Supplier diversity

A Supplier Diversity program is a proactive business program which encourages the use of minority-owned, women owned, veteran owned, LGBT-owned , service disabled veteran owned, historically underutilized business, and Small Business Administration (SBA)-defined small business concerns [1] as suppliers. It is not directly correlated with supply chain diversification, although utilizing more vendors may enhance supply chain diversification. Supplier diversity programs recognize that sourcing products and services from previously under-used suppliers helps to sustain and progressively transform a company's supply chain, thus quantitatively reflecting the demographics of the community in which it operates by recording transactions with diverse suppliers.

Diverse- and women-owned business enterprises are among the fastest-growing segments of the U.S. economy. Diverse-owned businesses generated an estimated $495 billion in annual revenue in 1997 [2] and employed nearly 4 million workers, while women-owned firms employed about 19 million people [3] and generated $2.5 trillion in annual sales.

Alongside the Women-Owned Small Business Program, the US Small Business Administration also operates an Economically Disadvantaged Women Owned Small Business (EDWOSBs) program for preferential award of federal contracts in certain industries.[4]

See also

References

  1. ↑ Small Business Administration, Small Business Size Regulations, accessed 31 March 2016
  2. ↑ http://www.sba.gov/advo/stats/min.pdf
  3. ↑ http://centreforwomensbusinessresearch.org/press/details.php?id=125
  4. ↑ Small Business Act, 15 USC 637(m)
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