Supplier diversity and small business inclusion in the UK amid global trade shifts

Embracing Inclusion in a Transforming Trade Landscape 

In today’s rapidly evolving trade environment, supplier diversity and the inclusion of small businesses have become essential for the resilience and growth of UK supply chains. Companies are moving beyond viewing supplier diversity as a compliance measure or corporate social responsibility initiative—it is now a strategic advantage. With mounting pressure from consumers, investors, and employees to demonstrate tangible ethical and inclusive practices, UK organisations are beginning to recognise that partnering with small businesses and diverse suppliers is fundamental to driving innovation, agility, and long-term performance. 

The State of Supplier Diversity and Small Businesses in the UK 

The supplier diversity movement in the UK has gained significant traction over the last decade, but the momentum has recently shifted towards integrating more small business suppliers. According to Procurement Tactics, companies that implement supplier diversity programs see a 133% greater return on their procurement investments. Additionally, those that actively prioritise diversity in sourcing operations report up to 20% lower overall procurement costs. These statistics reflect the growing understanding that inclusion—particularly of SMEs and underrepresented suppliers—is beneficial for both efficiency and performance. 

Fair Play Talks further reports that by 2025, the top quartile of companies focused on supplier diversity plan to increase their spend with diverse suppliers by 54%, compared to just a 20% increase by average companies. This not only reflects a rise in inclusive procurement but also a shift in how supplier relationships are formed—placing value on diversity, innovation, and community investment. With over 5.5 million small businesses forming 99.9% of the UK business population and employing over 16 million people, failing to engage them in procurement pipelines is a missed economic opportunity. 

How U.S. Trade Policy is Impacting UK Suppliers 

Trade tensions have further complicated the procurement landscape. Under the Trump administration and continuing into the current era, the U.S. imposed a series of tariffs impacting UK exports. Previously, UK suppliers enjoyed a relatively stable trading relationship with the United States, with an average tariff rate of only 3.4%. This enabled competitive pricing and steady export growth, particularly benefiting small businesses and suppliers from underrepresented backgrounds seeking access to U.S. markets. 

However, more recent developments have introduced a 10% baseline tariff on UK imports, with certain sectors like automotive facing tariffs as high as 25%. The impact has been significant. Jaguar Land Rover halted vehicle exports to the U.S. in response to the increased tariffs, reworking their supply strategies to avoid major losses. Similarly, smaller suppliers like Plant Parts—a UK construction parts supplier—experienced abrupt cancellations of U.S. orders, resulting in unsold inventory and forced redirection of their customer base. 

These disruptions affect the entire supplier ecosystem, but small and diverse suppliers are often hit hardest. Unlike larger firms, they lack the financial resilience to absorb sudden tariff increases or quickly reconfigure operations. As a result, they must now seek new avenues to access corporate clients—both locally and globally—through platforms like GoDiverse that make supplier discovery and inclusion seamless. 

Redefining Supplier Diversity in a Post-DEI Business Climate 

Recent shifts in global discourse around Diversity, Equity, and Inclusion (DEI)—especially in the U.S.—have begun to influence corporate language and strategy. Many large corporations, concerned about backlash or political scrutiny, are moving away from overt use of the term “diversity” in procurement messaging. Instead, they are rebranding their initiatives to emphasise “inclusive sourcing,” “ethical procurement,” and “small business engagement.” 

This semantic shift doesn’t diminish the value of supplier inclusion; rather, it reflects a broader commitment to economic fairness, local supplier growth, and ESG-aligned procurement. For UK suppliers—especially SMEs and businesses led by women, ethnic minorities, LGBTQ+ individuals, disabled people, or veterans—this means that the opportunity remains, but the language is changing. GoDiverse aligns with this evolution by positioning itself as a platform focused not just on diversity, but on helping all underrepresented and small businesses gain access to corporate opportunities. 

Why Supporting Small and Diverse Suppliers Makes Business Sense 

Incorporating small and diverse suppliers isn’t just a feel-good initiative—it offers tangible competitive advantages. Studies from McKinsey show that companies with ethnically and gender-diverse leadership are up to 35% more likely to outperform financially. Diverse suppliers, including small businesses, bring agility, niche specialisations, and innovative approaches that larger suppliers may not offer. They are often more responsive, collaborative, and invested in building long-term relationships. 

Supplier inclusion also enhances a company’s brand reputation, reflecting a commitment to ethical business and attracting values-driven consumers and top talent. It enables companies to tap into new markets and communities and ensures more localised supply chain resilience—especially critical during times of global disruption. Moreover, sourcing from small and diverse businesses aligns with emerging regulatory requirements and positions companies favourably for public contracts and ESG-linked investment. 

Strategies for Enhancing Supplier Inclusion in the UK 

To capitalise on the benefits of inclusive procurement, UK businesses should adopt a proactive, tech-enabled approach. Developing a supplier diversity and small business inclusion policy is a foundational step. This should include clear goals, measurable KPIs, and internal education to embed the strategy organisation-wide. 

Engaging with supplier networks—such as GoDiverse—enables companies to access pre-vetted diverse suppliers and SMEs without the cost and time burden of fragmented databases. Supporting suppliers with mentorship, training, and capacity-building also strengthens the supply chain from within, allowing small businesses to scale effectively and meet corporate procurement standards. 

Digital platforms play an essential role. GoDiverse’s Unified Database, for example, enables real-time supplier insights, industry filtering, and self-certification options, which empower suppliers while giving corporates access to meaningful data for reporting and decision-making. Lastly, supplier strategies should be revisited regularly. By adapting procurement frameworks to reflect economic changes, ESG expectations, and stakeholder demands, companies can ensure their supply chains remain competitive, compliant, and inclusive. 

Conclusion: Building Ethical, Inclusive, and Future-Ready Supply Chains 

As global trade dynamics shift and corporate language evolves, one truth remains clear: inclusive sourcing and supplier diversity are fundamental to building future-ready businesses. Whether it’s working with a woman-owned consultancy, an ethnic minority-run logistics provider, or a small social enterprise rooted in local communities, inclusive suppliers bring value beyond price—they bring perspective, passion, and innovation.

 For UK companies, this is a moment of opportunity. By leveraging platforms like GoDiverse, they can tap into the full potential of small and diverse suppliers while meeting sustainability and social impact goals. For suppliers, particularly small businesses and those from underrepresented backgrounds, now is the time to get discovered, grow your visibility, and become part of a more equitable supply chain. 

Inclusive procurement isn’t just about who you buy from—it’s about what kind of economy you want to build. Let’s build it together.