Small Businesses Should Eye Opportunities on Government Procurement
Though they are called small businesses, they are able to provide huge contributions to the economy of the United States. They provide jobs to more than 50 percent of the workforce in the private sector. The numbers may look impossible to some, but small businesses in the first two years of the 20th century were able to hire more than 800,000. It is for this reason the federal government aims for more of their participation on government procurement.
The objective of the government is to give out 23 percent of its most important contracts to small businesses by encouraging them to participate in the opportunities for government procurement. This gives them the fair share of the federal spending, which reaches up to billions of dollars. The selling prospects range from paper clips to computers, to various technologies to huge equipment.
Federal agencies must ensure also that 5 percent of its major and farm-out contracts are given to small disadvantaged businesses. Women-owned small enterprises, on the other hand, must receive similar allocation. Three percent of primary contracts should go to HUBZone small businesses, while 3 percent of both prime and subcontracts are intended for service-disabled, veteran-owned small ventures. Each government organization must make this a goal.
This allocation or procurement management is sufficient to provide more income opportunities to small businesses. But, more importantly, this is enough to boost the employment of the country. This is why they should eye their participation in the government procurement process. If they are not too sure about testing the waters of procurement management, they can at least participate as a subcontractor to organizations that hold the awards as prime contractors. In this way, they will be able to familiarize themselves in the procurement process.
It is very crucial for small enterprises to know how to sell to the federal government. They must have the exact knowledge to direct them toward successful involvement in the government biddings. It is not as easy as learning how to read A-B-C and how to count 1-2-3. But, it will surely provide them huge benefits.
Government procurement is the best way to thank small enterprises in the United States for the most important role they play responsibly for the federal government. They established their trade for the foremost reason of being able to provide for their families; but, they were able to do more than that. Hence, the government procurement is also designed for them.
The objective of the government is to give out 23 percent of its most important contracts to small businesses by encouraging them to participate in the opportunities for government procurement. This gives them the fair share of the federal spending, which reaches up to billions of dollars. The selling prospects range from paper clips to computers, to various technologies to huge equipment.
Federal agencies must ensure also that 5 percent of its major and farm-out contracts are given to small disadvantaged businesses. Women-owned small enterprises, on the other hand, must receive similar allocation. Three percent of primary contracts should go to HUBZone small businesses, while 3 percent of both prime and subcontracts are intended for service-disabled, veteran-owned small ventures. Each government organization must make this a goal.
This allocation or procurement management is sufficient to provide more income opportunities to small businesses. But, more importantly, this is enough to boost the employment of the country. This is why they should eye their participation in the government procurement process. If they are not too sure about testing the waters of procurement management, they can at least participate as a subcontractor to organizations that hold the awards as prime contractors. In this way, they will be able to familiarize themselves in the procurement process.
It is very crucial for small enterprises to know how to sell to the federal government. They must have the exact knowledge to direct them toward successful involvement in the government biddings. It is not as easy as learning how to read A-B-C and how to count 1-2-3. But, it will surely provide them huge benefits.
Government procurement is the best way to thank small enterprises in the United States for the most important role they play responsibly for the federal government. They established their trade for the foremost reason of being able to provide for their families; but, they were able to do more than that. Hence, the government procurement is also designed for them.
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