Small businesses looking to expand their markets have a new tool to help with their hunt. Supplier Connection is an online portal that connects small businesses to large corporations in need of products or services.

The initiative is a national public-private partnership between the U.S. Small Business Administration (SBA), the IBM Foundation and 15 private-sector companies. The website was built by IBM and was launched at the end of March.

“The initiative was started to build connections between small businesses and large companies, and to provide opportunities for small businesses to expand their markets,” said Joe Folsom, Des Moines district director of the SBA.

On the site, small businesses register and fill out an application detailing their products and services, financial information and basic company information. Once the information is submitted, all 15 of the partner companies have access to it. Members might be contacted for further information.

Often, small business owners don’t know what type of product or service a large corporation is looking for, Folsom said. Additionally, identifying and getting in contact with the person who is in charge of making decisions is even harder.

This is where the website steps in to help.

“The portal breaks through those major challenges, and large businesses can focus in on those who can meet their needs.” Folsom said. “It provides a better match between suppliers and businesses so (small businesses) don’t have to make an unnecessary sales pitch.”

Folsom called the program a win-win, saying the large partner companies are equally willing to participate.

“What’s really exciting is how the large companies have embraced this,” Folsom said. “They can use it to tap into new opportunities.”

Two of the partner companies have strong roots in Iowa: Wells Fargo & Co. and Deere & Co.

“John Deere focuses a substantial amount of energy on supplier development,” said Ken Goldstein, a company spokesman. “Programs such as the Supplier Connection help smaller companies compete for business and be part of the supply chain of global organizations such as Deere.”

As for Wells Fargo, the company said it was happy to partner with the program because it recognizes the important role small businesses play in the economic success of the communities it serves.

“The Supplier Connection initiative will help us in our efforts to identify and build relationships with diverse-owned small businesses that provide innovative, creative and cost-effective products and services,” the company said in a statement. “We believe that together with our suppliers, we can contribute to the long-term economic sustainability of our communities.”

Additional partner companies include Facebook Inc., AT&T Inc., IBM Corp., Pfizer Inc., United Parcel Service Inc., Caterpillar Inc., Advanced Micro Devices Inc., Office Depot Inc., Dell Inc., JPMorgan Chase & Co., Citigroup Inc., Kellogg Co. and Bank of America Corp. Together, the 15 partner companies currently involved have a combined purchasing power of $300 billion each year, according to the Supplier Connection website.

Although the program is viewed positively by many in the small business community, it’s far from perfect. A Wall Street Journal article spoke to several business owners who used the program in its beta mode last year. One owner stated that the 15 corporate participants is a “limited number,” adding that his firm would still have trouble getting its foot in the door when dealing with those outside the program.

However, Supplier Connection hopes to increase the number of participating large companies over the next several years, with a goal of reaching 100 companies, according to the website.

Likewise, Jim Heckmann, state director of the Iowa Small Business Development Centers, said he’s interested to see how effective the program will be.

“But I think it can result in some great opportunities,” he said.

The SBA district office in Des Moines is working on getting the word out to business owners, Folsom said, adding he’s already talked to the Iowa Association of Business and Industry and the Iowa chapter of the National Federation of Independent Business. He also has plans to talk to the Greater Des Moines Partnership.

Folsom said he couldn’t cite a specific Iowa company that has registered yet, but he has received positive feedback about the idea from organizations and companies he has spoken to so far.

“It gives small businesses the opportunity to expand their markets, network and build relationships, and develop new opportunities,” Folsom said.

Requirements

Small businesses interested in joining must have fewer than 500 employees, or have less than $50 million in annual revenue. Additionally, small businesses must provide one of the following services:

• Chemicals

• Connectivity

• Construction and outside plant work

• Consulting services

• Educational services

• Facilities maintenance and design

• Financial Services

• Fleet/auto parts

• Human resources services

• IT products, services and maintenance

• Legal

• Logistics

• Marketing communications

• Market intelligence/research

• MRO/supplies/office supplies

• Packaging materials and services

• Printed material and services

• Software

• Security/security systems/security services

• Temporary/complementary/subcontractor work force