WT Business Beat

By Nick Wakeman

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Nick Wakeman

Readers speak out on small biz issues

My proposal to combine all the small business programs into one has recieved mixed reviews. Some commenters such as Khary completely disagreed and defended the programs by reminding me that one of the goals of the small business programs is to create different types of businesses.

If the programs were consolidated, there is too much risk that one of the groups would get the short end of the stick, so to speak. Also, a consolidated program risks even fewer dollars going to small businesses.

"Let's be real about the situation," Khary wrote. "Individuals constantly complain about small business set a sides, but if you look at the big picture, small businesses only get a fraction of the pie."

At least one commenter agreed that all the small business programs should have a graduation component. Another thought that the set-asides should be group by size - very small, small and medium.

Tom44 presented a set of recommendations to reform the small business programs as a way to reduce abuse of the program. First, any small business that is a front for a large business, by passing income through to the large business, should lose its small business designation. He also wants more citizenship requirements for owners and emoployees as a way of boosting U.S. employment.

I think with the change in administration and new leaderhip at the House Government Oversight and Reform Committee, we're likely to see some changes in small businesss programs.

My sense is that we'll see an emphasis on enforcement to make sure it is small businesses that are winning the contracts and doing the work.

I also wouldn't be surprised if there are more incentives for large businesses to use small businesses as subs and partners.

Which makes me wonder what will happen to the guys in the middle?

Posted by Nick Wakeman on Dec 17, 2008 at 9:54 AM

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