A new survey conducted among small business owners who are active federal government contractors finds that their investment of time and money seeking contracting opportunities has increased by 21% over the past year, as federal contract spending has declined 12%.
This and other facts come from Trends in Federal Contracting for Small Businesses, a new report authored by Womenable from a survey conducted by us for American Express OPEN’s Victory in Procurement for Small Business program.
The survey was conducted online in October 2011 among small business owners who are registered on the Central Contractor Registry (CCR) and are either currently performing on a federal contract (prime or subcontractor) or who have done so within the past five years.
Other findings from this first of four reports drawn from the survey include:
- On average, active contractors invested $103,827 in time and money last year seeking federal contracts, up from $86,124 in 2009;
- Larger firms invest more seeking contracting opportunities, but so do firms owned by persons of color. Women invest somewhat less time and money seeking federal contracting opportunities than do their male counterparts;
- On average, small firms submitted an average of 4.4 bids before they won their very first federal contract – the lesson being, if at first you don’t succeed, try, try, and try again;
- Over the long term, experience pays off. Average bidding success rates – 38% overall – are significantly higher among firms with 10+ years of contracting experience compared to those firms with three years or less contracting experience.
The other three reports will focus on special trends among women and minority business owners, how strategies and outcomes change with level of procurement experience, and what lessons can be learned from firms that focus on subcontracting as a procurement strategy.
To learn more and download a copy of the report, read this Womenable-authored blogpost on openforum.com. Look for the next report from this survey in about a month; it will focus on the key findings among women and minority business owners.