Setscale, a company specializing in purchase order financing, has published a report indicating that over half of US small businesses are not aware of federal government contracts. This lack of awareness results in an estimated annual loss of $84 billion. The report surveyed US small business owners to understand their financial challenges, including their familiarity with federal government contracts. It revealed that 52% of respondents were not aware of the contracts the US federal government awards to small businesses each year.
Despite this, a significant 71% of the businesses surveyed recognized the value and reliability of government contracts. However, 52% confessed they were not aware of the specific contracts they could access. Additionally, 29% were completely unaware that the federal government awards contracts to small businesses. This lack of knowledge is causing businesses to miss out on valuable opportunities, given the federal government’s record-high investment in small businesses.