Federal Government Commits to Increasing Supplier Diversity
As entrepreneurs seek to expand their businesses, supply chain management can become crucial in ensuring all necessary products are available when needed. Relying on a limited number of sources for the materials you need to run your business can lead to problems when blockages or delays occur - the pandemic saw 27% of AAPI business owners suffer from supply chain disruptions. The diversification of your supply chain can be an advantage to your business, and can help support other AAPI small businesses. A diverse supplier can be classified as any business that is 51% or more owned by an individual from an underrepresented or underserved community. This includes minority-owned business enterprises (MBEs) and woman-owned business enterprises (WBEs). Engaging with a number of diverse suppliers not only bolsters the AAPI small business community, it also allows greater flexibility with supply chains, minimizing the fear of disruption.
Beyond seeking a diverse supply chain for your own business, you can become a part of expanding supply chain diversity for other entities, including the government. The General Services Administration (GSA) contracts businesses to supply different types of services to the federal government. This could be anything from construction to landscaping to janitorial services. In 2022, the GSA committed 33% of its yearly funding to small businesses and 21.9% to businesses owned by Socially and Economically Disadvantaged Individuals, which means there are ample opportunities for AAPI small businesses to receive contracts. In 2022, nearly $1.5 billion went to contracts with SEDI businesses and $145 million to woman owned businesses.
Another great help to the further diversifying of supply chains came through the Bipartisan Infrastructure Law. This act asserted the goal to increase the amount of federal contracts to small, disadvantaged businesses, aiming at 15% by 2025 - meaning billions more for small business owners.
Seek out how your business might be able to secure a contract with the government and take advantage of this available funding. Becoming a part of diversity within the supply chain will help strengthen your entrepreneurial goals and the AAPI business community as a whole.
