SB Participation Q 1

If a small business has a good service or product that the federal government can use then the first two major barriers must be addressed for more participation are:

1. Cash flow for 12 -36 months to cover G&A- Fringe & Over Head depending on industry needs to be easily accessible. If a company jumps through all the hoops to become a federal contractor then to survive long enough for repeated contract awards to provide the revenues to get to the breakeven point SB's need to be provided the upfront cash flow it will take to become a thriving company.

2. Bonding is the next hurdle that if no upfront cash is available then the innovations and solutions providers that have new ideas will almost never be able to break through these 2 major barriers. Thus the same old ideas and companies with low -bid and often outdated solutions that do not address long term solutions will continue to keep new SB participation very low.