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Monday, October 22, 2012

Federal Dollars For Small Business Shrank In 2011

"Small businesses received $6.4 billion fewer contracting dollars from federal agencies in fiscal 2011 than in the previous year, leading one lawmaker to call the numbers “abysmal.”

Small businesses received $91.5 billion in prime contracts last year, or 21.65 percent of federal contracting dollars. By contrast in fiscal 2010 they received $97.9 billion, or 22.7 percent of government dollars.

The annual government wide goal is 23 percent.

The Small Business Administration gave the government an overall grade of B, or 96.16 percent, for its efforts last year. A grade of A is for exceeding the set goal. A B is for achieving 90 percent to 99 percent.

Of the government’s four small-business segments, agencies failed to meet the goals for three:

Women-owned small companies received $16.8 billion last year, or 3.98 percent. In fiscal 2010, they received 4.04 percent. The goal is 5 percent.

Companies in economically depressed regions, known as Historically Underutilized Business Zones (HUBZones), received $9.9 billion, or 2.35 percent, of federal dollars. In fiscal 2010, they received 2.77 percent. The goal is 3 percent.

Service-disabled veteran-owned small businesses received $11.2 billion, or 2.65 percent, of federal dollars. This was an increase in the amount of money awarded. In fiscal 2010, they received $10.8 billion, or 2.50 percent. Nevertheless, agencies failed to reach the 3-percent goal.

Agencies exceeded one goal – 5 percent for small, disadvantaged businesses, despite less money awarded overall. Small, disadvantaged businesses received $32.4 billion, or 7.67 percent of federal contracting dollars. In fiscal 2010, they received 7.95 percent of dollars.

The scorecard reflects the need for federal agencies to find ways to improve their small-business contracting, John Shoraka, associate administrator for government contracting and business development at SBA, wrote July 3 on the SBA blog."

Obama does not improve the above. The agency heads and the large corporations that serve them make it happen. They obviously need to be motivated by more than the POTUS.

from Washington Technology

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