Certification in Supplier Diversity Practice Exam

Which organization certifies small disadvantaged businesses?

1. The ISO

2. The Small Business Administration (SBA)

3. The Department of Commerce

4. The Federal Reserve

The correct answer is: The Small Business Administration (SBA)

The Small Business Administration (SBA) is the correct organization responsible for certifying small disadvantaged businesses. This certification is a part of the SBA’s efforts to promote diversity and inclusion within federal contracting and procurement processes. The SBA manages the 8(a) Business Development Program, which is specifically designed to assist small disadvantaged businesses in gaining access to federal contracts and other resources. By certifying these businesses, the SBA helps to level the playing field and foster competition, thus enabling these companies to thrive in markets often dominated by larger firms. Organizations like the ISO focus on international standards and quality management, while the Department of Commerce deals with a broader range of issues without specializing in the certification of disadvantaged businesses. The Federal Reserve primarily oversees the country’s monetary policy and does not engage in business certifications. Therefore, the SBA’s specific role in certifying small disadvantaged businesses clearly establishes its importance in the realm of supplier diversity.