Federal Act and Small Businesses
The notion that the federal government supports certain large business organizations at the expense of others has been built on propaganda and politics. On the contrary, the federal government has put in place, policies that have been beneficial to small business organizations at the expense of the large business organizations. The industrial policies put have been stumbling blocks for large business organizations while the small business organizations have been exposed to few policies that make the playing ground more favorable to small businesses than to the large businesses. The economic policy that has been in existence since the 1950s has seen policies being developed to control the operations of large businesses while sparing small businesses. The federal act has specifically given more liberty to small businesses and has made the small business able to access contracts easily compared to large businesses. The federal act gives preference to small businesses while awarding contracts and my small aircraft business has a significant advantage over larger businesses such as Mitsubishi Aircraft Corporation and is in a position to win the contracts easily.
The application for government contracts is a long procedure that may discourage small businesses if proper mechanisms are not set aside. Therefore, the government has laid down procedures that help small businesses to access the contracts and engage actively in building the economy (Kirkwood, 2016). The help given to small businesses concerning winning the government contracts includes advice since government contracts require patience because the government does not act in a speed that may bring gaps in the contracting process. My decision to move from a hobby to a business requires adaptation to the requirements for a successful business. The competition in the Department of Homeland Security contracts is stiff, and the organization is required to avoid giving up in the process. Also, competing with large companies such as Mitsubishi Aircraft Corporation requires determination and patience. However, my small business has an additional advantage over large business organizations and will be determined to win the contracts from the Department of Homeland Security contracts.
‘Set-aside’ contracts are the federal government’s way of achieving formal goals of awarding a specified number of contracts to small businesses. The establishment of ‘set-aside’ contracts targets small businesses in general, women-owned businesses, as well as businesses owned by people with disabilities. Therefore, the small businesses such as my aircraft business have the opportunity to compete for several contracts without interruption from large businesses, which may take advantage of their size to win the contracts from the government. Additionally, the Small Business Administration works to the advantage of small businesses and advocates for the preservation of the contracts that are for small business organizations. The ‘set-aside’ contracts may, however, not be enough for all the small business organizations, and therefore, other strategies may work to the advantage for small business organizations.
The policies set by the federal government are favorable for the small business organizations and sets the small business organizations in a better position to win contracts. The contracting system allows for the teaming up of small business organizations in pursuance of a certain contract (Miller & Ellis, 2016). The ability to team up gives small businesses an added advantage while competing for contracts with large business organizations. The allowance for teaming up has given small business organizations the chance to pull up resources in a bid to beat the complications in the procedure of acquiring government contracts.
The aircraft business will be a small business enterprise that will need a simple organizational chart. The organization will be structured to ensure that all the activities needed to fulfill the requirements of the contract are well considered. The organizational chart will consider three critical departments for the business that are the sales and marketing, operations department, and the finance department. The departments will work in unity to achieve the common goals of the business. Additionally, each department will be headed by a manager while the assistant managers will oversee the operation of every department’s role.
In sum, the federal act has given small business organizations an advantage over large businesses in the competition for government contracts. The establishment of ‘set-aside’ contracts has specifically saved several small businesses from the challenges of competing for opportunities with large businesses. However, the allowance for teaming up between small businesses has given small businesses a chance to enjoy an advantage in the competition for contract opportunities. The success of my aircraft business will depend on the effectiveness of the organizational business chart that will define the business departments according to the roles of the departments. Generally, the federal act has made the contracting system favorable for small businesses for the expense of the large business organizations.
Organizational Chart
References
Kirkwood, W. (2016). The evolution of small business preferences in the United States and selected lessons learned for the European Union. Eur. Procurement & Pub. Private Partnership L. Rev., 11, 311.
Miller, M. A., & Ellis, J. M. (2016). The NAICS code selection process and small business participation. NAVAL POSTGRADUATE SCHOOL MONTEREY CA MONTEREY United States.