In my last post I wrote about the unfairness that has come about from the Bush Administration and the Small Business Administration on big businesses being awarded small business contracts. The SBA and entrepreneurs cannot agree on the why it is happening or the extent of this problem. Here are some more details to ponder regarding this issue.
It is a proven fact that large businesses are repeatedly being awarded procurement contracts that are supposed to be allocated to small businesses in the United States.
There is a fairly new plan in place for monitoring the size of small businesses to ensure that they are indeed small businesses. Businesses will have to report a change from small business status and go through a re-certification process. The problem lies in the fact that this new regulation is due to take affect only after 5 years from it’s signing by the Bush Administration. It was signed in June of 2007, so it will not be useful until June of 2012. In the meantime, big businesses will continue to hog many of the contracts that are intended for small businesses.
Both sides of this issue agree that it is difficult to keep track of companies that should be considered a small business. Some small businesses are bought out by larger businesses. Some become larger with business success. But, with the present system in place, big businesses are still allowed to apply for and receive federal contracts.
Please check back on Wednesday for the conclusion to this post.
