The US corporate sector’s decision to abandon supplier diversity programs has disproportionately affected black female entrepreneurs. The move has led to a significant increase in loan rejection rates for these women, with some being rejected three times more often than their white counterparts.
European subsidiaries of US companies are also worried about the impact on their own supplier diversity initiatives. While some see this as an opportunity to “cut the leash” from US-driven programs and forge their own paths, others fear the consequences of abandoning these initiatives altogether.
The trend has raised concerns among experts who believe that diversity and inclusion programs play a crucial role in promoting economic growth and development, particularly for minority-owned businesses. As the global economy becomes increasingly interconnected, companies are being forced to reevaluate their strategies for supporting diverse suppliers.
The effects of this trend are far-reaching, with black women entrepreneurs facing significant barriers to accessing funding and other resources. To address these challenges, experts are advocating for more inclusive policies that prioritize diversity and inclusion in corporate supply chains.
Source: https://www.reuters.com/sustainability/society-equity/black-women-entrepreneurs-hit-hard-us-companies-axing-diversity-programs-2025-02-13