March 26, 2024
This is a summary article of the Utah Business Magazine. You can read the full article here.
Supplier diversity introduced new legislation and economic opportunities for minorities in the 1960s. President Richard Nixon signed Executive Order No. 115 in 1969. He created the Office of Minority Business Enterprise, now known as the Minority Business Development Agency (MBDA), which promoted the growth and competitiveness of minority-owned businesses.
The expansion of the MBDA in 1971 created the National Minority Supplier Development Council (NMSDC), which has a vast network that supports and facilitates the integration of minority-owned businesses, such as ethnic minorities, women, veterans, LGBTQ+ individuals, and people with disabilities into corporate and public sector supply chains.
Implementing a supplier diversity program contributes to social responsibility, brings economic benefits, fosters innovation, and enhances a company’s overall competitiveness. It reflects a commitment to creating a more inclusive and equitable business environment.
Zions Bancorporation has always been known as a bank for small businesses and has strongly supported diverse small businesses. During the U.S. Small Business Administration’s 2021 fiscal year, Zions Bancorporation ranked number 22 in the nation in SBA 7(a) loan approvals, and 32% of SBA 7(a) loans approved by the bank during the period were made to women-owned businesses and entrepreneurs of color.
Utah can benefit from more companies that have supplier diversity strategies or programs in a few ways:
- Economic Growth
Supplier diversity programs can stimulate economic growth by providing opportunities for a broader range of businesses to participate in procurement processes, leading to job creation, increased tax revenue, and economic development.
- Innovation and Competition
Diverse suppliers often bring unique perspectives, ideas, and innovations. By including a variety of suppliers, corporations can foster competition and encourage the development of creative solutions, which can lead to improved services and cost efficiencies.
- Enhanced Reputation
As diverse businesses grow and their successes become more visible, Utah’s inclusive and socially responsible reputation is enhanced. This positive image can attract more corporations, talent, and investments, contributing to the overall attractiveness of the state as a place to live and do business.