Small businesses, especially minority-owned small businesses, are well placed to lead the U.S. in economic growth in the coming years. The combination of a growing minority population and the number of government-sponsored small business assistance programs makes now a great time to be a minority-owned small business.
In fact, with increased spending power in minority communities and the prevalence of supplier diversity and socio-economic programs, companies that are poised to take advantage can do quite well for themselves.
What is Supplier Diversity?
Supplier diversity refers to business practices that advocate using a more diverse set of suppliers, especially those suppliers who may have had a disadvantage, such as minority-owned businesses and women-owned businesses.
From the U.S, government’s standpoint, supplier diversity is imperative. The federal government has instituted programs to ensure that assist minority-owned, women-owned and other disadvantaged small businesses face a more level playing field when competing against bigger suppliers. Without supplier diversity programs, small businesses, especially those owned by minorities, would face a seemingly insurmountable hurdle when competing against larger corporations.
The Federal Government offers Several Programs Aimed at this Group:
The Small Business Administration’s 8(a) Business Development Program provides many benefits, including contractual assistance.
The WOSB (women-owned small business) program also provides many benefits, one of which is the fact that certain federal contracts can be set aside specifically to be awarded to this group.
The Service-Disabled Veteran-Owned Small Business Concern Procurement Program allows procuring agencies to set aside acquisitions just for this group.
These types of supplier diversity programs change the game entirely. With these programs in place, small businesses, minority-owned businesses and other disadvantaged businesses can actually compete. The U.S. government ensures the success of these programs by spending billions of dollars every year on federal contracts that are awarded directly through the programs.
We can help your firm get a piece of that pie if you qualify. Contact us today to see if your business might meet the criteria for certification in one or more of these programs.
Why Should You Care About Supplier Diversity?
If you’re not convinced yet, just take a look at the stats: The U.S. population has been steadily becoming more diverse. Minority populations continue to grow faster than the rest of the population.
According to the U.S. Department of Labor, over the past 10 years, minority-owned businesses have grown at approximately double the rate of all firms in the U.S. economy.
According to the U.S. Minority Business Development Agency (MBDA) as of 2015, there were around 7 million minority-owned firms in the U.S.
These statistics show us how large the minority population is, both in terms of size and business influence. Supplier diversity programs and the accompanying government programs designed to assist disadvantaged businesses represent a strategic business opportunity for minority-owned businesses. Getting certified in one or more of these programs is the first step, but following through by delivering great value is what will keep your business in the game long-term.
We can help you become certified as a diverse supplier. Rafael Marrero & Company is a nationally certified Minority Business Enterprise (MBE) that specializes in small business management solutions to empower our clients. We offer proven supplier diversity and B2G best practices to take your company to the next level.
Contact us today!
Our B2G and Supplier Diversity professionals can help minority (MBE), women (WBE), small businesses, 8(a), service disabled veteran-owned (SDVOSB) and other disadvantaged business enterprise (DBE) firms become strategic suppliers in federal and private sectors. We can also help you determine which market segment or supply chain areas are the most appropriate choices for your business. Our B2G and Supplier Diversity professionals are well-versed in advanced marketing services aimed at the federal level and can discuss future growth and capacity planning.
Call toll free 1-888-595-6221 for a free consultation or email firstname.lastname@example.org.