Tag Archives: small business

Federal Government Fails Small Businesses for 11th Straight Year, Washington Post Reports

The following was reported in the Washington Post:

The federal government has yet again fallen short of its stated small-business contracting goals, extending a streak of coming up just shy for an eleventh consecutive year.

Federal agencies awarded a total of $91.5 billion to small companies in fiscal 2011, down 7 percent from $97.9 billion the year prior, according data released Tuesday by the Small Business Administration. That amounts to 21.7 percent of all prime government contracts, down from 22.7 percent in fiscal 2010 and even further short of the stated annual goal of 23 percent.

The government also missed its procurement goals for women-owned and service-disabled veteran-owned businesses, as well as those located in traditionally underserved and underemployed regions of the country.

“Releasing the numbers at this point really highlights where there are opportunities for improvement,” John Shokora, SBA associate administrator for government contracting, said in a media call. “This highlights the fact that we need to improve and highlights the agencies that need to focus on that improvement.”

The SBA also grades each agency on its success over the past year awarding contracts to small businesses. Notably, the Department of Energy, the second-largest government buyer, received a failing grade, signifying that it came up at least 30 percent short of meeting its procurement goals.

On the other hand, the Department of Health and Human Services, which spends the third most of any agency, received an ‘A’ for awarding 24 percent of its contracting dollars to small businesses.

Currently, there are no penalties in place for agencies that fall shy of their small business contracting goals. However, lawmakers in both chambers and on both sides of the aisle recently introduced bills that would either eliminate bonuses for department heads or reduce budgets for agencies that miss the mark.

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Filed under A Need to Know Basis

Georgia is 9th on List of States Where Small Businesses Hit Hardest By Housing Meltdown

According to the Daily Dose, small businesses in states hit hardest by the collapse of the housing market are having a hard time getting access to capital to grow and hire.

In early April, Pepperdine University, in partnership with Dun & Bradstreet Credibility Corp., surveyed almost 6,000 small businesses about their success in accessing capital.

Below is a list of the states where a high percentage of respondents said their growth was being impeded due to tight credit:

  1. Nevada (75 percent)
  2. New Mexico (72.6 percent)
  3. Maryland (70.5 percent)
  4. Florida (70.2 percent)
  5. Virginia (68.8 percent)
  6. Delaware (68.2 percent)
  7. North Carolina (67.7 percent)
  8. California (67.4 percent)
  9. Georgia (66.9 percent)
  10. South Carolina (66.1 percent)

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Filed under Georgia Law

5 Findings about the State of Small Business

I found this study to be very interesting, and I wanted to share some of its findings with you.

Key findings of The Pepperdine Private Capital Markets Project State of Small Business Report (Fall 2011), hereinafter “Report” are:

  1. Overall business conditions are declining and not expected to improve.
  2. There is an aspiration to hire.
  3. Economic uncertainty is the biggest impediment to growth.
  4. Improving access to capital will help create jobs.
  5. Businesses looking to hire believe they will need to train new hires.

Of the 10,637* privately- held businesses responding to the survey upon which the Report is based, close to 91%  report having enthusiasm to “execute growth strategies” but only 49% report having the financial resources to successfully execute the strategies.

Close to 35% of the respondents tried to obtain outside funding in the last 12 months.  Approximately 54% reported seeking bank loans or credit card financing, followed by friends and family (16%). Of all financing options, bank loans were reported to be the source of financing described in the Report as having the highest “willingness” for small businesses to use (72%), followed by angel financing (35%) and asset based lending (33%).  Nevertheless, the Report indicates that of 2,595 small businesses that tried to obtain a bank loan in the last 12 months, only 50% were successful.

*24% involved in customer goods and services, 21% in manufacturing, construction and engineering and 17% in wholesale and distribution.

Which of these 5 findings affects you the most?

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Filed under Let's Learn Something