Survey Finds 96% of Execs Want to Source More From Small Businesses, But Gaps Are Costing Them

The value of small supplier sourcing

Supplier.io released new research highlighting the growing importance of small suppliers in enterprise supply chains. According to the new CPO survey report, Scaling Small: Inside the Enterprise Push to Source Smarter and Stay Competitive , most leaders say small businesses play a vital role in driving operational and financial security, with more than half reporting improved performance, reduced costs, or stronger resilience as a result. Yet, most organizations admit they lack the data and vetting to scale these partnerships, leaving significant untapped value on the table.

“This research makes clear what enterprises already know: small suppliers are essential for resilience, growth, and innovation,” said Neeraj Shah, Founder and CEO of Supplier.io. “The challenge has never been intent; it’s scale and effective vetting. Too many enterprises still rely on outdated systems and incomplete data, which leaves them vulnerable to disruption and financial loss. With the right intelligence, small suppliers can move from the margins to the center of sourcing strategies, creating supply chains that are stronger, smarter, and built to last.”

Challenges of finding and vetting small suppliers

Based on a survey of more than 150 enterprise leaders—including chief procurement officers and other C-suite executives, from organizations with over $500 million in annual revenue—the report finds businesses want to do more with small suppliers. However, internal hurdles and information gaps continue to keep execution lagging behind intent. Ninety-six percent of executives say they would source more from small suppliers if it were easier to find, vet, and onboard them, yet Supplier.io platform data shows companies allocate an average of just 7% of total spend to small suppliers. This shows a ceiling on small supplier engagement, created by outdated processes and limited visibility.

CPO survey details

These findings highlight both the urgency and opportunity for enterprises, with key takeaways including:

• Small suppliers help offset tariff disruption. Ninety-one percent of leaders say they’ve adjusted or plan to adjust their small supplier sourcing strategies due to tariffs, with 71% increasing spend with U.S.-based small suppliers.
• Sourcing small creates competitive and financial value. Leaders reported improved quality and performance (56%), greater supply chain resilience (53%), and reduced costs (50%) as the most frequent benefits.
• Failed partnerships come at a high cost. Forty-one percent of enterprises experienced a failed small supplier relationship in the last 12 months because of poor vetting. Reported consequences included financial loss (66%), delays to major project or product launches (48%) and direct customer dissatisfaction (48%).

To read the full report, Scaling Small: Inside the Enterprise Push to Source Smarter and Stay Competitive, visit https://supplier.io/resources/report/the-2025-cpo-survey-report.  

With a database of more than 11 million global supplier profiles enriched by over 450 million data points, Supplier.io gives enterprises the visibility and intelligence they need to discover, vet, and scale small business partnerships with confidence. To learn more, visit www.supplier.io

About Supplier.io

Supplier.io is the leading provider of supplier and sourcing intelligence, empowering organizations to improve supply chain visibility, mitigate risk, and make data-driven sourcing decisions. With the industry’s most comprehensive supplier database and advanced analytics platform, Supplier.io supports responsible and sustainable sourcing initiatives, helping enterprises manage complexity, enhance agility, and drive smarter procurement outcomes.