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Expanding Opportunities for Small Businesses: The Biden-Harris Administration’s Focus on Federal Contracts
The Biden-Harris administration has taken significant steps to expand access to federal contracts for small businesses, including those owned by socially and economically disadvantaged individuals. By setting a goal of allocating 15% of federal contracting dollars to these businesses by fiscal year 2025, the administration is working towards fostering inclusive economic growth and empowering underrepresented communities. In fiscal year 2022, small businesses received nearly $163 billion in federal contracting dollars, showcasing the impact of these initiatives.
However, challenges still exist for small businesses looking to secure government contracts. Research from Setscale revealed that over half of small business owners are unaware of the opportunities associated with federal contracts, resulting in a significant loss to the economy annually. Access to capital also remains a pressing issue, with many small businesses struggling to manage cash flow and retain enough working capital to fulfill government contracts.
To address these challenges, there is a need for more education and awareness initiatives to inform small businesses about the benefits of government contracts. Additionally, policymakers must prioritize initiatives that enhance access to capital for small businesses, particularly those owned by individuals from underrepresented communities. Collaboration between government agencies, financial institutions, and private-sector stakeholders is also crucial to streamline the federal contracting process and provide small businesses with the support they need to succeed.
By investing in education, innovation, and collaboration, we can create a more inclusive and resilient economy where small businesses have the opportunity to thrive. The expansion of access to federal contracts for small businesses is a positive step towards economic prosperity and growth.
