During these times of economic duress, there’s actually room for growth—you just have to know where to look.
Even before the recession, the federal government has been considered a fairly untapped entity with which to do business. But small business owners need to reconsider their efforts and for good reason:
Furthermore, federal agencies are required to establish contracting goals, with at least 23% of all government spending targeted to small businesses.
In 2007, small businesses won $83.2 billion in federal prime contracts, an increase of almost $6 billion from 2006, according to the Small Business Administration . The figure is a hefty one; however, the government’s small business spending goal was actually missed by 1%.
“Many small business owners do not consider the viability of the government contract market,” says Karen Bailey, founder and CEO of The Resource King International L.L.C., a Norfolk, Virginia-based company that specializes in preparing and positioning businesses for government contracts and grants as well as individuals for career transitions. “The government represents a ‘paying’ customer with unlimited needs who spends millions everyday, buying in both small and large volumes the very products and services that many small businesses sell.”
And contributing to this push is President Barack Obama’s economic stimulus package which will provide billions of dollars in contracting opportunities over the next several years. The areas projected to have the most significant opportunities include infrastructure, modernization of schools, green initiatives, technology, construction, and health information technology.