Back in 1994, Congress mandated legislation to allot 5% of government contracts to women-owned businesses, and to help meet this goal, a "set-aside program" for women-owned businesses was established in 2000.
Note that the numbers of women-owned businesses have exploded since then, but we've still seen abysmal results: only 3% of federal contracts go to women-owned businesses. Furthermore, laughably, the SBA recently proposed new rules that will only allow federal agencies to implement the set-aside program for women-owned businesses in four of over 2,300 business categories. Those four categories include: kitchen cabinet manufacturing, engraving, other motor vehicles and intelligence.
According to NAWBO, "if implemented consistent with the proposed rules, the set-aside program will do little if anything to increase the share of federal contracts that go to women-owned businesses."
"As a business owner and president of the only dues-based national organization representing the interests of all women entrepreneurs across all industries, I am disappointed that the Small Business Administration has, again, failed to be an advocate for women business owners," said Lisa Kaiser Hickey, NAWBO's president and president/CEO, Douglas Screen Printers, Inc. in Lakeland, Fla.
The SBA, by law, must hold a 60 day public comment period before the rule can be finalized. The comment period ends February 25, 2008, so let them know your opinion.
Please join with me in posting a comment about this issue. Women are half the population: let's make sure that federal spending gets increased to originally mandated levels and that all women business owners benefit.
Monica, I’m a president in a women-owned small business government contractor, and I don’t see nearly enough diversity in the executive ranks of contractors when I attend conferences, so I think this proposed rule change is a step backwards
Posted by: Mike Zaramba | March 24, 2008 1:59 PM | Permalink to Comment