The federal, state and local government agencies throughout the United States are looking to do business with women-owned firms like never before. One of the key reasons is that women-owned firms in the U.S. are growing like never before.
The federal government, along with many states and local government agencies, maintain goals regarding the contracts they target for women-owned businesses. The federal government’s goal is 5% of the more than $300 billion in federal contracts which amounts to $15 billion in business opportunities that should be won by women-owned firms. This is both good news and bad news. The bad news is that this goal has never been reached. The good news is that there is a greater opportunity now than ever before for women-owned firms to tackle and win contracts in the government market.
This is a time of golden opportunity because the SBA has finally issued the proposed regulations to implement the formal women’s federal procurement program which was approved as law over five years ago, but never enacted. This important program provides a targeted option to enable federal contracting officers to “set-aside” certain procurements for women-owned businesses. This creates an unprecedented opportunity for qualified women-owned firms to jump-start their government contracting business.
Can women-owned business handle these opportunities? The answer is a resounding yes. A recent report by the Office of Advocacy of the U.S. Small Business Administration (SBA) states that women-owned firms increased nearly 20 percent over the latest period studied. During the five years between 1997 and 2002, women-owned firms grew by 19.8 percent while all U.S. firms grew by seven percent.
The report uses newly released U.S. Census and other data to describe women’s contributions to the economy. Statistics documented in the report include:
* In 2002, women owned 6.5 million or 28.2 percent of nonfarm U.S. firms. More than 14 percent of these women-owned firms were employers, with 7.1 million workers and $173.7 billion in annual payroll.
* According to 2002 data, significant proportions of women-owned businesses were in professional, scientific, and technical services, and in health care and social assistance.
Another fascinating statistic from a different organization, the Center for Women’s Business Research states that:
* Businesses majority-owned by women of color have grown six times faster than all U.S. firms between 1997-2004. The number of firms increased by more than half (55%), number of employees increased by nearly two-thirds (62%), and annual sales revenue increased by almost three quarters (74%).
Firms owned by women have the knowledge and capacity to perform well in the government market. Generally their biggest hurdles are learning how to break into the market and working within government processes, rules and regulations. There are a number of organizations that are poised to help women-business owners tackle this profitable market such as the SBA and the National Women’s Business Council. It is a complicated maze, but one worth tackling!
Gloria Berthold is President of TargetGov, a national firm specializing in helping companies win government contracts in federal, state and local governments.
Gloria Berthold is president of TargetGov at Marketing Outsource Associates, Inc. and an expert in business development in the corporate and government business arenas. She is a dynamic speaker and book author and very adept at negotiating the government contracting maze. Her accomplishments have included: Maryland Advocacy Director, Women Impacting Public Policy (WIPP); Maryland’s Top 100 Women 2004; Winner of the Innovator of the Year Award 2003; Past-Chairwoman of the Baltimore/Washington Corridor Chamber of Commerce; Past-President, The Columbia Business Exchange; Business of the Year Volunteer Award 2000 for the Business Women’s Network. She has been quoted in USA Today, Inc. Magazine, Government Executive Magazine and other publications.
Tags: federal contracting, federal contracts, federal procurement, formal women, government market, procurement program, small business administration, state and local government, u s census, women business owners