COVID-19 has had a devastating impact on many small businesses, but Black-owned businesses have
been hit hardest of all. The Federal Reserve Bank of New York reported that, in the early days of the pandemic, closure rates of Black
businesses declined by 41% – more than any other racial, ethnic, or minority cohort. Lack of equal
access to economic opportunities for minorities existed long before COVID-19, but the pandemic
exacerbated systemic inequities.
Closing legacy economic inequality gaps can add trillions to U.S. GDP, according to a Citi GPS report. Further, a McKinsey & Co. study supports the nexus between better corporate
financial performance and DEI initiatives. Similarly, a PwC survey of corporate directors reflects the growing body of research
that diversity in management and leadership enhances profitability.
Social imperatives and the business case to expand MWBE opportunities in the real estate sector
drove the CREDS associations to conduct further analysis. Their research revealed that some of the
associations, and the members they represent, were pursuing DEI strategies to diversify their
C-suites, boards, pipelines for employee talent, and internship and educational platforms. A
number of real estate companies said they would benefit from further guidance on how to diversify
their supply chains.
The respective leadership teams of the CREDS associations saw an opportunity to embark on a
unique, industry-wide initiative that would benefit both “buying” real estate companies and
“supplying” MWBE businesses to progress toward mutual economic, ESG, and DEI goals. These
associations united as the CREDS Consortium and have each signed agreements with SupplierGATEWAY
to collaborate on the 2-year pilot program.