Minority business enterprises (MBEs) – firms that must undergo certification processes by government agencies to establish their status – play a critical role in stimulating the American economy, as they generate $2 trillion in revenue each year. By further enhancing opportunities and closing gaps in equity, the economy is projected to experience an increase of $6.3 trillion from MBEs alone. According to the Minority Business Development Agency, MBEs represent 29% of all U.S. businesses. But despite the large share, 89% are sole proprietorships.
As the largest Black-owned professional services firm in the country and a certified MBE, Ichor Strategies is a management consulting firm like no other. Partnering with an MBE-certified consulting firm creates unique advantages other firms do not offer.
Advantages of Hiring an MBE-Certified Consulting Firm
Drive Business Growth
MBE consultants drive business growth through their deep understanding of underserved communities. Capturing these markets is crucial to every business’s success, as $1 out of every $5 of U.S. disposable income is projected to belong to Black, Asian, multiracial, and indigenous American consumers within the next few years. With established trust, MBE consultants can better identify and address the unique needs of these groups. Their understanding of cultural nuances offers a valuable perspective often missing from traditional consulting firms. This specialized knowledge is instrumental in crafting targeted strategies that resonate with diverse stakeholders.
By leveraging these insights and connections, businesses can effectively engage new consumers, expanding their market reach and unlocking new avenues for growth. A landmark study of over 100 global corporations found that firms with long-term supplier diversity programs achieved a 133% greater ROI than companies who continued to rely on traditional suppliers.
In many cases, government agencies prioritize working with minority business enterprises. By partnering with an MBE-certified firm, businesses favorably position themselves to secure these contracts, gaining access to lucrative opportunities that may have otherwise been inaccessible. These contracts provide immediate revenue streams and serve as gateways to broader networks and future projects.
Enhance Innovation and Productivity
The leadership at MBE firms like Ichor attracts highly dynamic, multicultural teams, creating environments that generate more comprehensive business approaches than peers. A recent study found that not only are MBEs 67% more likely to hire diverse talent than the average for U.S. companies but also more likely to hire diverse talent at the highest levels.
Diverse talent better challenges assumptions and produces more innovative solutions. A study from Forbes reveals that diverse teams deliver 60% better results and make better decisions in 87% of cases studied.
Align with Equity Goals
Many companies have incorporated diversity, equity, and inclusion (DEI) policies related to hiring and procurement. Furthermore, regulatory bodies and investors are increasingly spotlighting DEI practices, with entities like the Securities and Exchange Commission (SEC) considering rules that would require companies to disclose more about their board diversity. This regulatory shift, coupled with a growing consumer preference for socially responsible brands, makes DEI a critical factor in both strategy and reputation.
Working with an MBE consulting firm like Ichor demonstrates a commitment to these values and delivers a positive message to all stakeholders, including employees, consumers, and partners.
Improving Business Reputation
Hiring an MBE consulting firm not only differentiates organizations in a competitive marketplace but also enhances their appeal to a growing number of consumers. In a recent study, researchers found that a mere 1% increase in awareness of a brand’s efforts to diversify suppliers will lead to an additional 800,000 U.S. consumers using the brand’s products/services.
By aligning with MBEs, companies demonstrate a dedication to equity, which can significantly strengthen their public image. This commitment to support diverse businesses resonates well with consumers who prioritize equity in purchasing decisions.
The Ichor Edge
Partnering with an MBE like Ichor creates a strategic edge for companies looking to grow and innovate. Our depth and expertise are revolutionizing the performance of the Fortune 1000, national nonprofits, and state and local governments. With consultants from diverse backgrounds, including government, NGOs, the nonprofit world, and communications, Ichor’s comprehensive understanding of communities in more than 70 cities across the country offers insights that better mitigate risks, bridge gaps in trust, and inform targeted growth and development strategies.