Encouragement Of Small Business Research Paper Example | Topics and Well Written Essays - 1750 words

Encouragement Of Small Business - Research Paper Example One of the ways through which the national governments promote entrepreneurship is by encouraging small businesses through financial incentives, training for small entrepreneurs, providing exposures to such small businesses, and even reserving some government contracts to small businesses. By reserving certain government contracts to small businesses, it offers them an opportunity for growth, expansion, exposure, and even it shields them from competing with large businesses that have massive financial resources that small businesses cannot compete against (Compton, 2009). It is important to note that under the Small Business Act, a small business is defined as a business that is owned and operated by an independent person (S), and it is not a dominant player in the market. This present paper will focus on the encouragement of small businesses by the government through the Federal Acquisition Regulation (FAR), which spells out regulations for government officials when they are making purchases of government’s goods and services. ... Socio-economic considerations of the federal procurement process Broaddus et al. (2009) that the legal framework that is in place requires that the United States government to engage in an efficient and competitive process when it is procuring goods and services. Besides abiding by this legal framework, the government has further instituted various policies in the acquisition process in a bid to promote certain socio-economic objectives. The policies have been aimed at proving more contracting opportunities to vulnerable groups such as small businesses owned by youths, small women-owned businesses, veteran-owned small businesses, and service-disabled veteran-owned small businesses. However, these small businesses are required to abide by the ancillary requirements as stipulated in the law and in executive orders. According to Keyes (2003), the main socio-economic consideration of the federal procurement process is the uplifting of small businesses that are owned by disadvantaged grou p or persons, who face economical and social disadvantages. These businesses have been accorded special status by the Small Business Act in regards to the U.S government procurement process. Therefore, it is more likely for these small businesses to be awarded a government contract since the government aims at improving the social and economic conditions of the people who run the small businesses, their families, and the community at large. Gender is also a factor that is considered in the government procurement process, in order to favor small businesses that are owned and managed by women entrepreneurs who are normally clustered as a disadvantaged group because of the various challenges that they face. Keyes (2003) stated that the consideration of women in the federal procurement