After ensuring American’s health, economic recovery will be next on the to-do list. Access to financing will play a huge role but so, too, will access to customers and vendors. Having customers who spend billions on goods and services, such as the Fortune 1000 companies, increases your chances for high growth.
It is a mutually beneficial relationship between small and big businesses. Large corporations buy the goods and services from 1.1 million small supplier businesses*, many of which are owned by minorities, women, LGBTQ+, individuals with disabilities, and veterans. These diverse businesses are what Hello Alice calls the “New Majority.” Alice is a predictive technology platform that helps you find the answers, resources, and support you need. It has a COVID19 Business Resource Center and is providing emergency $10,000 grants to businesses with less than 50 employees.
The benefits to the Fortune 1000 are that diverse small businesses:
- Produce innovative products/services for them to use or sell.
- Increase competition, resulting in better prices and service levels.
- Enable them to serve emerging and untapped markets.
- Purchase their products and services.
- Are acquisition candidates.
- Highlight their commitment to diversity and inclusion, and a shared and durable prosperity.
- Help them be flexible, agile, and resilient.
Many large corporations have supplier programs. Importantly, these programs could play an even greater role in the recovery of the U.S. economy. Until recently, to document the impact these programs have, supplier diversity departments relied on counting the awards they received, how much their spend increased. Some even tracked the positive impact these programs had on small and diverse businesses. Others used economic impact studies, which measure changes in business revenue and jobs creation of supplier-diversity programs.
Last year, Stefanie Francis, founder of Hootology, developed a tracking survey so corporations could measure the impact of their programs on the corporate bottom line. Hootology is a research company that helps its clients develop actionable tactics based on its research. It recently released results to its clients for the second Supplier Diversity Impact Indicator (SDII).