Supplier Diversity History and Definitions

Why was Supplier Diversity Created?

In order to “even-out” the playing fields in businesses the government organized benefits to corporations who utilized women and minority owned businesses.

The Evolution of Supplier Diversity:

Recognizing that race does matter, policy makers enacted mandates that supported contracting with minority owned businesses.  Small business initiatives began as early as 1953 when congress created the Small Business Administration (SBA).  The creation of the SBA was the federal government’s attempt to address the interests of small business.  The creation of the SBA was the stepping stone for passing and signing into law more than 25 bills affecting small, minority and women-owned business enterprises between 1968-1999.

The Small Business Act of 1958 requires that all government subcontractors place a fair portion of their business with small and small disadvantaged companies to allow maximum practicable opportunity for participation in contracts awarded by any executive agency.

Most federal, state and municipal entities have programs in force that have opened doors that may have remained closed.  Basically, Supplier Diversity programs have enabled minority businesses to grow exponentially in traditional areas of business.