The Benefits of Small Business in Government Contracting

April 12, 2023
Posted in Resources
April 12, 2023 sean.booker

Often in government contracting, small businesses are overlooked in favor of larger organizations. Yet government agencies are missing out on many benefits by not working with small businesses.

In recent years, the federal government has made an effort to increase equity in federal contracting by encouraging more contracts with small, minority-owned businesses. This is outlined in the 2021 White House brief on The Benefits of Increased Equity in Federal Contracting.

From saving money to increasing the long-term mission success of an organization, here are the biggest benefits you can expect from partnering with a small business on your next contract.

1. Diverse Perspectives 

Bringing in a small, minority-owned business gives a government organization a unique opportunity to learn from an underrepresented community and glean unique insights. From out-of-the-box solutions to better representation, diversity in work products are a major positive for any organization. After the engagement, the government agency can be ensured that their efforts have been informed by a variety of perspectives, leading to better future outcomes. 

2. Superior Quality

To promote small businesses, the government has established rigorous standards for the most effective and highest quality small business contractors. The 8(a) STARS III set-aside contract, for example, brings together the very best 8(a) small business IT contractors, allowing prime contractors and federal agencies the ability to choose from an exclusive group of the very best in federal contracting. Learn more here.

3. Cost-effective Services

Many small, minority-owned businesses are willing to work for lower rates than larger companies. Thanks to their more dynamic nature, they often have creative, unique solutions to problems that other companies would just throw money at. Creative problem solving can be particularly beneficial for government agencies working with limited budgets or tight deadlines.

4. Compliance

Many contracts are set aside specifically for small businesses. Others require a percentage of the contract to be provided by a small, disadvantaged, and/or minority-owned enterprise. The SBA also works with federal agencies to award 23% of prime contract dollars to small business. No matter the exact role, partnering with a small business on a government contract can help meet important compliance requirements that let you excel for years to come.

5. Flexibility and Agility

Small businesses have the advantage of being more nimble than larger companies. Small business leaders can respond more quickly to changing requirements or unexpected challenges due to their lean nature. What’s more, their flexible nature lends itself to experimentation and creativity, as the needs of the contract dictate, resulting in more customized and effective results. This can be invaluable to a government agency that has shifting requirements and often needs to pivot. 

6. Strong Partnerships 

A small business relies heavily on its networks and community partnerships. The leaders of small businesses often make an extra effort to have close relationships with other firms in their industry, staying abreast of industry trends and maintaining strong partnerships. A government agency can take advantage of these connections and tapping into an even broader network of expertise.

7. Personalized Services

For the same service and at a lower cost, small businesses can do exactly what a larger company would do, but with a more personalized touch. Since the business is smaller, leaner, and more nimble, they can provide a high level of individualized attention to their clients and custom fit solutions to the exact needs of each client. 

8. Promote Economic Development 

When a government agency hires small, minority-owned businesses, they are supporting the growth and development of these firms and the community. This often has a positive impact on the local economy, often by creating more jobs and stimulating growth in underrepresented communities. 

While there are many more reasons to hire small, minority-owned businesses like Booker DiMaio, these are the top ones to keep in mind if you’re looking to fulfill contracts this year. These businesses bring diverse perspectives and unique partnerships, at cost-effective rates, while checking all your boxes for compliance. Promote equity in federal contracting and get the results you need with your go-to small business partner, Booker DiMaio! Contact us today:

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