Invest in supplier diversity and see your employee engagement and market share grow.
Supplier diversity is the process of incorporating and working with small business owners who come from diverse backgrounds into your supply chain. This helps to ensure the inclusion of diverse groups in both the private and public sector.
These diverse groups of owners can include:
- LGBTQ
- Veterans
- Women
- Minorities
- And more
Small businesses can even apply for different certifications at the city, state, and federal level. There are also diversity certifications offered through Disability: IN, the National LGBT Chamber of Commerce, and other institutions.
Everyone tends to use the term "supplier diversity" in business, but do you know why it matters or why your business needs to make the investment? By including diversity in your supply chain, you can ensure you’re doing your part to promote inclusivity and drive a competitive advantage in the marketplace.
Why is Supplier Diversity Important?
There are a few different reasons why incorporating diverse suppliers is so important.
- Small business owners, especially those of a diverse background, already face large barriers and by giving them your business you will help support their growth.
- Small businesses employ nearly 50% of American workers. By working with them you are indirectly helping create jobs and boosting the economy.
- While it's the right thing to do, companies have found that making the investment in diversity has also led to higher profits, increased market share, and more engaged and loyal employees.