Why it Matters 

Strategically diversifying suppliers to include more minority and women owned businesses is growing increasingly important as a way for businesses, and even the State of Georgia, to effectively address some of the current supply chain challenges. Working with minority suppliers widens the pool of potential supply bases, which hedges risk and increases a business’ agility and adaptability. This is especially important in Georgia because our state has the 7th highest percentage of minority-owned startups and a significant number of other minority-owned businesses.

The Research
A minority supplier, also known as a diverse supplier, is a business that is 51 percent or more owned and operated by a traditionally underrepresented group.* This can encompass businesses including women and minority-owned and operated, LGBTQ+, and veteran or disability owned and operated groups. Due to the historically small size of minority suppliers, they are generally able to adapt more quickly to market changes and business fluctuations which in turn benefit the businesses they supply.  

Diversity in the supply chain also allows for greater market freedom which produces greater product diversity and innovation.** The Hackett Group’s Supplier Diversity Study found that companies who dedicate 20 percent or more of their spending to partnering with diverse suppliers can attribute as much as 15 percent of their annual sales to these supplier diversity programs.

Why it Matters to your Business 
Strategically incorporating minority suppliers into the supply chain has been proven to increase profit, business adaptability, and increase innovation ethically and efficiently.**

What Georgia Can Do 

• Support Governor Kemp’s efforts at the Department of Administrative Services through the newly created Director of Supplier Diversity. Click here to read the announcement.

• Support the work of the Georgia Minority Supplier Development Council (GMSDC) which provides business development programs that target local business growth in traditionally underserved communities. Most recently their Community Business Development Program*** provided training to local business that may be too small to significantly supply globally.  

What You Can Do

• Evaluate your business’ supply chain profile for diversity and inclusion to determine where minority suppliers may be beneficial to incorporate into your business model.  

• Seek out small, diverse suppliers that need support to become certified and meet supplier standards.

The Big Picture 
The future workforce generations will be the most diverse in U.S. history. To mitigate supply chain threats and support our homegrown entrepreneurs, it is vital that minority-owned businesses be incorporated into the supply chain. Our state’s economic success will be the strongest when business ownership is representative of our population, ensuring opportunity for the best products, services, and ideas to thrive.