The Untapped Potential of Supplier Diversity in Türkiye
Supplier diversity is a global strategy and a powerful addition to the private sector’s community impact toolbox worldwide. Economic equality and sustainable, inclusive growth are only possible through job creation, and creating jobs for the most underserved communities requires greater opportunities for a diverse group of entrepreneurs.
According to the World Bank, small and medium-sized enterprises (SMEs) account for 90 percent of businesses and more than 50 percent of employment worldwide. The inclusion of local small businesses in value chains unleashes their power to create much needed jobs and eradicate poverty. This is why Building Markets has been working with local SMEs and facilitating their growth and integration in supply chains since 2004. Building Markets’ “buy local” strategy, aimed at creating economic opportunities for local SMEs in a dozen diverse markets, led to $1.35bn contracts and over 70,700 jobs. Pursuing supplier diversity, i.e., expanding local vendor pools with companies owned by women, minorities, refugees, and other underserved and underutilized entrepreneurs, has the potential to make the resulting economic development dividends more equitable.
Building Markets has a long-standing program to support local SMEs in Türkiye, primarily Syrian-owned companies, to promote job creation for refugees and host communities. This work leads us to conclude that Türkiye presents a case for the untapped socioeconomic potential of supplier diversity practices of local and international businesses. This research brief outlines the benefits and challenges of supplier diversity, especially when practiced in new markets outside of the United States; explores the potential for supplier diversity in Türkiye, including for impact on refugees, and how Building Markets’ network of SMEs in the country and its services can support such programs; and makes recommendations.