Last month the U.S. Small Business Administration (SBA) released fiscal data for 2022 that showed that the federal government spent $162.9 billion contract dollars with small businesses in the United States. While that is a staggering amount of money—and more than ever before—the overall percentage of dollars that went to small businesses actually declined by almost half a percent. The reason is simple—not enough small businesses are taking advantage of federal contracting options. As we move into the latter half of 2023, let’s change that!
Small Businesses & Federal Contract Dollars by the Numbers
In order to explain and quantify how the government is partnering with small businesses, the SBA releases annual scorecards showing the proportion of contract dollars going to small businesses and how they are allocated. The 2022 highlights include:
- $28.1 billion dollars went to women owned small businesses.
- $96.9 billion dollars went to small disadvantaged businesses.
- The government nearly met or exceeded all small business prime contracting achievement goals in 2022.
- The percentage of subcontracted dollars that went to small businesses increased for the first time since 2019.
What does all of this mean for you and your small business? Simply put—strike while the iron is hot! The 2023 SBA Goaling Guidelines indicate that they’re setting the same achievement percentages for the government to attain, with the exception of the small disadvantaged businesses category increasing from 11% of prime contract spending to 12%. It is clear that the government is serious about funneling contract dollars into U.S. small businesses, as benefits of these practices are being publicly shared by the Biden-Harris administration.
Getting a Piece of the Federal Contracting Pie
In previous blog posts, we’ve discussed various federal contracting programs available for small businesses—now is the time to give them a review! Along with the monetary infusion that a federal contract will bring your small business, other benefits include:
- Support from the government that helps you avoid being overrun by the larger, “big box” enterprises,
- An expanded network of business and finance professionals, and
- Increased economic growth potential in your community.
The SBA’s contracting guide can help you find a program specialized to your small business and grant you access to counseling today.
Let Growth Capital Help
Not sure where to start? Let Growth Capital help! We are passionate about helping small businesses succeed and fostering economic growth where it’s needed most—one of the best ways to do that is through government contract partnerships. Contact us today to get started!