Supplier Diversity programs aren't just socially responsible – they're good business for corporations, government agencies, primes and underutilized businesses. Supplier Diversity Programs provides a means for corporations and government agencies to foster economic growth within the minority business community and bring more minority and women entrepreneurs into the mainstream American free enterprise system.

Supplier Diversity is a business program that encourages the use of previously underutilized vendors as suppliers. It is not directly correlated with supply chain diversification, although utilizing more vendors may enhance supply chain diversification.

Minority and women-owned business enterprises are among the fastest-growing segments of the U.S. economy. Minority-owned businesses generate an estimated $495 billion in annual revenue and employ nearly 4 million workers, while women-owned firms employ about 19 million people and generate $2.5 trillion in annual sales.

Veteran-Owned and Service Disabled Veteran-Owned Businesses are some of the most prominent group on the American entrepreneurial landscape and being sought after by corporate supplier diversity directors. There are over 25 million veterans in this country or roughly 1 in 5 adult males. It is estimated that 1 in 7 small businesses are owned by a veteran.

However, despite the growing numbers these businesses still remain underutilized. Supplier Diversity programs center around helping underutilized businesses reach larger suppliers and vendors by providing them contract opportunities.