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When Small Businesses Lose to Big Companies

By Lloyd Chapman
New York Times
June 25, 2008

To the Editor:

Re “The Small Business Administration’s Comeback,” by Jovita Carranza, the acting administrator of the Small Business Administration (letter, The New York Times on the Web, June 19):

I would suggest that Ms. Carranza check out the reports from the S.B.A.’s own inspector general.

In 2005, the inspector general released three reports, which found that the S.B.A. was reporting awards to large corporations toward the small-business procurement goal, that large businesses were improperly getting federal small-business contracts and that the diversion of federal small-business contracts to large corporations was one of the biggest challenges facing the S.B.A. and the entire federal government today.

Since 2002, there has been a series of federal investigations that have all found that the S.B.A. has allowed some of the largest corporations in the world to get federal small-business contracts.

It is disappointing to see Ms. Carranza continue the Bush administration’s trend of muddying the water around the diversion of billions of dollars in federal small-business contracts to large corporations.

We believe that President Bush will take one last shot at dismantling federal small business programs before he leaves office by changing the definition of a small business to include companies that have no business anywhere near federal small-business programs.

Lloyd Chapman
American Small Business League
Petaluma, Calif., June 19, 2008

Source:  http://www.nytimes.com/2008/06/25/opinion/lweb25sba.html?_r=1&ref=opinion&oref=slogin

Related Article: 

Small-Business Agency’s Problems Linger as Leader Moves on to HUD (June 12, 2008)



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