Small Businesses

How important are Small Business Enterprises (SBEs) in the United States of America?

The U.S. Small Business Administration (SBA) pretty much says it all: they represent 99.7% of all employer firms; they employ just over 50% of all private-sector employees; they pay 44% of the total U.S. private payroll; they have generated 64% of the net new jobs over the past 15 years; they create more than 50% of the non-farm, private Gross Domestic Product (GDP); they hire 40% of the high-technology workers such as scientists, engineers and computer programmers; they are 52% home-based and 2% franchises; they are made up 97.3% percent of all identified exporters and produced 30.2% of the known export value in Fiscal Year (FY) 2007; and they produce 13 times more patents per employee than large-patenting firms. In comparison to large-firm patents, the small-firm patents are twice as likely to be among the 1% most-cited patents. (See ).

Through the 1953 Small Business Act (see, the U.S. Government set policy to leverage the strengths of the SBEs. That act states that all small businesses shall have the maximum practicable opportunity to participate in providing goods and services to the government. To ensure that SBEs get their fair share, the SBA negotiates annual procurement preference “goals” with each Federal agency and reviews each agency’s results. The SBA is responsible for ensuring that the statutory government-wide goals are met in the aggregate. Similar public-sector policy has been established at the state, county and municipal government levels. Those customers may restrict bidding on certain projects to Disadvantaged Business Enterprises (DBEs), Historically Underutilized Business (HUB) Zone small business concerns; Minority Business Enterprises (MBEs), Service-Disabled Veteran-Owned Businesses (SDVOBs), Small Business Enterprises (SBEs), Veteran-owned Businesses (VOBs), Woman-owned Business Enterprises (WBEs), etc. Often designated as “best-value” projects, they are awarded with SBE factors along with price and other qualifications.

As a General Contractor that is also a SBE, we have implemented a proactive small-business strategy that promotes our networking with other SBE firms, subcontractors, vendors and suppliers (see Dorazio Network). We believe that this strategy will help to successfully compete on public-sector projects, and will create a synergy that will be mutually beneficial. To proactively implement our strategy, we request that you keep your certifications up to date. Please e-mail us PDF files of your current certificates so that we can quickly request quotes, and complete the documentation required for promoting SBEs.

Think about it! …

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