Skip to main content

Diversity vs minority owned; what's the difference?


A question that comes up frequently is, “What's the difference between diversity versus minority owned business?”  

In the United States, minorities are African-American or Blacks, Mexican-Americans, Indian-Americans, Asian-Americans, Native Americans. In other countries, such as South Africa, it means something slightly different. In Australia, New Zealand, it means something different. In Canada, it means something different. 

In general, minorities, as a group, are country-specific and are considered to be underserved when compared to the majority. 

Originally women were lumped in with this group, which confused many people. They were eventually classified as a specific group so people understood women were a minority group. To avoid confusion, we identified women as Women Business Enterprises to distinguish this group from Minority Business Enterprises. You've probably heard of acronyms such as MBE/WBE or M/WBE to indicate these two distinct groups.

As we've evolved, we've moved away from MBE and WBE and have transitioned to diverse and or disadvantaged business enterprises (DBE). This transition allows the expansion to include other groups. Diverse now includes LGBTQ, veterans and the disabled as well as women and minorities. Of course, as you go from one country to another country, diverse may have different groups included, but clearly the intention is to create business opportunities for companies that have been underrepresented and underutilized in the corporate purchasing contracts. 

And this all makes sense right?

Here's where it gets crazy, businesses that have a widespread of diversity both within their organization AND as business partners always perform better.

Here's a practical example of how a corporation sees diversity.

Let's begin with a large city: London. Let's say that within London, only 15% of your business partners fall within the diversity category and 75% of your customers fall within the diversity category. This means only 15% of your resources represents what 75% of your clientele want. 

Does that sound like an efficient strategy?

I'll tell you- it's not. (and if it does sound efficient to you, you may want to rethink pursuing a corporate contract).

This is exactly why corporations are looking for diversely owned business owners (like yourself) to create strategic alliances.

Comments

Lena Charles said…
Transition management is the process of migrating knowledge, systems, and operating capabilities between an outsourcing environment to an in-house staff. Management de transition

Popular posts from this blog

The #1 Rule to Landing a Corporate Contract

My entire professional career was based around designing, negotiating, implementing and managing strategic alliances.

I did this from all three sides of the table:  as buyer, seller and minority business owner.  

I started my career doing research for Shell Oil Company and eventually moved up to supply chain management work. Here I negotiated strategic alliances with some of the largest suppliers in the world. 

You see, in the world of corporate, strategic alliances are tightly integrated relationships where resources are invested by both companies. The partnership allows for both businesses to prosper - clearly, a key component of the revenue driver, cost drivers or profitability.   In 2004, I decided to leave my corporate career and start my own company. I decided I was going to approach a friend of mine, who happened to be a supplier diversity manager, about doing a contract with her company (mind you, this company is and was one of the top five largest oil and gas companies in the wor…

Getting Business in Person

Today, we're going to discuss the secret to getting business at conferences, expos, meet-and-greets, any place where you are at forums where you get a chance to interact with representatives from corporations for some of the largest companies.
          How many of you can identify with going to these events, walking up and down the hallways in these big convention centers, being excited about being able to get your product out there and let folks know about your wares? And you end up leaving and reflecting back on the day and saying, "Well, I got the website from 20 other companies, and I can fill out the supplier database, put my information in their supplier database, and when there's an opportunity, they'll reach out to me because I made such a connection with them."
          Or they took your business card and said, "We'll have somebody follow up with you." Or you got the business card of everybody at the booth saying, "Hey, I just need …

Now is the Time for Diverse Busines Owners

What is a relevant event going on today that relates to what we do? Did you notice where there was an article that said 175 of the United States' top CEOs are committed to a pledge promoting more diversity and inclusion in their organizations? Did you see where congress is now considering trying to bring in two, three, four billion dollars of money, part off-shore, back into the United States? 
Did you pay attention to the current hiring that's going on in the United States? Are you noticing just the amount of pressure that is going on about how corporate spending is not current or related to the community that they serve? Or that the amount of money, their customer base, the communities that they operate in - meaning that 90% of the dollars that they spend with their suppliers is with companies that don't look like the markets that the companies serve or the customers that buy from them? 
There are several different processes going on that just make it clearer and clearer e…