Small business owners are constantly plagued with inadequate clients or customers, dwindling revenue, cut-throat competition and lack of resources. This results in companies, which even has a substantially promising outlook, to recede from technical and functional advancements. As a result most small businesses suffer setback and in a couple of years’ time lose enthusiasm to continue their work and ultimately shut down. It is unfortunate that even when the federal government sponsored SBA 8a certification program is there to help small business owners in the USA to encourage entrepreneurship, several small enterprises have shut down in the recent past.
The statistics from a recent market survey indicates that there are approximately a few thousands of minority owned businesses in US soil that are yet to get approval from the SBA (Small Business Administration) the principal body that is in charge of offering 8a certification. It is a wasted opportunity for the small biz firms, as leading market strategists’ points out, for not to avail the several 8a benefits. But, one prime reason has been put forward, which says that a lack of quality information on 8a certification advantages has led to such a situation. So here I will, in my own small capacity, try to highlight the 3 prime objectives of achieving 8a certification.
1. Sole sourced contract is boon to small businesses – The federal market is the only place where contracts are awarded to government certified businesses on the basis of their past records, credibility and reference. Multiple bids are not allowed; conversely projects are awarded on the basis of ‘single bids’ or ‘sole-sourced’ contracts. Thus getting your firm certified with the SBA 8a certification program will offer a window of opportunity for your business.
2. Long-term contract with good payout- With a government contract in hand you can surely expect a good stability for your business for a couple of years on the run. Why? Because, federal agencies and departments that usually hire out the 8a certified firms to fulfill their needs for services and products do not wish to engage in the hiring process every other year. Once a contractor/vendor firm is finalized and the task handed over, they usually sign a multiple-year contract. Naturally the payouts are also high adding to the advantage for the small business firms.
3. Joint venture mentor protege program – In addition to the above 2 prime objectives of achieving the 8a certification, certified small biz firms can bag huge federal contracts by forming joint venture with other 8a firms. Two or more 8a certified businesses can thus form joint ventures and apply for and work as a unit to fulfill the extensive requirement of federal clients. Further, to help 8a firms understand the workings of a joint venture procedure, the SBA runs a mentor protege program to coach and train the 8a applicants to understand the functions, rules, and workings of 8a certification approved businesses.
Conclusion: From the extensive explanation offered above, I expect that you have got a clearer picture about the 3 principle objectives of attaining an 8a certification for your small business. The process of application, however, follows an extensive course. So make sure you hire an 8a consultant to guide you all along.