharing next and best practices on this day filled with networking and expert speakers.

Annual Awards Gala The Annual Awards Gala is the Council’s signature event that recognizes and

For More Information about the Ohio MSDC Ohio MSDC Headquarters 6956 E. Broad St. | #310

@OhioMSDC

@OhioMSDC

Columbus, Ohio 43213 614.225.6959

@OhioMSDC

celebrates the achievements of the Ohio’s most notable MBEs and Corporate Members.

www.OhioMSDC.org

/in/ohio-msdc

YOUR CATALYST FOR GROWTH AND DEVELOPMENT CORPORATE MEMBERSHIP

When you join the Ohio MSDC, you join a world class organization, and the ranks of the most premier corporations in Ohio.

The Ohio MSDC is a nonprofit economic development organization supporting growth in Ohio by encouraging the procurement of goods and services from local minority business enterprises. We understand the benefits of Supplier Diversity and support the business needs of our corporate members.

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OhioMSDC.org

CORPORATE MEMBERSHIP Looking to expand your link to the rapidly growing minority marketplace?

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Ohio MSDC helps you gain greater access to qualified suppliers ready and well equipped to handle your area of need.

It has been shown that companies who focus heavily on

Why Join the Ohio MSDC? Access To a pool of certified and qualified minority suppliers

Assistance To achieve a supplier base that closely reflects your customers’ demographics

Added

supplier diversity generate a greater return on procurement investments than their counterparts. The difference is typically attributed to MBEs’ ability to deliver equal value at a lower operating cost than their competitors. Ohio MSDC's corporate members are leaders in a number of business sectors, including:

Healthcare

Banking & Finance

Cleveland Clinic

Fifth Third Bank

OSU Wexner Medical Center

KeyBank

Premier Health Partners

U.S. Bank

ProMedica

First Financial Bank

Recognition by stakeholders and the

Manufacturing

Construction

local community of your strong

Honda of America, Inc.

Messer Construction Co.

corporate citizenship

Rockwell Automation

Turner Construction Co.

Eaton Corporation

Gilbane Building Company

Opportunity For greater savings and higher quality goods and services due to increased competition

Interested In Becoming A Corporate Member?

James Price Corporate Relations Director jprice@OhioMSDC.org (614) 225-6959 - office (614) 783-2561 - mobile

Owens Corning

Energy

Government Sector

Duke Energy

Ohio Development Services Agency

NiSource

Toledo-Lucas County Port Authority

FirstEnergy

Columbus Regional Airport Authority

Higher Education

Fortune 500 Corporations

The Ohio State University

The Kroger Co.

University of Cincinnati

Nationwide Insurance

Central State University

Procter & Gamble

Cuyahoga Community College

American Electric Power

Become part of a network with access to a national database of close to 12,000 certified Minority Businesses.

YOUR CATALYST FOR GROWTH AND DEVELOPMENT MBE CERTIFICATION

When you become certified with the Ohio MSDC, you join the ranks of the most premier MBEs of our region.

The MBE Certification creates opportunities for your company to do

CERTIFY. DEVELOP. CONNECT. ADVOCATE.

business with major corporations.

What is an MBE?

BENEFITS OF CERTIFICATION If the many benefits of NMSDC Certification can be summed

Certification Requirements

up in one word, that word is

To become a Certified MBE,

MBEs exclusive access to top corporate purchasing agents,

your company must meet the

premium networking events, searchable supplier databases,

following criteria. Both current

business development programs events, and meaningful

and historical facts/data are

introductions to nationally-known corporations.

ACCESS.

Certification gives

considered in determining ownership qualifications and participation in the management and operations of the business.

An MBE is: A for-profit enterprise Physically located in the United States or its trust territories

Recognition Nationally-recognized Minority-owned Business Enterprise Certification

Impact The almost 12,000 NMSDC-certified minority-owned businesses generate more than $1.1 B per day in revenue.

Networking Access to invitation-only corporate

At least 51% owned by a minority

matchmaking and procurement events

group member who is at least

Development

25% African American, Hispanic American, Native American, and Asian American

Access to educational trainings and systems that meet MBEs where they are today and help them grow to where corporations are attracted to them

Owned by ethnic minorities that are U.S. citizens Controlled by ethnic minority owners, including daily business operations

For More Information Call the Ohio MSDC or visit us online the web Online: OhioMSDC.org Phone: (614) 225-6959

Ohio MSDC MBE's Economic Impact on

HIO

Data from Economic Impact Report: 2017 Ohio MSDC Available at www.OhioMSDC.org

$16 Billion Total Economic Impact

CERTIFIED MBES CONTRIBUTE

$1.25 B IN TAX REVENUE TO OHIO

$11.8 B

TOTAL REVENUE GENERATED

BY OMSDC MBES AND FAMILIES

THE

52,960 JOBS CREATED

ADDS UP TO

$3.8 B

TOTAL INCOME IN SALARIES & WAGES

CERTIFY | DEVELOP | CONNECT | ADVOCATE Economic Economic Impact ReportImpact Report Proudly Proudly Sponsored by:Sponsored by:

PART OF THE BUSINESS STRATEGY SUPPLIER DIVERSITY

Supplier diversity benefits provide tangible outcomes in terms of financial benefits and creating competitive advantages.

Supplier diversity transcends corporate social responsibility and is positioned firmly as an economic imperative to remain competitive in today's business market. Learn how partnering with the Ohio MSDC can help your organization grow a successful inclusion program.

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OhioMSDC.org

Supplier Diversity As Part Of The Business Strategy Ohio MSDC can help corporations achieve various steps efficiently to move beyond supplier diversity to suppler inclusion

GAP ANALYSIS

MEASURABLE GOALS

CERTIFIED MBES

COMMUNICATION

Gauge the company's

Use the findings to

Utilize Ohio MSDC to

Communicate both

current supplier

design a world-class

find diverse suppliers

internally and

diversity program and

supplier diversity

that meet your

externally with

benchmark it with

program with specific

supplier requirements

strategic partners to

supplier diversity best

measurable goals.

and have also been

align corporate goals

vetted for their

with supplier

minority status.

diversity.

practices.

Directly Impacting The Performance of America's Corporate Community 99% of diversity suppliers meet or exceed buyers’ expectations 1

Focus on supplier diversity provides a 133% greater return on procurement 3 investments

In the U.S., Certified MBEs contribute $49B in taxes and account 2 for 2.3M jobs BDR corporations report a 212K% to 480K% ROI from Supplier Diversity 4

(1) The Hackett Group (2016). Supplier Diversity Performance Study.

(2) Institute for Thought Diversity (2014). Economic Impact Report - NMSDC. Scott A. Vowels, PhD. (3) The Hackett Group (2015). ROI-related Supplier Diversity.

(4) Ohio MSDC (August, 2017). The Effect of Ohio MSDC Certified MBEs on Ohio's Economy. Sanhka Ghosh, PhD.

Supplier diversity offers intangible benefits.

This creates strategic business opportunities.

More Competitive Supply Chain

Employing diverse suppliers creates more secure and nimble supply chain that provides better protection against emergencies, as well as promotes competition encouraging a better performance at a lower price.

MBEs provide natural access to the domestic minority market which will represent 45% of the total US purchasing power by 2045 or $3 trillion by 2030.5

Global Market Expansion MBEs have generally been shown to be more agile and creative bringing along innovations quicker than their counterparts.

Securing Government Contracts

Domestic Market Access Corporations employing MBEs can leverage the MBEs connections and knowledge of their ethnic heritage countries to mitigate the challenges associated with foreign expansion.

Enhanced Innovation The federal government purchases amount to $600 billion a year. A considerable percentage of that contract is to spend with minority owned businesses to support diversity. Large corporations can attract such contract by building supplier relationships with MBEs. 6

Effective inclusion of supplier diversity requires a program based on business principles. Engaging diverse suppliers assists with innovation and brings new ideas into the company.

(5) U.S. Department of Commerce (Sep, 2000). Minority Purchasing Power: 2000 to 2045.

(6) U.S. Small Business Administration (2012) Minority Business Ownership: Data from the 2012 Survey of Business Owners

Supplier Diversity Integral To A Successful Growth Strategy

The demographics of consumer and labor markets are changing. Consumers and employees value companies that support minority businesses and communities.

More than 40% of new entrepreneurs are minority 7

43% of Millennials in the U.S. identify as African American, Hispanic or Asian 9

Come in,WE’RE

OPEN

29% of businesses are majority-owned by minorities 8

Our MBEs provide 25,000+ jobs, with 45% of employees 10 being minorities

(7) The Kauffman Foundation (2015). Kauffman Index - Startup Activity National Trends. Fairlie, Morelix, Reedy, & Russell.

(8) U.S. Small Business Administration (2012) Minority Business Ownership: Data from the 2012 Survey of Business Owners.

(9) United States Census Bureau.

(10) Institute for Thought Diversity (2017). Economic Impact Report - Ohio MSDC. Scott A. Vowels, PhD.

Want to develop a more robust Supplier Diversity Program? Contact the Ohio MSDC today!

CERTIFY | DEVELOP | CONNECT | ADVOCATE Ohio Minority Supplier Development Council 6956 E. Broad Street, #310 | Columbus, Ohio 43213 (614) 225-6959 | www.ohiomsdc.org

NMSDC is the global leader in advancing business opportunities for certified Asian, Black, Hispanic & Native American business enterprises. Our vision is to create economic equality and growth for minority businesses. We do American business enterprises Our vision is to created economic equality and growth for minority businesses. We do this by connecting certified minority businesses (MBEs) to our corporate members in an effort to increase procurement and enhance supplier diversity.

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Years of Support

Chartered in 1972, NMSDC has established a network of corporate members, now numbering 1,422, and 12,000 certified minority owned businesses. Our corporate members represent America's top companies publicly, privately and internationally owned - as well as universities, hospitals and other institutions with supply chain needs.

2.25

2.25 million people are actively employed both directly and indirectly by NMSDC's certified MBE firms. From its headquarters in New York, NMSDC coordinates its work nationally through 23 regional councils, each of which certifies, develops, connects and advocates for the relationship between MBEs and corporate members in its region.

Million jobs

Doing business with minority businesses is good business for America To achieve our mission, we work through the NMSDC Network to support and facilitate MBE integration into corporate and publicsector supply chains; build MBE capacity and capabilities through our programs and other educational offerings; and facilitate MBE-to-MBE partnerships to meet the needs of our corporate members.

Certify

Develop

Introduce and facilitate a mutually beneficial business relationship between MBEs and corporate members.

Advocate

Examine and investigate each MBE, verifying its viability, its practices and its capacity for growth.

Connect Assist and enable MBEs in expanding their visions and their capabilities to meet the needs of corporate members

Promote and strengthen a universal understanding of the value of minority supplier development.

Minority suppliers are critical to the economic sustainability of the communities in which they operate, as well as to the economic growth of this country. Greater opportunities for the growing minority business sector means the creation of more good jobs. These jobs generate wages and provide individuals with the opportunity to fully participate in the economy whether that means buying goods and services, investing in a home, education, or investing in the stock market.

Everyone wins when everyone can participate.

Joset Wright-Lacy, President, NMSDC "The Fierce Urgency of Now": Why working with minority supplier still matters, CSCMP's Supply Chain Quarterly, Q3, 2016

Check our website www.NMSDC.org for information on membership and certification opportunities.

The Business Case For

MINORITY BUSINESS ENTERPRISES

Fueling Economic Growth White Paper

1

“We are now faced with the fact that tomorrow is today. We are confronted with the fierce urgency of now.” – Dr. Martin Luther King, 1963

IMPACT:

The NMSDC regional councils certify and match more than 12,000 Asian, Black, Hispanic and Native American-owned businesses with member corporations that want to purchase their products, services and solutions.

In 2013 NMSDC member corporations purchased more than $100 billion in products, services and solutions from NMSDC-certified minority business enterprises.

37% 31% 14% 13% Asian

2

Asian Pacific

5% Black American

Hispanic American

Native American

American business has a new champion in the White House. His arrival comes at a pivotal “now” for the National Minority Supplier Development Council (NMSDC).

Success has raised the bar of challenge for NMSDC: today it calls for a new affirmation and commitment to the cause of minority supplier development and its essential role in the American economy.

OUR GOALS 1. To ensure equivalent opportunities for minority businesses in federal entrepreneurship policies and contracting.

2. To demonstrate to federal policy makers and other business stakeholders that NMSDC is the thought leader in advocating for minority business growth and development.

3. To enlighten federal policy makers and others in how NMSDC’s minority supplier development policies and strategies are synonymous with best practices and are key tools for growing mature minority businesses of scale and size across all industry sectors.

4. To establish NMSDC’s authority as the go to resource for comprehensive information and advice concerning policies, regulations, and/or legislation concerning minority-owned businesses, contracting, growth and development.

OUR CALL TO ACTION 1. Advocate – urge the Trump Administration and the Congress to fully enforce existing federal rules concerning MBE diversity and inclusion for direct and federally assisted contracting.

Request that the Trump Administration and the Congress collect, publish and assess data from every federal agency concerning their respective diversity and inclusion goals.

2. Collaborate – partner with NMSDC on ways to modernize and improve minority business/DBE certification processes and particularly federal certification requirements to better correspond to market realities.

3. Support – pilot programs that utilize NMSDC’s expertise in performing certification functions.

3

NMSDC

WHO WE ARE – WHAT WE DO NMSDC means business.

NMSDC is the most influential and successful organization in America that advocates for successful partnerships between the nation’s top corporations and minority business from the Asian, Black, Hispanic and Native American communities.

NMSDC initiates and develops connections between these corporate members with minorityowned suppliers of all sizes – Minority Business Enterprises (MBEs) – that have been certified to meet NMSDC’s rigorous standards for excellence.

NMSDC means business not just because it serves businesses, but also because its commitment to its mission has a greater meaning to the future of America’s economic life.

NMSDC has established a network of corporate members, now numbering more than 1,400.

It includes America’s top companies – publicly, privately and internationally owned – as well as universities, hospitals and other institutions with supply-chain needs.

POWERING THAT MISSION ARE FOUR BASIC GOALS:

Certify

Develop

Examine and investigate each MBE, verifying its viability, its practices and its capacity for growth.

Introduce and facilitate a mutually beneficial business relationship between MBEs and corporate members.

Assist and enable MBEs in expanding their visions and their capabilities, to meet the needs of corporate members.

4

Connect

Advocate

Promote and strengthen a universal understanding of the value of minority supplier development.

THE HISTORIC CHALLENGE

“THE VALUE PROPOSITION”

An executive order from President Richard M. Nixon led to the federal charter of NMSDC in 1972.

When NMSDC works to foster minority supplier development and empower minority businesses, it means business – bottom-line business.

The idea of minority supplier development began with a Presidential mandate for federal government projects to seek the inclusion of suppliers from the Asian, Black, Hispanic and Native American communities in the bidding and awarding of federal contracts. Inspiring this innovation was a series of initiatives in Chicago in 1968 to showcase minority businesses and what they offered.

The success of these efforts got the attention of the federal government. By 1974 the newly formed NMSDC contracted with the U.S. Department of Commerce’s Office of Minority Business Enterprise to encourage major corporations to “increase their purchases of goods and services from minority business. Almost half a century later, NMSDC has expanded to become a not-for-profit, member-funded advocacy organization that has been the leader in thought and action for minority supplier development throughout the U.S., in the private and public sectors.

Forty-five years later, minority business ownership has increased more than 1000%. Three million minority-owned firms account for 21% of all U.S. businesses. They now generate $1 trillion in economic output, employing 5.9 million workers across the nation – a quantum leap from $86 million in goods and services they generated in 1972.

Headquartered in New York, NMSDC powers a network of 23 regional councils, each of which certifies, develops, connects and advocates for the MBEs in its region and effectively serve the needs of corporate members and MBEs.

5

It is dedicated, first and foremost, to “the value proposition” for everyone involved. It is not advocating for any kind of business welfare, handout, set-aside or “breaking the line.”

NMSDC seeks only to build strategic, mutually beneficial partnerships in which corporate needs are met – and often exceeded – by MBEs who want nothing more than an opportunity to bid for and do the job.

By every metric, MBEs certified by NMSDC are recharging the American economy with their success and growth.

Corporations that invest in the philosophy of minority supplier development find that their MBE partners more than meet their challenges. The success of MBEs also has a positive impact on the economies of minority communities – as they move ever closer to becoming the majority of the U.S. population – as well as the nation itself.

What minority supplier development promises is an expansion of ownership of the American economy as well as the American future.

“MBEs have saved us money in many areas across Pfizer, in particular BT consulting as well as packaging and other direct materials utilized at our manufacturing sites,” says Ellen Jameson, Pfizer’s Director, Supplier Diversity, pointing also to the innovative methods and even significant bottom-line value her company gained from working with NMSDC-certified MBEs.

It is most damaging as an underlying factor. Even a tendency toward this kind of thinking can quickly calcify once again into the barriers non-minority business owners rarely have to contend – lack of access to capital, higher or double standards for best practices, absence of good-faith effort, even a lack of timely awareness of corporate bidding processes.

Jameson’s words echo the response from corporations who benefit from the proactive, cost-effective work NMSDC-certified MBEs do in fulfilling contracts.

Yet NMSDC’s success over the last 45 years now is in danger of being perceived as “a job well done” – when that job is still unfinished, and the need for it more critical than ever.

In short, all the issues that fed to the need for NMSDC and its advocacy.

A “post-racial” society does not exist yet.

Discrimination – both incidental and institutional – can slow or stop the progress of MBEs, even in 2017.

“This is shortsighted,” NMSDC President Joset WrightLacy insisted in a recent article.

“There is clear and strong evidence that working with minority-owned suppliers provides business benefits for both buyer and supplier,” she added. “In fact, the state of minority-owned businesses is a critical measure of the nation’s economic health.”

"MBEs have saved us money in many areas across Pfizer.

We have experienced innovation in the packaging and lab equipment areas. When provided with an opportunity to perform as a Tier 1 supplier, they did a great job and cost about 25% less than one of our incumbent suppliers."

- Ellen Jameson, Pfizer’s Director, Supplier Diversity 6

25%

Saving

THE ECONOMIC IMPACT OF WORKING WITH NMSDC-CERTIFIED MBEs

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“Virtually all diversity suppliers meet or exceed expectations, and top corporate performers in supplier diversity experience no loss in efficiency, according to new research from The Hackett Group, Inc. In addition, they see improved quality and often extract other benefits, including increased market share and access to new revenue opportunities.

The research challenges the attitude of many business leaders, who worry that dedicating resources to supplier diversity will divert attention from other strategic services.”

– February 16, 2017 press release from The Hackett Group, Inc.

The Hackett Group’s recent conclusion is not news to NMSDC and its stakeholders, NMSDC-certified MBEs already have a dynamic impact on the U.S. economy, a fact verified in an Economic Impact Report that NMSDC commissioned in 2014. The report – assembled by Dr. Scott Anthony Vowels, a leading expert in the field of supplier diversity – concluded that the broad economic impact of NMSDC’s certified MBEs was both national and local.

This report came in the wake of a strategic restructuring of the NMSDC national network, to better and more effectively service minority business growth in each region of U.S. As the MBDA’s statement pointed out, 59% of MBEs in 2012 were located in California, Texas, Florida, New York and Georgia.

NMSDC-certified MBEs Generate Annually

$400 BILLION = Over $1.1 Billion Daily 2.25 MILLION People Employed

$18 BILLION Local & State Tax Revenue

$53 BILLION Salaries, Wages & Benefits

$379 MILLION 7

Daily Labor Income

(Source: Economic Impact Report 2014)

Economies in other areas are less robust, and they present a challenge that NMSDC is now better equipped to meet. MBEs of all sizes – from annual sales of less than $1 million to annual sales of more that $1 billion – benefit from NMSDC certification, as the numbers show.

Simply put, minority supplier development fuels the broadest possible economic growth. Corporations forge profitable relationships with intensely motivated and innovative suppliers. The success of those suppliers then impacts their own communities: they invest, employ and contribute to the tax base and the commonwealth. On a more profound level, they give us all a vested interest in the American economy.

Last year, the Minority Business Development Agency (MBDA) of the U.S. Department of Commerce reported that – at the end of the five-year period (2007-12) it studied – there were 8 million minority-owned businesses in the U.S. – a 38% increase in that five-year period. It also noted: • Between 2007 and 2012, the number of MBEs grew three times faster than the population growth in minorities.

• Results of the U.S. Census Bureau’s 2012 Survey of Business Owners revealed that MBEs grow significantly faster than non-minority-owned businesses.

• Employment at MBEs increased 33% and gross receipts rose by 57%, while non-minority-owned businesses shrank by 5%.

However, the MBDA noted that MBEs continue to lag in annual receipts behind non-minority-owned businesses: • MBEs averaged $196,000 in 2012, compared to $650,000 for non-minority-owned businesses in the same year.

• By 2012, the number of MBEs had increased in the preceding five years from 21% to 29% – palpable progress, but still behind the growth in U.S. minority population.

Success does not lessen the challenge: the MBE still faces a far steeper climb to achieve equality with his or her non-minority competitors. The barriers to equality in business are subtle and overt, institutional and incidental, and NMSDC is uniquely equipped to change this environment – not by asking but by delivering, as MBEs do again and again. They offer more than a return on investment.

They dream big. They work hard. They are the future.

8

THE “TANNING” AND “GREYING” OF AMERICA: WHAT MINORITY SUPPLIER DEVELOPMENT CAN MEAN TO OUR COMMON FUTURE A larger and more profound reality looms ahead.

By the year 2050, the U.S. will be “minority-majority” nation. Aggregated minorities (including Hispanics) will be in the majority – a projected 53.7% – for the first time since the nation’s founding, while life expectancy continues to grow at the same time.

In a generation, the United States of America will enjoy a very different reality. History suggests we can expect a tipping point even sooner. In fact, the state of California – by itself, the world’s sixth largest economic entity – is already there, in both workforce and population.

The evidence of economic impact by NMSDC-certified MBEs is powerful, even dramatic. Despite the progress, though, it is merely a beginning.

In a powerful article entitled “When Minorities Become the Majority – The Vision for 2050” in a recent issue of Diversity Business, Dr. Leonard

Greenhalgh – Professor of Management at Dartmouth University’s Tuck School of Business – warned that the U.S. was ignoring its minority population.

He identified the direst problem as the inability of minorities to participate fully in the entrepreneurial economy, followed by a quality of education insufficient to staff the workforce of what will surely be a service/knowledge economy.

As of 2012, MBEs were generating $1.4 trillion in combined gross receipts annually. As impressive as that number is, it is also challenging: non-minorityowned businesses generated five times that amount.

It confirms Greenhalgh’s concerns, but it also reaffirms the potential upside of minority business enterprises.

“Unless we revise our present course of complacency and neglect of the minority population,” Greehalgh wrote, “the past success of the U.S. economy – and the unprecedented wealth it has bestowed on U.S. residents – cannot be sustained in the coming decades. This means not only will minorities and women continue to be denied a fair share of wealth and opportunity, but all Americans will also face a bleaker future.”

9

NEXT STEPS: HOW PUBLIC POLICY CAN STRENGTHEN THE INCENTIVE TO INCLUDE MINORITY BUSINESSES IN CORPORATE BUSINESS OPPORTUNITIES In the beginning, it was the support of the federal government that gave life and momentum to the cause of minority supplier development. Now more than ever, that support is needed for the next stage in this vital work.

At this moment in American history, that work, NMSDC and the philosophies and intentions of a Republican President and Congress can be very much on the same page.

What NMSDC is calling for is not an “ask.” No appropriations, no favors for MBEs – just equity in the marketplace of goods and services, and equality in the process of competing to deliver.

To that end, NMSDC urgently requests that the new administration and Congress reconsider a recent budget proposal to eliminate the Minority Business Development Agency (MBDA) of the U.S. Department of Commerce.

The MBDA was created in 1969 under another Republican President – Richard M. Nixon – who saw the wisdom and the long-term societal benefit in minority business development. The MBDA led directly to the formation of private organizations, among which NMSDC continues to be the thought leader, that advocate for minority businesses – not merely as a social cause, but as a value proposition for American business.

In its December 2016, the MBDA released a review of existing disparity studies, Contracting Barriers and Factors Affecting Minority Business Enterprises. The findings were drawn from 100 disparity studies, summaries and reports that are publicly available and accessible.

They bring new emphasis to the challenges NMSDC and its certified MBEs continue to confront:

**Access to Capital and Network Access barriers can arise due to both discriminatory and non-discriminatory reasons and also influence non-discriminatory barriers such as bonding and insurance.

(Source: Contracting Barriers and Factors Affecting Minority Business Enterprises A Review of Existing Disparity Studies - December 2016.)

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The review’s results echo the words above and provide substantial anecdotal evidence. Two of its conclusions stand out: • The most difficult barrier to address is the presence of exclusionary networks encountered through public bidding.

• The largest absolute number of observed substantial disparity ratios was for African American construction businesses.

Overall, the groups and industries with the highest proportion of substantial disparities were: • Asian American professional services • African American construction services • Hispanic American architecture and engineering services NMSDC exists to solve these problems.

NMSDC assists certified MBEs in developing their business, then connect them with NMSDC corporate members, a process that is equitable and profitable to all stakeholders while advancing the cause of minority business. Enlightened and visionary corporate executives can testify to the value of adding MBEs to their rosters of suppliers.

Not only does it have a positive impact on the minority community, experience proves again and again that the impact at the corporate level is dynamic.

NMSDC’s mission starts, critically, with recognition and certification of viable MBEs. These MBEs can only be majority-owned and operated by minority entrepreneurs. The process brings integrity to the advocacy of minority supplier development.

It also isolates inevitable abuses. The advantage of hiring a minority supplier has led, in some instances, to “shell” companies, in which a minority figurehead merely fronts for non-minority owners who take advantage of the company’s distinctive status in bidding and contracting.

Laws and regulations already exist to ensure the integrity of the bidding and contracting process for MBEs. However, enforcement and consistency are flagging. A renewed commitment to these standards is an efficient and economical way to strengthen the public sector’s commitment to minority supplier development.

All of the initiatives identified in the review summary of the MBDA’s Contracting Barriers report come down to a single factor – equality. MBEs know they have to redouble their efforts to achieve their goals.

They do not feel entitled to success, only to opportunity.

During his campaign in the 2016 election, President Donald J. Trump asked the African-American community, “What do you have to lose?”

In the minority business community, the answer could well be, “A lot.”

Our hope is that President Trump – who, himself, is a businessman committed to a fair deal for American business – will understand and support the value proposition that is ready, willing and able in a vibrant and growing minority business environment.

Aligning with our corporate strategies and values, BP is committed to providing opportunities to diverse businesses that are competitive, operate safely and efficiently, and are of scale. Partnering with diverse firms allows us to accomplish our objective of being a focused oil and gas company delivering value over volume, while simultaneously bringing economic benefits and job growth to local communities.

– John Mingé, Chairman and President, - BP America 11

A PATH TO SUCCESS

OUR CALL TO ACTION

The business of NMSDC is the promise of that robust American future for all.NMSDC is synonymous with best practices, with a proven record of growing mature MBEs of scale and size across all industry sectors.

• Advocate – urge the Trump Administration and the Congress to fully enforce existing federal rules concerning MBE diversity and inclusion for direct and federally assisted contracting. Request that the Trump Administration and the Congress collect, publish and assess data from every federal agency concerning their respective diversity and inclusion goals.

Its goal in the immediate future is to work closely with federal policy makers in the executive and legislative branches, as well as other business stakeholders, with the recognition of NMSDC as the thought leader in minority business growth and development.

• Collaborate – partner with NMSDC on ways to modernize and improve minority business/DBE In its 45-year history, Corporate America has recogcertification processes and particularly federal nized NMSDC as the gold standard in minority supplier certification requirements to better correspond to development, yet real success also creates challenges, market realities. and – at a pivotal time in the history of American business – NMSDC embraces the challenges.

• Support – pilot programs that utilize NMSDC’s expertise in performing certification functions.

OUR GOALS • To ensure equivalent opportunities for minority businesses in federal entrepreneurship policies and contracting.

• To demonstrate to federal policy makers and other business stakeholders that NMSDC is the thought leader in advocating for minority business growth and development.

• To enlighten federal policy makers and others in how NMSDC’s minority supplier development policies and strategies are synonymous with best practices and are key tools for growing mature minority businesses of scale and size across all industry sectors.

• To establish NMSDC’s authority as the go to resource for comprehensive information and advice concerning policies, regulations, and/or legislation concerning minority-owned businesses, contracting, growth and development.

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Because NMSDC means business, its work is more focused than ever before.

If not in the fiercely urgent now, when?

If not NMSDC, who?

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Visit us online: www.NMSDC.org | Follow us

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Top 10 reasons to be NMSDC Certified 1.

As an NMSDC certified minority business owner, your business profile will be available to more than 460 national members that represent some of America's largest public and privately-owned global companies. In addition, many hospitals, universities and other regional buying institutions are members of NMSDC's 23 affiliated Regional Councils.

This means increased access to contracts to help you grow your business.

2.

The NMSDC Certification indicates to NMSDC's corporate members and to government entities that you have completed a rigorous business and financial review and that your business is a legitimate minority-owned business.

This confirmation is very important to corporations and government entities as they complete their vendor selection process.

3.

NMSDC and its 23 regional affiliates provide corporate member and MBE matchmaking/networking events that create opportunities to marketing products and services. Over 6,000 corporate members and certified MBEs attend NMSDC events on an annual basis.

4.

MBEs have the opportunity to partner with other MBEs via the MBE2MBE program. The MBE2MBE program allows minority businesses to expand their capacity or to find partners to address an RFP that may have been out of reach without MBE collaboration.

5.

NMSDC offers MBEs a variety of unique programs like CATAPULT, an innovative business development initiative offered

by Capital One's Supplier Diversity team in conjunction with NMSDC. MBEs will gain insights on how to solve complex business problems and introduce new products and services.

6.

NMSDC offers MBEs the opportunity to attend the Foster School of BUsiness at the University of Washington and the Tuck School of Business at Dartmouth College. The courses feature curriculum focused on Finance and Accounting; Human Resource Management; Leadership; Marketing and Branding Strategies.

7.

NMSDC Corporate Members offer scholarships to MBEs to attend Northwestern University's Kellogg School of Management. This team-based approach provides MBEs the opportunity to develop growth strategies specifically to build capacity and sustainability for the future.

8.

MBEs also receive awards and recognition at NMSDC and regional affiliate networking events. These awards highlight for corporate members MBEs determination, achievement and leadership.

9.

NMSDC supports Access to Capital and Financial Literacy Programs. Examples include NMSDC's Growth Initiative and other programs supported by NMSDC's partners and members.

10. Certification by NMSDC has helped to make the dream of successful business ownership a reality for thousands of MBEs since 1972. Certification is an important step toward building businesses that support families, communities and the economy.

Ohio Minority Supplier Development Council

Better Business Results Through Inclusion and Innovation

#OhioMakesItHappen Ohio Minority Supplier Development Council

@OhioMSDC

@OhioMSDC

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www.OhioMSDC.org