Stripping Missouri’s supplier diversity goals stifles state’s prosperity potential, says women’s business advocate

Ending nearly a decade of benchmarks that helped ensure greater equity in state contracts for businesses owned by minorities and women is a move in the wrong direction for Missouri, said Jennifer Brungardt, emphasizing the coming impact of lost opportunities for underrepresented entrepreneurs.

Gov. Mike Parson, R-Missouri, speaks at Union Station in Kansas City, March 2024; photo by Nikki Overfelt Chifalu, Startland News

“Diversity and economic growth will be stifled without proper support from our legislative authorities,” said Brungardt, associate director at the Kansas City office of the Women’s Business Development Center. “It is crucial for the development of diverse business owners — in both Kansas City and the state as a whole — that there is continued advocation for them. Rescinding the hiring goals is a step backward, not forward.”

Gov. Mike Parson, R-Missouri, earlier this month quietly rescinded 177 executive orders that he said no longer fit the needs of the Show-Me State “in an effort to leave state government better than he found it.”

“Since the very beginning, we have always looked to cut red tape, streamline bureaucracy, and reduce the size of government where possible,” said Parson. “This action today helps untangle a web of unnecessary and contradicting executive orders that no longer serve their intended purposes, ensuring more efficient and effective operations across state government.”

Among those executive orders: 15-06, a Gov. Jay Nixon-era measure from 2015 that set goals for state agencies to procure 10 percent of goods and services from both Minority and Women Business Enterprises (M/WBEs) to enhance their economic health and priority.

Information from the governor’s office did not offer detailed specifics for why 15-06 was rescinded, although Parson’s announcement broadly cited “legal concerns, given recent court rulings.”

The reference likely alludes to legal decisions that either banned or called into question the use of race as a factor in college admissions or investment decisions.

Regional groups like KCRising and the Greater Kansas City Chamber of Commerce have heralded supplier diversity as a key strategy in modern economic development.

RELATED: KC Chamber, businesses: We won’t back down from DEI initiatives

A spokesperson for the governor, Johnathan Shiflett, told Newsweek that the state is still obligated to develop a workforce that “reflects the diversity of Missouri citizens.”

Funds allotted to Missouri through the State Small Business Credit Initiative (SSBCI) as part of the Biden Administration’s American Rescue Plan, for example, include dictates to “help reduce barriers to capital access for traditionally underserved communities.”

A statement issued from the Women’s Business Development Center said Parson’s decision to rescind Missouri’s benchmarks undermine the state’s progress toward building a diverse talent pipeline and could hinder economic growth.

“In today’s rapidly evolving corporate landscape, DEI is more than just a rubber stamp; it is a vital component for success,” the WBDC said. “Yet, despite the increasing acknowledgment of DEI’s importance, many organizations — and now state agencies — continue to fall short in fully supporting these programs.”

“Genuine support for DEI initiatives is crucial for fostering an inclusive business environment, attracting top talent, and driving innovation — having been proven time and again that diversity is good for business,” the statement continued. “Now more than ever, we must advocate for policies that reinforce commitment to diversity and inclusion in our economy, rather than rescinding the progress that has been made over the years.”