A significant number of small businesses are doing government work. Yet, overall, small businesses are not competing as effectively for government work as large firms.
That’s according to a study reported in today’s Wall Street Journal.
Small businesses report that less than 5% of their total sales come from government contracts (as a total amount of sales).
It’s true, for a significant number of small firms, government work is part of their business. 21% of small businesses had direct contracts with government agencies. Another 15% were subcontractors to prime contractors who do work for the government.
When you consider that the vast majority of businesses (over 99%) are defined as small businesses, you can understand the conclusion that small businesses are not getting their share of government work. Guess that means those of us with small businesses have to try harder…or something.