Small Business contracting goals require accountability to achieve them. Key management practices help small business owners institutionalize the achievement of such goals. These practices help organizations become more sustainable, grow and achieve organizational longevity. They also help ensure that the small businesses are receiving fair compensation for their work.
Adopting key management practices to drive accountability and institutionalize achievement of small business contracting goals
By using key management practices to institutionalize achievement of small business contracting goals, organizations can ensure the continued success of their small business. These practices should be part of every small business’s daily routine. They should ensure that each employee is held accountable for meeting their goals and that their work is well-supported. In addition, they should provide support to small businesses that are disadvantaged.
The government has a mandate to increase the percentage of small, disadvantaged, and women-owned small businesses (SDBs) in government contracts. The current statutory target is five percent. The President has set a goal of making sure that at least fifteen percent of governmentwide procurement dollars go to SDBs by 2025. These goals will help guide the priorities of nearly 40,000 federal contracting officers. Ultimately, these goals will result in increased contracting opportunities for underserved small businesses and help reverse the downward trend in small business supplier numbers.
The Task Force has identified five key management practices that will help small businesses succeed. These practices include: addressing barriers to equal employment opportunity, effectively communicating with employees, and ensuring compliance with the law. These practices are intended to ensure an organization’s commitment to EEO objectives and demonstrate management accountability.
In addition to key management practices, the Task Force has included an expanded presence program and the Office of Special Projects. These programs provide training and assistance to small businesses. They also aim to increase the accessibility of EEOC staff to underserved communities.
As part of the Category Management Reform, federal agencies will begin receiving automatic “credit” under category management for all awards they make to socioeconomic small businesses beginning in FY2022. This new credit will support the federal government’s goal of increasing federal contracting opportunities for SDBs and promoting diversity in the federal supplier base.
Under the new regulations, federal agencies will be required to provide data about the socioeconomic status of their awardees. This will provide greater transparency about the number and percentage of awards made to each socioeconomic small business. Further, the data will also include specific information, such as the number of women and minority-owned businesses.
The revised category management guidance will also require federal agencies to increase their small disadvantaged business contracting goals to 11 percent by fiscal year 2022 and 15 percent by 2025. While these goals are a great start, the Obama administration has said that more is needed to increase the number of SDB contracts awarded to underserved small businesses. For example, only a small percentage of the federal government’s total contracting dollars goes to Black and Latino-owned small businesses. And only a small fraction of federal contracting dollars go to women-owned small businesses.
One of the key aspects of small business success is the achievement of organizational longevity. Longevity is important to a business because it allows the business to learn from mistakes and successes. Longevity also helps an organization reach its financial goals, so establishing a firm that will last for years is an important goal to have.
The federal and provincial governments have a range of programs that can help small businesses, including free business resources and government funding. One of these programs is the Canada Business Network, a collaboration of federal, provincial, and not-for-profit entities. It offers free webinars across Canada and counsels business owners on government resources. The provincial government also offers Small Business Access, which offers workshops and a free helpline to help small businesses navigate the process. The organization also provides information on the legal requirements to set up a business in Canada.