How 'all types' of small businesses can land lucrative government contracts

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For many small businesses, landing a contract with the United States government seems nearly impossible.

But it actually may be easier than one might think, according to Jackie Robinson-Burnette , an associate administrator at the Office of Government Contracting and Business Development, which handles the contracts given to small businesses across America.

“What a lot of people don’t know is that the government spends $600 billion a year, and Congress mandates that we spend 23% of that with small businesses,” Robinson-Burnette said on Financial Freestyle (see video above or listen below). “We’re very serious about making sure dollars don’t just get to small businesses, but they get to all types of diverse small businesses.”

She shared that the government allocated $178 billion to small businesses in 2023, with contracts going to diverse industries such as marketing, construction, leasing, janitorial services, and medical support, among others.

“So many businesses don’t know the government is looking for them,” Robinson-Burnette said.

There are several ways for a small business to secure a government contract. For starters, they can register their business on SAM.gov to receive a Unique Entity ID (UEI) code, which allows them to apply for federal work contracts set aside exclusively for small businesses.

“We have contracts that are under $250,000, which is very small to the federal government, but it could be a huge opportunity for a small minority or disadvantaged business, and those contracts are automatically and exclusively set aside for small businesses,” she said.

How 'all types' of small businesses can land lucrative government contracts

Robinson-Burnette insisted that even small business owners who think that their business may not be the right fit to provide a service to any government agency should sign up on SAM.gov

"I would really encourage everyone to, No. 1, go and register," she said. "Even if you don’t think the government buys what you sell, go and find out."

Robinson-Burnette also recommended going to the US Small Business Administration's learning platform to take free courses that explain how the government works with small businesses.

Additional resources for disadvantaged business owners

There are additional options to obtain government contracts for those who come from particularly disadvantaged backgrounds.

The SBA's 8(a) program offers a nine-year training program for businesses owned by socially and economically disadvantaged individuals, providing assistance to those who want to grow their businesses.

And the Office of Small and Disadvantaged Business Utilization (OSDBU) helps disadvantaged entrepreneurs secure some lucrative contracts — even if they’re not immediately available.

"Find out what the government offices buy to target those specific offices," Robinson-Burnette advised. "Contact the OSDBU office to present the capabilities and ask about what opportunities are available over the next year."

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In addition to the free training on its website, the Small Business Administration offers a mentor-protégé program, which allows small businesses that may not be fully ready to tackle contracts on their own work with larger businesses to get the right experience.

For many small business owners, a contract with the US government can be life-changing — and following some of these steps can set an entrepreneur up for long-term success.

Every Monday, Financial Freestyle host Ross Mac talks with key guests to discuss their wealth-building journeys and what it takes to build a lasting financial footprint. You can find more episodes on our video hub or watch on your preferred streaming service .