2023 Minority Businesses Economic Impact Report Shows Significant Growth for Black-Owned Businesses


By Kiara Doyal, The Portland Medium

Last week, the National Minority Supplier Development Council (NMSDC), the longest-operating business growth engine for the broadest group of systematically excluded communities of color, released its 2023 Minority Businesses Economic Impact Report. This year’s report showed impressive growth and development in different communities, like the Black community.

According to Ying McGuire, President and CEO of NMSDC, the report provides a “crucial evaluation of how certified MBEs have performed over the past year and identifies further opportunities for NMSDC and its corporate members to act as powerful catalysts for minority business growth.”

With a goal of MBEs earning $1 trillion in revenue by 2030, the annual report allows NMSDC to effectively track their progress towards that goal.

NMSDC remains determined in its commitment to lead the charge towards a more inclusive and prosperous economic society, as this year’s report shows that Black businesses began to overcome historic disparities, achieving double-digit increases in revenue, increasing 12% from the year before to $66.5 billion in revenue.

“The report is a useful tool not only for NMSDC to measure progress towards its $1 trillion goal and its larger vision of creating generational wealth for the communities we serve, but it also serves as a rallying cry for Corporate America and the government to create stronger pathways for minority businesses to succeed,” says Stefan Bradham, NMSDC Vice President of Marketing, Communications, and Events.

Bradham says that the organization supports MBEs through four pillars:

• Certify — As the first organization to certify minority-owned businesses, they provide first-in-class minority business certification that Corporate America trusts.

• Connect — NMSDC connects MBEs with corporate members, other MBEs, and other nonprofit and government partners to help them compete for contracting opportunities and accelerate their business growth.

• Develop — NMSDC provides several different development opportunities for our MBEs aimed at helping them scale their business.

• Advocate — NMSDC provides policy and thought leadership for minority business growth at local and federal levels and within corporate America.

Black businesses have historically faced several barriers including a lack of access to capital and legal regulatory barriers. Jetheda Hernandez, Senior Director of MBE Services and Strategic Partnerships believes that our country is still feeling the effects of the general discrimination that the Black community has faced throughout history which led to tragedies such as the dismantling of Black Wall Street in Tulsa, where 35 blocks were systematically looted and burned, destroying 190 businesses and leaving 10,000 people homeless.

“I think Black businesses, like many other MBEs, are incredibly resilient and flexible,” says Hernandez. “These characteristics give them some natural advantages in the somewhat tumultuous economic environment we have found ourselves in.”

While NMSDC applauds the notable strides in trying to narrow the disparity gap for Black businesses, further progress is required as Black businesses generate only 18% of the total revenue experienced by NMSDC-certified MBEs, despite making up 40% of total NMSDC-certified MBEs. According to Hernandez, this disparity remains even starker for Black women-owned businesses, which generate only 13% of all Black Minority Women Business Enterprises (MWBEs) revenue, despite making up 45% of all certified MWBEs.

Forming strategic alliances with key organizations like such, NMSDC was able to show their support in addressing the disparity gap for Black businesses by supporting the BeyGOOD Foundation’s Black Parade Route, which celebrates small business owners with relief grant opportunities, and promoting the Advancing Black Entrepreneurs on-demand sessions by Chase for Business, which is an educational program designed for Black business owners.

“There are a lot of great organizations both within NMSDC and without, that are incredible resources for Black entrepreneurs, like U.S. Black Chambers Inc, Global Black Economic Forum, and the BeyGOOD Foundation,” says Hernandez. “So, I think leveraging these resources is a key part of overcoming disparities that the Black community faces.”

Despite the slightly discouraging information shown in this year’s report, Bradham is hoping to continue to see growth and create greater opportunities for MBEs and Black MBEs.

“In the coming years, we would like to see continued double-digit growth for all of our MBEs and accelerated progress to our march to $1 trillion in revenue for NMSDC-certified MBEs,” says Bradham. “Also, we definitely want to see further progress for Black MBEs, to bring their revenue more in line with their overall representation within the NMSDC network.”