Since 2003, over a dozen federal investigations have been released which found thousands of firms such as British Aerospace (BAE), Rolls-Royce, AT&T, Wal-Mart, Xerox, Home Depot, General Dynamics, Raytheon, John Deere, Dell Computer and Dutch conglomerate Buhrmann NV have all received federal small business contracts.
Politicians love to pay lip service to small businesses, saying how important we are to the economy. They use us as leverage for or against bills concerning taxes, health insurance, job growth and the vitality of our communities. Yet when it comes down to when it really matters, they turn a blind eye to Fortune 1000 companies stealing the food off the small business table.
The latest U.S. Census Bureau data indicates that 98 percent of all U.S. firms have less than 100 employees. These 27 million small businesses employ over 55 percent of the private sector workforce and create over 97 percent of all net new jobs. Those same small businesses are responsible for over 50 percent of the Gross Domestic Product (GDP) and over 50 percent of all innovations.
The major business organizations, such as the Chambers of Commerce are either silent or in opposition to reforms that would ensure that small businesses would receive their fair share of government contracts. Once again it is pretty obvious that when it comes to business and politics, he who has the gold, makes the rules. Making matters worse, the organization that should be looking out for small business owners are bought and paid for by big business.
In the House of Representatives, congressional leaders are considering H.R. 2568, the Fairness and Transparency in Contracting Act which eliminates self certification and puts the onus on federal contracting officials to ensure that Fortune 500 firms and other publicly traded firms no longer receive federal small business contracts. Current federal law stipulates that a small business must be “independently owned.” Since publicly traded firms are publicly owned, they would not qualify as “independently owned” for the purpose of federal small business contracting programs. H.R. 2568 stipulates that federal contracting officials and prime contractors would no longer be able to report awards to publicly traded firms as small business awards.
Seems pretty simple and straight forward to me. Why would any business organization, particularly those that claim to be voice of small business like National Federation of Independent Businesses (NFIB) be silent on such a basic and fundamental issue for small businesses? Why aren’t our local, state and US Chambers of Commerce supporting this bill that would ensure that small businesses, the backbone of our country, get what they deserve under the law?
If you’re a chamber member ask your leadership why they aren’t supporting HR 2568. You pay dues and you have the right to an answer. Same thing for those that are paid members of NFIB. Why is the “voice of small business” silent on this issue?
The only business organization I will support as a small business person is the American Small Business League. They have my support and I urge you to support them too.
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