Small Business Month: Recognizing Government’s Role in Advancing Small Businesses

Hosted by the Small Business Administration (S.B.A.), every May, Small Business Month celebrates the courageous entrepreneurs who make up the backbone of the U.S. economy.

There are an astounding 33.2 million small businesses in the U.S., and they make up 99.9 percent of businesses in our country. In fact, nearly half of all U.S. employees work for small businesses.

That is why the SBA is vital for propping up our nation’s small business economic engine. The agency provides a wide-range of resources, including loan programs, training and counseling services, as well as government contracting opportunities to help small businesses succeed.

Along these lines, the federal government awarded $682.6 billion in contracts to small businesses in 2022 – making up 23.2 percent of total contracts. In addition, there are more than 400,000 companies with active registrations to perform contracts with the federal government.

The government also supports contracting opportunities for Service-Disabled Veteran-Owned Small Business (SDVOSB), Women-Owned Small Business (WOSB), and HUBZone businesses. As part of the Bipartisan Infrastructure Law, President Biden aims to increase the share of federal contracts going to small, disadvantaged businesses (SDBs) to 15 percent by 2025. According to this fact sheet, this is a 50 percent increase from the most recent spending levels.

The government also supports small businesses through tax incentives, grants, and loans. For example, the government offers tax incentives to small businesses that invest in research and development, hire new employees, or provide health insurance to their employees. The government also provides grants and loans to small businesses in certain industries, such as agriculture or renewable energy.

In honor of Small Business Month, we will be publishing a series of content around how Makpar has created a winning small business culture that has translated into mission success for our government customers.

In the meantime, contact us here to learn more about how Makpar offers a small business approach to solving large enterprise problems for government.