MBN USA

February 22, 2023

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The HigherGovs study shows small businesses received 23.2% of all federal contracting dollars in government fiscal year 2022

New York — A new report by government market intelligence platform HigherGov shows small businesses received 23.2% of all federal contracting dollars in government fiscal year 2022, a record $158.7 billion, representing a 3% increase from the prior year.  However, continuing a long-term decline, only 58,681 small businesses received contracts in 2022, fewer than half that received contracts in 2010.  

Women, Minority Owned-Small Businesses Lag Behind

The Biden administration has made increasing participation in federal contracting by women- and minority-owned businesses a priority.  However, in 2022 women-owned, Black-owned, and Hispanic-owned small businesses all saw decreasing or stagnating awards as a percentage of total contracts, the percentage of dollars awarded to small businesses, and the total number of small businesses receiving awards.

 Growing Opportunities for Small Businesses

Despite the decrease in the number of small businesses receiving awards, the average small business received $2.7 million in 2022, a 9% increase over the prior year.  The level of contracts specifically set-aside for small businesses also increased sharply.  Reinvigorated efforts by the Department of Defense and other agencies to expand the small business contracting base may make now a strong time for small businesses to enter or expand in the government market.

The full report can be found here.

About HigherGov

HigherGov provides comprehensive government contracting and grant market intelligence for contractors, grant recipients, and their advisors.