Feds Redirect Billions Intended For Small Businesses To Corporate Cronies

The federal government has been hard at work ensuring that the “little guy” is getting his “fair share.”

According the American Small Business League:

” . . . 61 of the top 100 businesses that received small business contracts during fiscal year 2010 were actually large firms.”

Really? That doesn’t make any sense. According to the U.S. Census Bureau, small businesses create 90 percent of all net new jobs.

Furthermore, data from the U.S. Bureau of Labor Statistics indicates that 98 percent of all American businesses have less than 100 employees. The U.S. Census Bureau also reports small businesses are responsible for more than 50 percent of GDP, 50.2 percent of private sector employment, 90 percent of exports and 90 percent of innovations.

So it would make perfect sense that the government divert contracts that would benefit these small businesses to companies like Raytheon, Lockheed Martin, AT&T, and General Electric. Right?

But wait! There’s more!

Contracts have also been awarded to foreign companies including British Aerospace (BAE), Rolls-Royce and Thales.

Foreign companies?

Not only is this a blatant disregard for the well-being of the U.S. economy, but it is also in direct violation of the congressionally mandated goal of awarding 23 percent of the total value of all contract dollars to small businesses. Because of the diversion of billions of dollars in small business contracts to large firms, the Small Business League estimates that legitimate small businesses actually received about five percent of federal contract dollars.

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