Today, we want to share some breaking news with you regarding government contracts.
According to the SBA, the federal government just handed out over $145 billion dollars in government contracts for small businesses.
For some context, this exceeds what the government spent in the prior year by over $13 billion dollars.
The federal government is clearly ramping up its spending to protect the backbone of the economy – small businesses.
And for thousands of entrepreneurs, this spending turns into revenue that they can use to build wealth and increase profits.
So if you want a piece of the pie, read until the end for the full scoop.
Because in this post, we will be talking about these billions of dollars worth of government contracts for small businesses.
But before we do that, let’s talk about government contracts first.
First of all, it’s important to note that government spending represents over ⅓ of all spending in the United States.
For example, in 2020 the government spent over $6.5 trillion dollars.
The U.S. government is, quite literally, the world’s largest customer.
We are notorious for spending trillions of dollars, printing money, and making it go BRRRRRR.
And sometimes, we’re guilty of doing a little bit too much of that.
But technically, this money is supposed to be spent on programs to ensure the well-being of our citizens.
And one of those programs includes government contracting to small businesses.
The government sets aside billions of dollars each year to contract small businesses, women-owned businesses, and other disadvantaged businesses.
To further explain, let’s take a look at a quote from SBA Administrator, Isabel Guzman:
“We’re committed to increasing these opportunities and lowering barriers to give our small businesses a chance to grow their revenues through contracting.
Our goal this year, and every year, is to make sure that small businesses can be like the giants they are in our economy and to create conditions to guarantee their success.”
So basically, the federal government wants to do business with small businesses. They want to support them and help them prosper in our economy.
And the record-breaking numbers indicate that they are doing just that.
As you can see in the second column of this table, the federal government sets a goal for how much money they want to spend on government contracts for eligible small businesses.
For example, the goal for small businesses was to spend 23% of their budget on small business contracts.
And they exceeded this goal and spent over 26% of their budget on small business contracts.
And according to the White House, they want to increase the share of contracts awarded to small businesses by 50 percent over the next 5 years.
In fact, President Biden made an executive order to remove barriers and make it easier for small businesses to procure government contracting opportunities.
So, what does this mean for you?
It means that you can earn thousands, if not millions, of dollars through government contracts.
For example, we met the owner of a small business that became one of the fastest-growing companies in the U.S. through government contracts.
He provided engineering services and made millions of dollars per year by using government contracts.
So trust us, you can definitely do this for your business. But that’s just one benefit.
Another major benefit of pursuing government contracts is that your competition is limited.
Unlike the private sector, you do not have to compete against large enterprises and Fortune 500 companies to earn business from the government.
As you just saw, the federal government must contract a specific percentage of small businesses every year.
So if you fit the criteria, you will only be bidding against other small businesses as well, which improves your chances of being rewarded with government contracts.
And contrary to what you might think, it is not very difficult to become a government contractor.
All you have to do is register and once you are approved, you can start bidding on open contract opportunities.
We even went through this process ourselves for one of our small businesses and was accepted as a government contractor.
If you are interested in learning more about how to become a government contractor, then read our post on How to Get Government Contracts.
In this post, we will walk you through, step-by-step, how to procure government contracts.
But for now, we just wanted to let you know that the government is spending more and more money on government contracting for small businesses.
And as the world’s largest customer, you may be able to grow your business by contracting with them, especially as they are trying to make this process as easy as possible for you.
We would love to hear from you!