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Thin is In

With new rules, the SBA hopes to cut big companies from its procurement numbers.

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This story appears in the April 2005 issue of Entrepreneur. Subscribe »

The SBA is cutting the fat from small-business procurement statistics. The changes would prevent small businesses that have grown large, or have been acquired by big business, from continuing to be counted as small businesses by federal agencies when reporting procurement data.

A study by the SBA's Office of Advocacy published last December found that, of the $54.1 billion in federal procurement funds supposedly paid to small businesses in 2002, $2 billion actually went to big businesses. Among the tubbies was Raytheon Co., which the Office of Advocacy said won small-business contracts worth $126.7 million.

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