Uncle Sam bought over $80 billion in products and services from small businesses last year. Which door should you knock on to get Small-Business Tax Deduction?
According to data recently released in the Federal Procurement Data System (FPDS), federal government agencies award over $83 billion in small business contracts during 2012. This represents approximately 22 percent of the $376 billion in contracts for which small businesses were eligible. This is very close to the 23 percent which has served as an unmet goal for many years.
Taking a closer look at the numbers, it’s clear that small business owners have better odds of winning contracts with certain agencies. At the top of the list are the Department of Agriculture and Department of the Interior, both of which awarded over 50 percent of their contracts to small businesses. The worst performing agency was the Department of Energy which awarded a measly 5.15 percent to small businesses.
Government contracting can be an excellent way to secure stable cash flow for your business. Regardless of your views on the size of government, the reality is that the U.S. Government is the largest buyer in the world and it has the resources to pay for what it buys.
