Is the government giving small biz a fair shake?
Last year was a record for small businesses, which scooped up more than $93 billion in federal contracts, a $10 billion jump from a year earlier, according to a report by the U.S. Small Business Administration (SBA).
It’s good news to be sure, but critics are already grumbling that the government only allotted 21.5 percent of its promised 23 percent target to small businesses for fiscal 2008.
Key among their complaints:
* High costs: Small businesses often opt out of the running for government contracts for fear that they can’t absorb the proposal costs that can run as high as $25,000 to $500,000, The Washington Post reports.
* Misrepresentation: Critics say large businesses have been known to fudge their size and scope to win contracts intended for their smaller counterparts, and urge government to penalize companies that do so.
* Poor enforcement: Small businesses are calling for a tougher crackdown on government agencies that fail to meet their contracting requirements. (The SBA report shows that only one agency actually met its goal.)
Has your business lost out on a lucrative government contract? If so, what should be done to ensure small business get their fair share of work? Share your story below.