A new report highlights over $122 billion spent on small suppliers in the US in 2025, driving significant economic growth and job creation, while identifying opportunities to better harness their strategic value.
Supplier.io, a supplier intelligence solutions provider, has released its 2025 Small Business Impact Report highlighting the significant economic contributions made by small and local suppliers in the United States. According to the report, more than 500 organi...
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sations collectively spent $122.7 billion on small businesses, generating an estimated $202.7 billion in economic output and supporting over 828,000 jobs nationwide. The company said this spending demonstrates the positive ripple effects that small business sourcing has on broader economic growth and job creation.
The report recognises 17 companies, including HP Inc., FanDuel, and Regions Bank, as 2025 Small Business Champions for their ongoing investment in small business partnerships. These companies, the report states, contributed to over $66 billion in income earned and $23 billion in tax revenue generated across the US economy. Every dollar spent with small or local suppliers reportedly generated $1.65 in broader economic value.
Neeraj Shah, Founder and CEO of Supplier.io, emphasised that collaboration between large enterprises and small businesses leads to stronger supply chains and greater agility. “Small and local expertise has become essential to building resilient, cost-effective supply chains in today’s volatile market,” he said. Tiffany Lovelace, Senior Vice President and Head of Local Sourcing at Regions Bank, explained that local sourcing is viewed not merely as a procurement strategy but as an engine for economic prosperity in their communities.
The report identifies key industries driving small business sourcing growth, with professional, scientific, and technical services; construction; and administrative and support services leading in job creation. Wholesale trade was noted as the sector with the highest overall spend. Geographically, California, Texas, Pennsylvania, Illinois, and Florida accounted for the most economic impact, together supporting over 310,000 jobs and generating more than $70 billion in total output.
Supplier.io offers a database of over 11 million global supplier profiles enriched by more than 450 million data points, providing enterprises with visibility and analytics to scale small business partnerships. The company has also been recognised for consistent growth, recently securing a place on the 2025 Inc. 5000 list of America’s fastest-growing companies for the third consecutive year. Their CEO, Aylin Basom, credits this to innovation and customer trust.
Despite the growing recognition of small suppliers’ importance, Supplier.io’s research highlights a gap between intent and execution. Many enterprises acknowledge the benefits of partnering with small businesses but lack adequate systems and intelligence to fully capitalise on these partnerships, leaving economic potential untapped.
Supplier.io’s reports contribute to a broader understanding of the evolving landscape of supplier diversity and the strategic value of small business engagement in strengthening supply chains. However, independent analyses might seek to examine how these relationships impact pricing, supply chain risk, and long-term sustainability beyond headline economic figures. As enterprises increasingly prioritise small and local sourcing, how effectively they operationalise these strategies will likely determine the magnitude of small business contributions to economic resilience and community development.
Source: Noah Wire Services
