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The U.S. Mid-Sized Business Administration? (also known as "We Must Protect This House!")

Posted By Guy Timberlake, The American Small Business Coalition, LLC, Wednesday, July 07, 2010
"We Must Protect This House!"

In a recent Washington Technology article by Matthew Weigelt entitled "Small-biz definitions put hurt on midsize contractors" business leaders from mid-tier companies talk about the squeeze they feel once they graduate from the current SBA size standards that define what a small business is for federal contracting. They talk about the "procurement cliff" companies face, specifically in the area of IT and the investment by the Government which is being lost when these companies who benefited from SBA Small Business Assistance are essentially forgotten about.

While I can empathize with the sentiment, the answer is not in expanding the size standards drastically to accommodate companies with upwards of $100M in annual revenues as is the case with the companies in the WT article. With a straight face, I say, lobby to create a new agency or at least a new set of rules which apply to this group of companies. If the Government sees fit to create assistance programs for mid-tier companies it should not be to the detriment of current and future small businesses.

Increasing the size standards creates a backlash on the entry-tier of the size standards, basically making it near impossible for newer, smaller companies to even get started. Since the size standard applies to direct contracting and subcontracting, it creates the same effect for small businesses as the rule which makes Alaskan Native Corporations small businesses for contracting/subcontracting, regardless of their size. Actions like these further cripple the ability of America's Innovation and Economic Engine to create jobs and bring their ideas and solutions to the Public and Private Sectors.

Without question, mid-tier companies need help at some level and I would participate in helping find a resolution to the proverbial "No Man's Land" that exists for companies who graduate from the small business program. But not at the expense of putting additional hurdles in front of our small businesses.

Like the folks at Under Armour have so eloquently stated in their marketing, "We Must Protect This House!"


Best regards,

Guy Timberlake
Chief Visionary and CEO

"The person who says it cannot be done
should not interrupt the person doing it."

Identify, Qualify, Pursue and Capture B2G Business Opportunities.

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Comments on this post...

Richard Dean, Geneva Software, Inc. says...
Posted Thursday, July 08, 2010
Right on, right on, RIGHT ON!!!!!!
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Carey Bandler says...
Posted Monday, July 12, 2010
While I don't disagree with your sentiment, I would suggest that instead of mid-tier standards we should take a hard look at the size standards and how they are currently applied to NAICS codes. Then take a hard look at the application of these standards and codes to the actual work being performed. Also, the size standards of a corporation should more appropriately be defined.

For hypothetical example, I don't think that a privately held landscaping company with revenue exceeding $27M shouldn't have to compete as a large business when they decide to start a software development shop under the same ownership.

My .02
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