Small Business Preference
Order Instructions:
Imagine you are a service-disabled veteran and have made your hobby of building model airplanes into a small business that produces very small remote control aircraft capable of long sustained flights. You are ready to expand your business by competing for Department of Homeland Security contracts.
Write a two to three (2-3) page paper in which you:
1. Determine at least three (3) specific programs created by Congress that benefit your business.
2. Analyze the small-business programs created by Congress and provide details of how they will benefit your company over large multinational organizations that build aircrafts (e.g., Lockheed Martin).
3. Use at least three (3) quality resources in this assignment. Note: Wikipedia and similar Websites do not qualify as quality resources.
Your assignment must follow these formatting requirements:
• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
• Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
• Differentiate between business sizes and analyze the opportunities for small businesses.
• Evaluate common small-business preference programs.
• Use technology and information resources to research issues in contract administration and management.
• Write clearly and concisely about contract administration and management using proper writing mechanics.
SAMPLE ANSWER
Small Business Preference
Small business is responsible for many of the job opportunities that exist in the United States. Therefore it becomes imperative that the small problems be given a preference when it comes to certain matters in business. The Congress decided to come up with an initiative and passed specific laws that saw the incorporation of small business compete effectively with the large corporations for the business space. The small business act of 1953 states that a fair proportion of the federal contacts should go to the small business. Also congress set aside 23% of the contracts to go to small business while 5% would go to small disadvantaged groups. Additionally another 5% would go to women owned small business and the last 3% would go to historically neglected business zones. The small Business administration is in charge of all the above programs as permitted by the congress law (Calof, 2006).
The small set aside program is one of such programs implemented by small business administration. It is one of the most suitable socioeconomic programs that have been put forward by the Unite state. For example, only small business is eligible for contracting under such a program. Big business and firms who might have applied for the same contract are rejected since they do not meet the required set standards by the program. A business is considered to be small when it does not have more or close to five hundred employees and its revenue is way beyond $ 7 billion annually. Additionally the small business under this program are much likely to benefit from subcontracting as they are able to cut down or reduce on the costs required in the purchasing of certain items (Dachis,& Lester n,d). For example they are only required to cater for 50% of the total cost making it more favorable for them. In this case such a program provided will enable small companies to be able to contracts without fear of competition from the big companies such as Lockheed Martin
The second congress plan that favours small business is referred to as small disadvantaged business. The rules that fall under this category essentially lock out most of the large multinational countries. For example it requires that the business be identically small as put across in the small business acts and by the small business administration. Also it requires that the business be about 51% owned by the individuals who are socially disadvantaged in this case refereeing to either one being black American, Hispanic , native American or east pacific American (Maher, 2015). Furthermore, it classifies the disadvantage as either being physically handicapped in terms of gender or age and lastly that the net salary is less than $ 750,000 which categorically fits into the company I intend to model. Additionally such a program is provided if only you fall under specific categories as outlined by the law. In this case, the contract would fall under the transportation system.
The service disabled veteran program is the last law that exclusively falls within the scope. First I qualify because I am already a disabled veteran. The awards in this case are made at a fair market price and the contracting officer ensures that at least two or more service disabled officers can raise the required amount. A contract can also be awarded on a solo basis if the contracting officers realises that no two service disabled officers can raise the required amount to be given the contract. Basically, the contract has same features as the Historically Underutilised Business zones.
The above three laws shows the difference between small business and large business. It also shows the opportunities that are presented by the preference programs. Large companies are those which have a great number of employees and can therefore be comfortably be able to raise more revenue in this case greater than $7 billion. Because small programs cannot raise such revenues that are provided by an equal opportunity to be able to compete effectively in the market. The small preferences programs that have been put across reduce the monopoly that is normally a practise of the large corporations. The awarding of the specific contracts as seen from the above features follows strict management policy. A contract is only given to the small business provided it meets the set criteria that have been established by the various laws. Each contracting officer is required to follow the laid down stipulations in following the laws and if a small business is not identified in the process the contract is given to two small business owners who come together to join their business and raise the required funds.
In conclusion laws that have been enacted by congress promote an equal chance for competition between the small companies and the established large incorporation. Since majority of the people in the United States have smaller business the law serves to protect them against monopoly that is commonly associated with the large corporation. Lastly it is only fair enough for the small business to be protected to avoid their extinction in the market and also since they contribute to more jobs in the United States.
References
Calof, J. (2006). ANALYSIS OF SMALL BUSINESS OWNERS’ FINANC PREFERENCES. Journal Of Small Business & Entrepreneurship, 3(3), 39-44. http://dx.doi.org/10.1080/08276331.1986.10600238
Dachis, B., & Lester, J. Small Business Preferences as a Barrier to Growth: Not So Tall after All. SSRN Electronic Journal. http://dx.doi.org/10.2139/ssrn.2609527
Maher, C. (2015). Social enterprise manager’s career path preferences. International Journal Of Globalisation And Small Business, 7(1), 59. http://dx.doi.org/10.1504/ijgsb.2015.069032
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