Small business always come with their own challenges, pitfalls, and struggles, but a small business that is trying to do business with the federal government can experience completely new difficulties that are very different than those they faced solely in the commercial sector. These difficulties can vary depending on what industry your company is in, the current economic condition, and your financial capacity to manage and grow contracts. Though they vary, in conversations I have had lately with small business owners I have found frustration over their inability to establish financial lines of credit and attain loans to grow their businesses in order to support federal projects. This seems to be a common problem among small businesses and can be a great hindrance to their success with a federal or any contract.

Have you experienced difficulty establishing a line of credit and receiving loans? Let GOVtips know! Post in the comment box below what kind of products or services your company provides and let us know the specifics. From your company's experience, do you think those challenges are specific to whether a small business is product based or service based? What other struggles and solutions have you found in dealing with the government, and what problems are you currently facing? What do you think are the some other big challenges that are facing small businesses looking for or dealing with federal contracts?

As more businesses, especially small, are looking for more opportunities in a shrinking economy the world of federal contracts are looking more and more appealing. The maze of small business certifications can be very confusing. When you add to the mix terminology that gets into the daily conversations that are incorrect, you have the perfect storm of confusion in a marketplace that can already be a challenge for the new comers. Make a point of understanding the difference between the uses of the term 'set aside' versus 'sole source' in federal procurement. People have the tendency to use the term set aside thinking and meaning sole source. A set-aside means that the government can determine that there are enough of one type of companies…let's say for example 'small' to be able to 'set aside' a requirement for only small businesses to compete for that work. It does not mean that a requirement will be 'sole sourced' or 'directed' or awarded to a firm without competition. It means that eligible small businesses can compete on a more level playing field to compete among themselves for a specific requirement. I have found this confusion in terminology even used by well intentioned and seasoned government employees.

Welcome to the GOVtips blog.  I have set this up so businesses who are interested in sharing their experience in doing business with the federal government can post their lessons learned to be shared with others.  We are looking for your thoughts and ideas on how the process can be made better for the good of all.