Large Business Taking Federal Contracts
One benefit of being a small business is the opportunity to receive financing from government contracts reserved for smaller firms. The majority of these contracts may not be going to small businesses though. According to a study by the American Small Business League huge companies are taking these contracts from the small businesses they are intended for.
The study found that three-fourths of “small” businesses contracted by the federal government are actually huge companies, like AT&T or IBM. Small business lose about $60 billion in contracts per year, the American Small Business League says.
On the American Small Business League’s website it states that, “Misrepresenting your firm as a small business is a felony, but the SBA has NEVER prosecuted a single offender.”
The federal government sets aside contract money for small businesses every year. However, most of the money ends up going to huge corporations. What do you think needs to be done to help small businesses benefit from government contracts?