Supplier diversity, clarified.

A diverse supplier is a business primarily owned and operated by individuals from underrepresented groups, such as women, minorities, veterans, people with disabilities, and the LGBTQ+ community. Supplier diversity is a strategic approach to integrate these diverse-owned businesses into a company's supply chain, promoting economic inclusion.

Diverse suppliers foster competition and innovation, drive economic growth, create job opportunities, strengthen reputation, and support regulatory expectations. Incorporating diverse-owned businesses into supply chains leads to a more inclusive and resilient procurement environment.

Supplier diversity spend is the portion of a company's procurement budget allocated to goods and services from suppliers classified as diverse: typically at least 51% owned, operated, and controlled by individuals from traditionally underrepresented groups.

Organizations that allocate meaningful spend to diverse suppliers often report stronger market access and sales contribution from those programs. Diverse supply chains expand options, increase competition, support positive reputation, and demonstrate community engagement, especially as customer demographics diversify.

Some U.S. states encourage or require agencies to include minority-, women-, and/or veteran-owned businesses in procurement. The Small Business Administration also supports small and diverse businesses competing for government contracts. Private-sector programs follow buyer-specific policies rather than a single federal mandate.

Programs often require certification from a recognized state, regional, local, or national agency, plus demographic data on suppliers (gender, race, ethnicity, veteran status, and related classifications) for reporting.

Many programs require diverse suppliers to hold certification from an authorized agency at bid or award. Exact rules vary by buyer and jurisdiction.

Certification can unlock access to supplier diversity programs, new business opportunities, financing options, and networking. As enterprises raise diversity spend goals, certification is often the credential buyers require before awarding work.