CompTIA and TL PAC Call on Washington to Improve Small IT Business Access to Government Procurement Opportunities

Business Wire

posted: 32 DAYS 9 HOURS AGO

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CompTIA, joined by the Technology Leadership PAC, today welcomed Washington’s new focus on promoting the growth of U.S. small businesses to help America out of its economic malaise. The two organizations believe that these and other efforts – such as improving access by small IT businesses to federal procurement opportunities like those within the American Reinvestment and Recovery Act (“ARRA”) – will prove essential toward getting America’s economy back to health.

“President Obama, the SBA, and Congress have embarked on changing the environment for our small business members,” said Bob Kramer, Vice President of Public Policy for CompTIA. “In particular, the House Small Business Committee introduced important new legislation last week, which would allow the SBA to loan directly to small businesses during tough times. Many of our members use SBA programs to guarantee loans that fund ongoing growth and job creation. The proposed changes represent an important backstop for small businesses when commercial credit dries up, as has occurred now.”

Without question, U.S. small companies play an integral role in the American economy. The majority of American job growth and innovation comes from small companies. 90% of U.S. businesses have fewer than 20 employees, yet are responsible for the overwhelming majority of all new jobs in America. Additionally, small businesses produce 13 times more patents per employee than large companies.

But perennial challenges remain. Despite some positive economic indicators, many small businesses cannot find credit or get access to needed capital to grow their businesses. Moreover, burdensome systemic hurdles impede small IT firms and other small enterprises as they try to compete in the expanding and complex government procurement marketplace.

This must change. “Technology companies, especially small, growth oriented technology companies, provide high-wage jobs and critical innovations that bolster American GDP and our worldwide competitiveness,” said Oli Thordarson, Chairman, Technology Leadership PAC, a bipartisan California-based technology group. “Legislative or regulatory action that opens up the procurement process and provides growth capital to small businesses will help thousands of companies create sustainable, high-skill employment for Americans.”

A core concern of the two groups centers on improving access to ARRA procurement opportunities. Bearing this out, a recent survey conducted by the two groups found that most small IT businesses feel the ARRA has not, and likely will not, benefit them in this recovery.

“The survey shows a disconnect between the intent of the ARRA and the experience of our combined membership,” noted Kramer. “Among other findings, nearly 90% of those surveyed believe the law has had virtually no effect on their current business. And though the administration projects the lion’s share of ARRA funds to arrive in 2010, over the next 12 months a combined 67% either do not expect, are not sure, or feel that those opportunities are not applicable to them.”

“In short,” added Thordarson, “our guys feel cut out of this picture. What’s so frustrating, though, is the knowledge that their products and services provide the very tools that most help high growth sectors like health care and education contribute to a faster economic recovery.”

What’s the solution?

“Thankfully, we see some hopeful signs on the horizon,” stated Kramer. “Businesses large to small have begun modest purchase of needed IT upgrades. Policy makers also better recognize the importance of small IT companies to the health of our economy. Still, important work remains. Breaking down the hurdles to compete for federal contracts and providing better access to capital for emerging companies represent significant steps toward producing high-paying jobs and cutting-edge technology that will help America through, and beyond, these trying times. ”

About TL PAC

TL PAC is a bipartisan organization supported by small technology companies. Its mission is to support state and federal policy issues vital to innovation, competitiveness and entrepreneurship in the technology sector. In 2008, high-tech firms employed nearly six million workers nationwide; a significant number of whom are employed or under contract with small technology companies.

About CompTIA

CompTIA is the voice of the world’s information technology (IT) industry. Its members are the companies at the forefront of innovation; and the professionals responsible for maximizing the benefits organizations receive from their investments in technology. CompTIA is dedicated to advancing industry growth through its educational programs, market research, networking events, professional certifications, and public policy advocacy. For more information, please visit www.comptia.org.