“The biggest mistake a small business can make is to think like a small business”

—Postfilm Design

In the rapidly globalizing world in which we live today, many individuals neglect to take time to consider how great of an impact entrepreneurs have on our everyday lives. Dictionary.com accurately defines an entrepreneur as “a person who organizes and manages any enterprise, especially a business, usually with considerable risk.” Indeed, being an entrepreneur is not for those who do not have a strong will to prevail. Evidently, if entrepreneurial-minded people like JK Rowling, Steve Jobs and Steve Wozniak, or Jeff Bezos never followed their grandiose visions, the world as we know it may have never read a Harry Potter book, experienced the IPhone, or enjoyed the benefits free two-day shipping with Amazon Prime.

While no two entrepreneurs are identical in their endeavors, business-minded individuals must be determined, dedicated and disciplined to ensure success in their small business undertakings as there really is nothing small about operating a business of any size. This message was reinforced at a “Big Think” series event sponsored by the Small Business Administration (SBA) on 21 September 2015, titled, “Economic Mobility: Entrepreneurship & the Opportunity Gap” in which panelists discussed how to reduce the barriers to starting a business and increase economic mobility through entrepreneurship. The esteemed panel of Congressman Donald M. Payne, Jr. (NJ-10), SBA Administrator Maria Contreras-Sweet, U.S. Senator Cory Booker (D-NJ), and Alan Krueger, Princeton University most notably touched on the topic of economic, political, and social discrimination of marginalized individuals (women, minorities, disabled persons, veterans, young people etc.) in small businesses. Findings by the SBA included reference to multiple studies which found disproportionate numbers of loan denials to minority business owners, despite controls for metrics of financial health¹.

In an ideal world, an entrepreneur with a profound idea translated into a tangible business model and the willpower to execute should be able to fulfill their small business goals. Unfortunately, research shows that despite their growing economic significance, firms owned by women and minority entrepreneurs tend to be smaller, less profitable, and carry lower survival rates than their male or non-minority counterparts. In contrast, entrepreneurship has been found to be relatively more enhanced among white, native-born, and long-term community members when compared to minority, immigrant, and recent-entrant community members¹. Furthermore, minority small business owners—especially Black and Hispanic entrepreneurs—are disproportionately denied credit when they apply for credit even after controlling for business credit scores, personal wealth, and revenues¹.

This is a giant problem in the United States where the American dream is meant to provide equal opportunity to all of its citizens—including entrepreneurs—regardless of the race, creed, religion, age, gender, or socioeconomic status. Research implies, however, that the American dream inherently allows the aforementioned distinctions to limit small business ambitions. So, how can disadvantaged groups advance their opportunity for success in the world of small business?

Much of the answer lies in the advocacy efforts of both the SBA and the Office of the National Ombudsman—a small business overseer that has helped thousands of small businesses save time and money by resolving difficult regulatory compliance and enforcement issues. According to the SBA, The National Ombudsman works directly with federal regulators as part of President Obama’s mandate to promote a level playing field for small businesses². By working with federal regulators, The National Ombudsman is able to facilitate practical and timely resolutions of Regulatory Enforcement Fairness (REF) matters that impact small businesses. A few of the ways in which The National Ombudsman executes fair enforcement of small business regulation include²:

• Providing small business owners a confidential way to report and resolve federal REF problems, like excessive enforcement action or disproportionate fines
• Escalating small business concerns to federal agencies for fairness review and resolution
• Grading federal agencies on their small business policies and practices

By connecting with The National Ombudsmen online, at regional SBA listening sessions, or in person, disadvantaged small business owners are able to provide helpful input on REF issues that can assist federal regulators to better comprehend how government can best support small business success. In fact, The National Ombudsman provides an annual report to Congress on its findings that highlights the impact of the policies and practices of every federal agency that touches small businesses. With these means, all hope is not lost for marginalized small business owners and entrepreneurs.

1. Kymn, Christine. “Access to Capital for Women- and Minority-owned Businesses: Revisiting Key Variables.” Www.sba.gov/advocacy. The Office of Economic Research of the Office for Advocacy, 29 Jan. 2014. Web. 20 Sept. 2015.
   
2. “Advocacy and Ombudsman: Watching Out for the Interests of Small Businesses.” Resource Guide for Small Business 2015: 52. Print.
   

    

We’ve all heard it before: Experience is the best teacher. While this may be true, technology, through its rapid availability, improvement, provides highly effective solutions for a wide-range of issues that previously required extensive experience to resolve. Companies, organizations, and individuals are relying on innovative technological solutions more than ever to solve complex and multi-faceted issues such as home-buying, investment banking, and accelerated communication. Now, the United States General Services Administration (GSA) is following suit by adopting a forward thinking technological approach that will simplify the sale of technology to the government by new Information Technology Contractors.

Traditionally,  GSA has required that technology firms have at least two years of corporate experience, which is the agency’s current requirement for contractors to obtain a spot on the Schedule 70 — GSA’s list of approved Information Technology vendors, but in a new request for information (RFI), GSA is seeking advice about how the federal contracting system can be improved.

Instead of the two year experience mandate, GSA would instead require contracting agencies to submit a written description of their relevant experience as well as documentation demonstrating financial responsibility. By implementing this new measure, GSA could effectuate an increase of emerging small businesses to the Schedule 70, gain better access to innovative companies, transcend leading-edge technological solutions, and acquire a wider range of contracting options. The result would likely mean a proliferation of new contractors’ with the ability to meet sales criteria, among other measures.

So, how likely is it that GSA will repeal its two-year experience requirement? The answer may lie in the hands of contractors and their ability to use persuasive rhetoric to convince GSA to make a favorable decision. Indeed, until September, 18^th 2015, GSA is collecting input from both public and private agencies by inquiring about the conceivable benefits of implementing such a reformative measure. According to NextGov.com, some of the specific subjects that contractors are urged to answer include:

• What are the potential benefits and downsides to removing the two-year corporate experience requirement?
• What other requirements or processes prevent businesses from obtaining a Schedule 70 contract?
• What requirements and processes make it hard to work with the government even after getting a Schedule 70 contract?

Although GSA has yet to make a concrete decision regarding their new endeavor to repeal its two-year experience rule, small business contracting agencies, such as Sabre88, will remain hopeful in receiving positive news.

 

http://www.nextgov.com/technology-news/2015/09/gsa-tries-make-contracting-easier-suppliers/120236/?oref=dropdown