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Study: Large Corporations Spending On Small Business
Written by Jenna Weiner
Business Roundtable study reveals more large companies spend $3 on products and services from small businesses
According to a recent study by the Business Rountable, large corporations from the United States buy more than $3 billion worth of products and services from small business suppliers annually. The group, which is made up of CEOs from some of the largest companies in the U.S., also estimated that it is responsible for more than $1.5 trillion in intermediate inputs from small businesses each year.
Among the members of the Rountable is the CEO of Verizon Communications, Ivan Seidenberg, who said that the partnership between small and large businesses was important to the overall success of the economy.
"This study underscores that the supplier-buyer relationship between American small businesses and large U.S. multinationals is a fundamental and entrenched aspect of our economy," Seidenberg said in a statement. "Large companies are major customers of small businesses and play a critical role in their growth and success. American business - small and large together - drives economic growth and job creation."
The study showed that when large companies spent $1 billion it was good news for small business, translating into $174 million for the companies in new revenue. The survey also revealed that, on average, companies reported buying goods and services from more than 6,000 small business per year.
The Business Rountable made headlines last month after it praised President Obama for reforming the country's export system. In a statement, the group said that it would work with the president and Congress to help push through the National Export Initiative.
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