MBEs Resilient During COVID

Tanya Isley
Closeup of calculator and data chart
Photo by Pixabay

New study reveals minority-owned suppliers show greater financial stability, resiliency than non-minority owned businesses.

Minority suppliers are in a healthier financial position and are more resilient than their non-minority supplier counterparts, according to a new predictive analytic modeling study conducted by Rebirth Analytics and the Northwest Mountain Minority Supplier Development Council (NWMMSDC).

An analysis of over 300 privately held minority suppliers across seven states, representing over $8.1 billion in gross revenue revealed that minority suppliers are outperforming both their publicly traded and privately held counterparts. The study, which compared private companies to their industry peers leveraging financial information from corporate balance sheets and financial statements, focused on 12 industries, including manufacturing, technology, mining, professional and scientific services, among others. 

“Financial health metrics are the best indicators of how a supplier will perform through disruptive market events, like the COVID-19 pandemic, and our study reveals that minority-owned businesses are displaying extremely high levels of resiliency through the crisis, and should emerge in a stable position post-crisis,” says Chonchol Gupta, CEO of Rebirth Analytics. 

Despite the perception that minority suppliers are unstable through changing economic conditions, the findings offer a stark reminder that minority businesses are operating with resiliency and can continue to be relied upon by the large enterprises they service.

“In terms of revenue growth, minority suppliers in 10 out of the 12 industries we analyzed outperformed their non-minority privately-held peers, as well as their publicly-traded peers in three sectors – manufacturing, construction, and technology,” says Gupta. “From what I have seen, every time the economies go bad or any time markets go bad, everybody assumes minority companies are going to be in a worse position than non-minority counterparts. We’re finally seeing that that isn’t necessarily always the case. Minority companies can be stronger and more resilient than their non-minority peers. This study has opened people’s eyes and really proves that.” 

Gupta is hopeful that the study’s findings will encourage major corporations to invest in and partner with minority suppliers.

“[Often], in adverse market conditions, minority suppliers would be the first ones that they worry about,” he explains. “I want to see large enterprises engage more with minority suppliers and understand and know that minority suppliers are strong and resilient and have the ability to help their companies carry on successfully through the pandemic. I would like to see enterprises that don’t have a focus on minority suppliers, look at the study and say, this is something that we should look into adding in our procurement and supply chain. That we should look at adding a focus on minority businesses in our purchasing. I think that this is the perfect opportunity for large enterprises to either engage deeper with minority suppliers, engage for the first time with minority suppliers. This will show them in an even stronger light.”

Rebirth Analytics and NWMMSDC are enthusiastic about the initial findings and have commissioned additional analysis to layer other elements such as credit scoring, access to capital, and large enterprise employment of minority suppliers into the study. 

For more information and to obtain a copy of the initial findings, contact




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