March 21, 2016
Why Are Women-Owned Small Businesses Only Getting 5% Of Government Contracts?
Source: FAST Company, Gwen Moran, March 17, 2016
It’s a good news/bad news situation, but the future may be more hopeful.
In a quintessential case of good news/bad news, the U.S. Small Business Administration (SBA) announced on March 2, 2016, that, for the first time, it met its goal in the amount of federal contracts awarded to women-owned small businesses (WOSB)—a goal that was set roughly 20 years ago.
But for a goal that took nearly two decades to reach, the total amount awarded may not sound very impressive. It was just 5.05%.
Why did it take 20 years to hit that mark—and why does it seem so low? The answers need some context, says John Shoraka, SBA associate administrator. First, the SBA’s overall small business set-aside goal is 23%—a number it also bested by nearly 3% last year, for an all-time high of 25.75%. That’s $90.7 billion in business going to small businesses. The 5.05% in contracts that went to WOSBs represent $17.8 billion, Shoraka says.
“It means that women-owned small businesses are the first tier of the supply chain to the federal government. They’re not subcontractors to other primes. They’re not a couple of tiers down in the supply chain. They are actually the direct contractor with the federal government, which has a lot of benefits, and certainly can create a lot of traction for future successes,” he says. READ MORE….
Women owned business are winning more government contracts. Contact your nearest PTAC to learn more about the program.
For help with Government Contracting: contact your nearest Procurement Technical Assistance Center (PTAC). Funded through Cooperative Agreements between the U.S. Department of Defense and state and local governments/institutions, PTACs provide free and low-cost assistance in virtually all areas of government contracting.