Small business awards reached an all-time peak in 2024, according to various agencies.
The Small Business Administration (SBA) recently released its annual small business scorecard, revealing that the federal government surpassed its overall small business contracting goals in 2024, setting new spending records.
In 2024, women-owned small businesses won $31.7 billion, an increase of $800 million over 2023. Agencies spent a record $69.6 billion through small business set-aside contracts, topping the government's record in 2023 by $5 billion. The total obligations for Small Disadvantaged Businesses (SDBs) increased to $78.3 billion, up from $59 billion in 2020 and $76.2 billion in 2023.
However, not all socio-economic subcategories met their goals. Women-owned small businesses, for example, missed their 5% goal, achieving 4.97%. Similarly, HUBZone small businesses also missed their 3% goal, with agencies awarding 2.75%.
The government reached its goal for awarding at least 5% of all contracts to veteran-owned service disabled small businesses in 2024. Agencies such as the General Services Administration, Department of Education, Department of Health and Human Services, Department of Veterans Affairs, Social Security Administration, and Department of State have slightly increased their overall small business contracting goals for FY 2025 compared to 2024.
The Rule of Two, which requires agencies to set aside contracts for small business only competitions when market research shows that there are at least two qualified bidders, is critical to preserving the small business industrial base. The Office of Management and Budget issued guidance on creating a more diverse and resilient federal marketplace.
The SBA's scorecard comes as hundreds of small firms expressed their support for the Protecting Small Business Competitions Act. Steve Koprince, a retired federal contracts attorney, expressed on LinkedIn that the amount spent with women-owned small firms was "extremely underwhelming." However, the women-owned small business set-aside and sole source award obligations increased from $1.70 billion in 2023 to $2 billion in 2024.
Over 1,000 firms became certified as HUBZone firms, setting a record for the year with the highest number of approved applications in the program's history. Governors of 19 states added over 300 rural Governor-designated HUBZones to the HUBZone map.
The federal government obligated about $445 billion in FY 2024, underscoring the scale and impact of these small business goals. Despite some policy shifts affecting disadvantaged business programs, the federal government continues to prioritise small business participation, reflecting in the ongoing focus on small business contracting goals.
The federal government's focus on small business participation is evident, with the federal workforce on the verge of a reimagined landscape, as women-owned small businesses are poised to secure more finance in business ventures. For instance, in 2024, women-owned small businesses won $31.7 billion, an increase from $2.3 billion in 2023. Moreover, federal contracts awarded to these businesses will likely continue to grow, with several agencies aiming to increase their small business contracting goals for FY 2025.
