The Weekly Dispatch: SBA Fiddles with the Definition of 'Small'
The Dispatch scours the Web every Monday to find must-read news that affects you and your business, and what it really means. Here's what I'm reading this week.
1. Small Business Administration proposes redefining 'small' business
The takeaway: Federal contracting has had a tumultuous few months as officials have turned cost-conscious, fiddling with contracting price structures, capping costs, and increasing oversight of federal projects. Then last week, the Small Business Administration suggested another change: an amended definition of "small business" in a range of fields from accounting to computer programming. The proposed changes differ from industry to industry, but overall they increase the amount of revenue a company can make while still qualifying as a small business. For example, an environmental consulting company could make up to $14 million in revenue annually and still qualify, as opposed to the current cap of $7 million. The revenue ceiling for IT companies would increase only slightly, from $25 million to $25.5 million.
According to the SBA, the move would allow 9,450 more businesses to compete for federal contracts. Proposal backers, including some trade groups, say the change would help small businesses that manage to snag a contract that then pushes them over the cap and prevents them from growing their businesses further.
2. The tsunami hits small businesses hard
The takeaway: Multinationals and big businesses aren't the only ones worried about colleagues and contacts in Japan -- as well as what the earthquake/tsunami/nuclear disaster means for their businesses. Small companies from travel agencies to sneaker manufacturers are keeping a close watch on the news coming out of Japan to determine whether factories can still manufacture the parts they import for their products, where their shipments have gone, and what kind of shape their facilities overseas are in.
3. Republicans want to slash SBA budget by $100 million
The takeaway: House Republicans won't release their 2012 budget proposal until next month, but last week Rep. Sam Graves (R-Mo.) said that the SBA budget could stand a much bigger cut than the $28 million cut Obama proposed. More like $100 million. Under the Republican plan, programs like the small business development centers, which would take a hit under Obama's proposal, would remain intact, but other development programs that target women and veterans, disadvantaged businesses and Native Americans would get slashed. Ten regional offices would be shuttered, and staff at the agency's D.C. headquarters would be reduced. Meanwhile, Republicans would take $2 million of the money saved and give it to SBA staff that help smaller firms snag federal contracts, while another $2 million would go to the inspector general's office.
Of course, nothing is definite at this point. The appropriations committees in each chamber of Congress decide the ultimate funding, and then the bills must pass a vote.
4. More small firms seek funding to go global
The takeaway: According to the Export-Import bank, small business export financing increased between October and January to $1.5 billion, compared to $1.4 billion during the same period last year. The reported uptick comes one month after the SBA announced a $90 million program to increase small business exporting as part of the Small Business Jobs Act. The program will help fund endeavors like foreign sales trips and marketing plans. The Administration's goal is to double exports by 2014.
5. Tell us again how that healthcare law works...
The takeaway: Nearly a year after healthcare reform was signed into law, a Kaiser Family Foundation survey shows that 53 percent of Americans say they are still confused about the legislation. Meanwhile, a survey commissioned by two organizations that back the law, Pacific Community Ventures and Small Business Majority, found that 57 percent of California businesses with fewer than 20 employees are unfamiliar with tax credits designed to offset healthcare costs. The results from both surveys illustrate the ongoing challenge that Obama and the legislation's backers still face in selling healthcare reform.
6. Could your business survive without mobile apps?
The takeaway: According to an AT&T survey (so yes, highly suspect results) more than a third of the 2,246 businesses surveyed say that it would be hard for them to survive without their mobile apps. About 72 percent say they use apps in their operations, from GPS to social media. Now obviously, AT&T may have been simply surveying its own customers who would be more likely to use mobile apps than, say, the general small business operation across the U.S., but I think that there's little doubt that the use of mobile apps is on the rise.
What say you? To what extent do you use mobile apps in your own business? What apps can't you live without?
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Image courtesy flickr user chefranden CC 2.0
