The National Minority Supplier Diversity Council reports that certified minority-owned business enterprises (MBEs) generate $400 billion in economic output that leads to the creation or preservation of 2.2 million jobs and $49 billion in annual revenue for local, state, and federal tax authorities. Defined as businesses that are at least 51% owned and operated by an individual or group that is part of a traditionally underrepresented or underserved group, diverse suppliers have a higher annual retention rate than non-diverse suppliers. And, leaders in supplier diversity have more efficient procurement processes.
A 12-month program led by the Chattanooga Chamber’s Diversity, Equity and Inclusion team, the Procurement Pilot seeks to advance the business case for diversity and inclusion through strategic partnerships, mentoring, and technical assistance. By elevating the procurement class in Chattanooga, the pilot will advance regional mobility, prosperity, and economic inclusion.
The $150,000 pilot program is a partnership among a select group of corporate mentors, procurement contractors, and the Chamber.
- Monitor revenues for contractors participating in pilot to determine economic impact over 12 months
- Measure staff levels to determine growth of participating organizations
- Evaluate organizational capacity before, during, and after pilot to determine sustainability
The Chamber will:
- Perform corporate and procurement partner outreach
- Convene city and county procurement and DMEs officials
- Leverage INCubator to assist procurement partners to scale up
- Target resource dollars to implement and deliver pilot
- Develop MOU for corporate and procurement partners, and the Chamber
The Corporate Partner will:
- Commit to a 12-month partnership with the Chamber and procurement partner
- Commit to providing mentorship and a subcontract
- Commit to allowing the Chamber to collect data and information on the pilot through its organization (e.g. contract size, recommendations, and observations)
The Procurement Partner will:
- Commit to a 12-month partnership with the Chamber and the corporate partner
- Commit to receiving mentoring from a corporate or general contractor
- Commit to allowing the Chamber to collect data and information on the pilot through its organization (e.g. contract size, recommendations, and observations
CEO Pledge for Racial Equity
The societal cost of economic exclusion has come into sharp relief, in recent history. With a rapid racial and cultural transformation underway, America needs to wake up and value difference in a global community that is 71% of color. According to reports by the WK Kellogg Foundation, Morgan Stanley, and Citigroup, the economic cost of inequity to African Americans is reported to be about $2 trillion dollars per year. This directly impacts GDP, employment, lending, education, and health. A more inclusive and equitable economy makes the business case for the growth and the full participation of African Americans and other communities of color in Chattanooga and Hamilton County.
The Chamber’s CEO Pledge for Racial Equity is a commitment by CEOs to intentionally enhance their efforts to achieve equity of opportunity within organizations and the broader Chattanooga community. The pledge complements the Chattanooga Climbs goal to create an economically inclusive ecosystem, which acknowledges and eliminates racial and cultural bias. This is accomplished by dismantling policies that restrict access to capital, prevent wealth creation, promote incarceration, and limit training and education. We seek to create a diverse and inclusive Chattanooga that drives business development, influences regional competitiveness, and stimulates innovation.