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Buying from Women-Owned Businesses Builds Brand Equity, finds survey

Washington, DC June 28, 2007 – The Women’s Business Enterprise National Council (WBENC), the leading certifier of women-owned businesses that sell to corporations and large government organizations, and SB Services, a consulting firm focused on supplier diversity process improvement, announced today that they have established the elusive link between buying from women-owned businesses and generating sales.

In a survey of 1,227 women consumers between the ages of 35-55, an overwhelming 79% said knowing a company buys from women businesses would compel them to try a company’s product or services if they were not a current customer. Furthermore, 51% of respondents said a company’s support for women’s businesses is even worth a mulligan if the product or service misses the mark the first time. In addition, 81% said awareness of a company’s mission to buy from women’s businesses would moderately or significantly solidify their brand loyalty.

No one has ever researched the return on investment from supplier diversity, but when you connect the dots it’s easy to see the untapped opportunity,” said Linda Denny, Interim President of WBENC. “Corporations that have a history of buying from women businesses will have an instant competitive advantage with the most powerful purchasers in the marketplace today. Corporations that don’t have an opportunity to gain goodwill with women consumers.”

The first step for corporations to leverage their support of women’s businesses is to communicate it to the everyday consumer. According to the survey, 76% of women were not aware that some corporations made a concerted effort to buy from women’s businesses.

We found that many of the respondents were unaware of how far women still have to go to achieve parity with men,” said Sharon Castillo, President, SB Services. “For corporations to leverage their investment in women’s businesses they need to put the issue in context for the consumer.”

About the Survey Respondents

About the Women’s Business Enterprise National Council (WBENC):

For more information about WBENC, visit the website at www.wbenc.org.

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