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Minority Business Development - Why Now More than Ever We have to go back to the Civil Rights era in the 1950s through the 1960s to fully understand why we do minority business development. People sometimes forget that in the 1950s America suffered from its unique brand of apartheid in all of the former Confederate states. And in most of the northern states that had become a refuge for migrating blacks since the Civil War, forms of segregation and discrimination took a less overt form. The integration of public and civil services, the right to vote the ability to live and work without discrimination based on the color of ones skin was not something that changed overnight or without sacrifice. Dedicated people of all races and creeds gave their lives to make America a place where race was not an impediment to accomplishing your dreams. One of the fruits of this struggle that was the development of educational opportunities for Black Americans, Asian Americans, Native Americans and Hispanic Americans. Remember George Wallace standing in front of the University of Alabama saying that Negroes would not be allowed in that fine institution. If the Crimson Tide football team is any indication, we have unquestionably come a long way since those dark and troubling days. Yet while progress was almost steadily made in areas of basic civil rights, educational opportunities and job opportunities, opportunities in business, the key to full participation in American culture were slowest to develop. Richard Nixon, some might say ironically, that pushed the concept of "Black Capitalism" in the late 1960s as a key missing ingredient in the Civil Rights struggle. Nixon created the Office of Minority Business Enterprise to in his words help blacks and other minorities, but particularly blacks, "get their piece of the action". But from the very beginning of the federal program to promote minority business development, there were challenges from non-minority businesses who claimed that it was unfair for the federal government or any government to ameliorate hundreds of years of discrimination if it hurt a non-minority business. But despite all of the legal challenges that have narrowed the ability of public sector efforts to bring about racial and ethnic inclusion in American business, minority entrepreneurs accepted the challenge and grew from almost non-existence to where we are today. The NMSDC played a critical role in this development by taking the effort of minority business development to the private sector. Corporate members of the NMSDC pledged to give certified minority businesses opportunities. Certification was important because from the very beginning of the Nixon era programs, non-minority businesses were setting up "fronts" to steal opportunities away from legitimate minority enterprises. This practice continues to this day, and is particularly prevalent within the women's business community. So progress has been made despite the legal challenges to the point where today the Federal government does not technically have a minority business procurement program. Federal contractors could meet all of their goals and not buy one dime of services from a certified MBE in our Council. And this is one of the reasons why Minority Business Development is needed now more than ever. Supporting minority business development has been on the legal defensive for years. At the same time the push for diversity has increased. It might seem strange and contradictory that as emphasis on minority business development in the public sector has waned, the push for diversity and inclusion has grown. Before it is misunderstood what I am about to say, I want to make it clear that diversity and inclusion is needed and is desirable. With that being said, I must also state that diversity and inclusion with regards to business development cannot and should not come at the expense of minority business development. This is a lesson that the best corporate members of the NMSDC understand, but I hazard to state that not all corporations understand. In a tough economy like we have right now, corporations are not buying as freely as they once did and as a result minority businesses and minority business development is at risk. The role of supplier diversity leaders (I uses leaders and not managers for a reason) is to make sure that minority business development and minority businesses are treated fairly in these difficult times and not just jettisoned off the supply chain. This takes real leadership and leadership takes guts. Yes, there are other corporate goals, but this is a corporate goal that is just as deserving for the long term health and survival of a corporation as any. Supplier diversity leaders must believe this, and if they do not, minority business development and minority businesses are in trouble. I write much about how MBEs need to do this or they need to do that. Well corporate leaders in minority business development have some needs to do also. And primary among them is to get out in front of minority business development. To make the case to internal stakeholders that even if a MBE is a little more expensive to do business with right now, it does not mean over the next few quarters that will be the case if the corporation is willing to "Develop" that MBE. In baseball, the Yankees do not expect a double A shortstop to come in and replace Derek Jeter tomorrow. They do expect that double A shortstop at some point to one day compete for that position. MBEs need to be brought into corporate supply chains so that one day they can compete for major business and support the goals and objectives of the organization. I am afraid that if corporations do not rededicate themselves to minority business development we will lose a generation of minority entrepreneurs who started their businesses with a dream to get their piece of the action. Make no mistake about it, we have much to be proud of in the brief history of minority business development, but now is not the time to rest on our laurels. | | Political Candidate Planning to Attend the Business Opportunity Expo | | We have heard from a number of the leading political candidates that they will be attending the GNEMSDC Business Opportunity Expo and Conference. Both major party candidates for Governor and Senator from Connecticut have been invited and we have confirmation that all four have it on their calendar. Dan Malloy the Democratic candidate for Governor is confirmed to attend on Thursday and will make some brief remarks at the Thursday luncheon. Mr. Tom Foley the Republican candidate for Governor is also trying to attend on Wednesday around lunch. Attorney General Richard Blumenthal, the Democratic candidate for Senate is planning to be with us on Friday to walk the show as is Linda McMahon, the Republican candidate for Senate. This is a great opportunity for them to learn about minority business development in the state and in the region. | | | |
| | | Tom Davis (Cartus) and Tom Blount to be Honored as Shining Stars | | | The GNEMSDC is proud to present the 2010 Shining Stars, Tom Davis, Vice President at Cartus and Tom Blount, of Blount Printing. . |
Mr. Davis has been a long time director and key volunteer and Co-Chair for the GNEMSDC Annual Awards Banquet and serves on many other committees including Certification, Nominations and the Executive Committee. Mr. Davis has gone far beyond what is expected of directors and serves with distinction and great respect of others and the Council Mr. Blount is also an active volunteer and is the owner of a certified MBE with the GNEMSDC. Mr. Blount volunteers on the Golf Committee, the Awards Committee and has donated his time, resources and expertise in the production of material for the GNEMSDC. We appreciate both Tom's valuable contributions. We also invite all previous Shining Star Alumni to join us in honoring the new inductees on Thursday, September 30 at the MGM Grand at Foxwoods.
| | And Finally, | |  I read recently that it takes businesses on average five calls on a potential client before they make a sale, and that each call cost on average about $450. These client acquisition costs are substantial, and keep in mind we are talking about averages. I suspect from talking with MBEs and corporate members, that it is taking MBEs more calls on corporate clients and costing them at least as much per call for a number of reasons, which I will save for another article. If you think about this cost in light of the event we have planned at the end of this month, MBEs and corporate members are getting a tremendous bargain. I have also done some research on the cost of trade shows. Industry trade shows are very expensive affairs, often costing thousands of dollars just to register to walk the show, not to mention exhibit, eat, drink and advertise. Our show is priced in a way that loses money on each participant. Sounds crazy. It is except that we want, we need, corporations to support this event by their generous sponsorships and more importantly by their active participation. We also want this event to remain affordable for MBEs. So our pricing structure guarantees we cannot make it up on volume,. but our goal is creating relationships for MBEs and corporations, not profits. So for those who have not signed up for this event, think about the alternatives. How many corporate members are you planning to meet if you do not come to the show over those three day? How much information about growing your business do you plan to acquire over those three days if you do not attend the show. Everyone talks about ROI this and ROI that; well I can guarantee you that you will be hard pressed to earn a higher ROI on your time compared to that earned by attending our show. I hope to see you there! In your service Dr. Fred | | | |
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