Small Businesses

By Chandrashekar (Chandra) Tamirisa, (On Twitter) @c_tamirisa

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(The Government Printing Office – GPO – amended its error as I was writing this article, interestingly, surveilling me – a private citizen, a version of the document the GPO had placed inconsistently with current law removing public evidence for a key argument necessary to raise small business set-aside to 50% from the current 39%. Such behavior is not appreciated from the United States government by its citizens and will be seen as government corruption. The surveillance activity will be seen as evidence of government misconduct violating civil liberties of US citizens. Government errors and policies or the reputations of selected individuals, including members of Congress, elected officials in the Executive Branch, Federal Reserve officials and Nobel Laureates, are not protected under the constitution and the US intelligence community has no business spending tax payer funds to do so.)

Small businesses have historically, for the past 34 years after the Small Business Act of 1953 and over several reauthorizations since the passage of Public Law 95-507, been actively supported by both Democrat and Republican administrations (Huffington Post must carefully research its SBA numbers attributable to small business job creation in the United States to be credible in front of the Congress. Also, as a note to Pulitzer Prize winning Huffington Post’s writer Roger Chapman, the 1953 SBA, as a separate agency, especially at a time when the size of government is in debate, is neither necessary nor sufficient precedence for PL 10o-656 which prescribes small business goals for the various agencies.).

Nearly all types of establishments doing business with the United States government in accordance with the North American Industry Classification System (NAICS) can be contracted as small businesses by the government if they meet the criteria for employee size and/or revenue.

Per the law 15 USC 644 the president must annually establish the goals for awards and contracts. The totals are 39% for all SBA. Breakdown is 23-3-3-5-5 by disadvantaged group. All government agencies comply with the law except the Board of Governors of the Federal Reserve System.

The Civil Rights Act of 1964 empowers any person or business, following Constitutional Amendments 13 and 14, to seek redressal from discrimination in contract awards under law and the appropriate government agency procedures. Further, teaming requirements of 15 USC 644 and mentor-protege programs of government agencies ensure that the general welfare of the United States is enhanced by the legal requirement for the government to incubate a vibrant business environment to justify 15 USC 644 on the basis of economic substance. Still, 40% may not be enough in small-business set-asides.

The changing demographic of the United States looking to 2050 and, increasingly, the presence of few large firms in critical technology areas serving the government requires that these firms team with at least 50% of small businesses across the country to provides goods and services to the United States government.

The 112 and 113th Congresses should work to amend the current law, therefore, to raise the SBA-set aside for all activities to 50% to enable solid middle class growth, and not only a few designated activities (currently allowed 40% for SBA plus the 3-3-5-5 for other disadvantaged groups, a total of 56% for all SBA). The market can deal with the capabilities by implementing teaming and mentor-protege programs. Also, the statute requiring the president to issue an annual policy directive to establish set-aide goals is not necessary, except in national emergencies where the law can be overridden.

Leveraging 80% private financing for every dollar of the annual 500 billion in 20% government spending, at least 12.5 million high paying jobs can be created in a 80-20 partnership with the government. Small businesses can account for at least 6 million of those jobs.


About Chandrashekar (Chandra) Tamirisa
This entry was posted in Economics, North America and Caribbean, Transformations LLC and tagged , , . Bookmark the permalink.

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