Chapter 11: Inclusion of Disability-Owned Businesses Into Federal, State, and Private Sector Supplier Diversity Initiatives

Facilitating the growth of disability-owned businesses is critical for fully including people with disabilities in the evolving economic system. Supplier diversity programs are initiatives originally designed to support business development among racially marginalized populations by encouraging large organizations and government entities to contract with diverse suppliers and helping them compete against established companies. Over time, supplier diversity programs have expanded to include other disadvantaged groups. Using publicly available information and interviews with 20 stakeholders and experts, this study examines the inclusion of disability-owned businesses in federal, state, and private sector supplier diversity initiatives. Our findings indicate that: (1) Disability remains excluded from federal supplier diversity programs. (2) State-level disability inclusion in these programs is inconsistent. (3) Private sector efforts to include disability-owned businesses have increased, but growth is constrained by the limited number of certified businesses capable of handling large contracts. (4) Systematic tracking of disability-owned business procurement spending is rare among states and private companies. Addressing these challenges requires policymakers to establish dedicated set-asides, revise eligibility criteria, and improve data collection. Extending federal contracting opportunities to people with disabilities could increase certified disability-owned businesses. While government agencies offer support for the bidding process, the complex and time-consuming certification procedures remain burdensome for small businesses, highlighting the need for streamlined processes and more comprehensive assistance. Both public and private sectors must evolve strategies, simplify procedures, and foster partnerships to unlock the full potential of diverse suppliers like disability-owned businesses.