Last year, the Association of Independent Colleges and Universities in Massachusetts (AICUM) published a report that examined the economic and social impact of its 59 college and university members on the Commonwealth. The focus of the report is on the economic activities of the institutions, their direct and indirect contributions to employment, and their engagement with local communities.
For instance, this chart shows the employment impact by sector of the operational expenditures of these institutions. Of many sectors, AICUM members contributed to employment in real estate (19%) and healthcare (16%), followed by retail (9%) and accommodation & food services (8%).
Here are a few takeaways from the AICUM Economic Impact Study:
- Significant Economic Contribution: The AICUM member institutions collectively contribute significantly to the Massachusetts economy. The report estimates an aggregate annual statewide economic impact of $71.1 billion, supporting over 320,000 jobs and generating $2.4 billion in state tax revenues annually.
- Considerable Spillover Effects: Beyond direct expenditures, these institutions have considerable spillover effects throughout the statewide supply chain. This includes not only spending by the institutions themselves, but also additional economic activity generated by student living expenditures and visitors, as well as increased earning potential of alumni.
- Community Development through Service Learning and Industrial Partnership: Many of these institutions are deeply integrated into their local communities, providing thousands of hours of volunteer service and contributing to economic competitiveness and workforce development. Their academic programs foster connections between students and local industries.
As the AICUM Economic Impact Study shows, colleges and universities are uniquely positioned to influence local and regional economies. While the study does not explicitly address the role of diverse small businesses in the higher education marketplace, the case for increasing supplier diversity is compelling. Spending with smaller, diverse suppliers has a multiplier effect since these businesses are more likely to co-develop with marginalized communities and hire locally. Increasing the pool of suppliers can also foster product and service innovation and encourage competition. All of this contributes to economic sustainability.
There are certainly barriers to the entry of diverse small businesses into the higher education market; the Lab’s report Promoting Supplier Diversity in Higher Education: Barriers and Opportunities makes that clear. But, as our forthcoming research report Taking the Pulse of Procurement Professionals in Higher Education shows, the institutional commitment to supplier diversity is strong. In partnership with many other organizations, the Lab is identifying practical ways to build bridges between HEI buyers and diverse small businesses.
You can access the AICUM Economic Impact Study by clicking here. https://aicum.org/economic-impact/
