The small business in government procurement: some problems and causes

Abstract

It is the declared policy of the Congress that small business shall be assisted and its interests protected to preserve free competitive enterprise. Specifically, it shall receive a "fair proportion" of government contracts. Whether the "fair proportion" policy is effectively executed is moot; however, there are forces within the procurement process which work to the greater detriment of small business. Implicitly, then, small business could benefit more from government procurement than it does. This paper examines several definitions of "small business," and discusses a number of characteristics which differentiate the small firm from the large. Economic, social and cultural contributions of small business are presented. Small business policy is presented in terms of the committee structure and legislative acts of the Congress Utilization of the government contract to achieve socioeconomic goals is described. Finally, a few problems that small business encounters are discussed in terms of their impact and causes.