I am a small businessman and I was really surprised when I heard about some of the things that the Small Business Administration has been doing.
There are allegations that they have allowed large corporations to illegally list themselves as small businesses both domestically and internationally.
Why would they do that? They are supposed to help small businesses.
Well, the government agencies that are supposed to allocate a certain percentage of their purchasing budget to Woman owned, minority owned and Small Businesses in general would prefer to give large contracts to large vendors. It is a pain in the neck for them to find qualified small businesses to work with. So , they have found a way around it by selecting large Fortune 500 companies who then fill in the SBA paperwork and claim that they are a small business. But they are not and the SBA knows they are not. Yet, they allow this to continue.
Enter the Barack Obama administration. If things were not bad enough for small businesses trying to get some of the Federal Govt contracts, Obama had his people remove the data fields on the SBA forms that clearly identified whether or not a company was a part of a larger company, etc. In other words, it is no longer easy to examine these forms and be able to tell whether the company is a large or small company! Outrageous!
It turns out that a high percentage of the contracts and loans that are processed by the SBA actually go to Fortune 500 firms and to large foreigh firms as well (like Rolls Royce, a UK company, for example).
This is a majopr reason why small business is suffering after the financial breakdwn of 2007-2009 period. The money that was available was not going to them from the SBA, or the banks or the large Federal contractors who are required to spend a certain percentage with Small Business.
I used to be a procurement executive and I know how purchasing departments manipulate this data and now Obama has made it easier than ever before to hide the truth. The SBA is the regulator for this activity and they are in bed with big business! There is a movement afoot to make them part of the Commerce Dept. (fortune 500 companies) which would be another disaster for small business. Commerce does not care about small business.
By the way, small business is responsible for 90% or more of the job growth in the USA, not the Fortune 500 companies. But the Fortune 500 companies are responsible for 90%+ of the political payoffs and bribes.
Is this making more sense now to you? The Govt helps big business get all of the funds including those earmarked for small business and then the govt. gets the kickbacks in the form of political donations and bribes. This is like a perptual motion machine!
The problem is that 70% of the "market" is driven by consumers and Fortune 500 companies are split between corporate and consumer markets, so if the consumer markets are not growing because small businesses are not doing well and job growth is enemic, then the entire system eventually chokes.
But why would the Fortune 500 ever concern itself about the facts of how the system really works when they can pump the money well dry like they have been doing for the last 15 or more years?