Certification in Supplier Diversity Practice Exam

Which entity is not typically considered a protege firm?

1. Business entities owned by native Hawaiian organizations

2. Large corporations with government contracts

3. Women owned small businesses

4. Service-disabled veteran owned small businesses

The correct answer is: Large corporations with government contracts

In the context of supplier diversity, a protege firm is generally a smaller or disadvantaged business that is being supported by a larger, more established entity, often referred to as a mentor. This relationship is meant to foster the growth and development of the protege firm through guidance, resources, and opportunities. Large corporations with government contracts are typically not considered protege firms. Instead, they often serve the role of mentors or partners to smaller businesses. They are usually well-resourced, with substantial operational capacity and market presence, which allows them to engage with emerging businesses for the purpose of mentorship or supply chain inclusion. In contrast, business entities owned by native Hawaiian organizations, women-owned small businesses, and service-disabled veteran-owned small businesses are typically smaller or minority-owned enterprises that might seek mentorship or support from larger firms. These businesses are more aligned with the characteristics of protege firms, as they may face unique challenges and barriers to growth in the marketplace. Overall, the distinction lies in the scale and role within the mentorship model that supplier diversity programs often promote. This model emphasizes the importance of nurturing smaller, disadvantaged businesses to empower their growth within established markets.