Mar 29, 2024
The Vital Role of Small Businesses in Fueling USA Economic Growth
According to the research reports released by the Small Business Administration, small companies generate more than 1.5 million jobs easy year, and they account for rendering 64% of new jobs in America. Small businesses also contribute to about 44% of the US economic activity and have been maintaining stable economic growth, even during hard economic times. The Vital Role of Small Businesses in Fueling USA Economic Growth Big corporations generally get a lot of attention when it comes to creating new jobs. But small businesses also employ more people and also have more resilience when business times get tough. Small businesses are driving the USA’s economic growth in the following ways. Small Businesses Help to Support the Local Economy If an individual spends about $100 at a local business, it has been estimated that about 68% of the income stays within the local economy only. If the individual spends the same amount at a large business, then only 48% of it will stay within the local economy. Therefore, independent businesses help local economies grow through new jobs, revenue, services, etc. Small Businesses Offer Innovative Contributions for Businesses Small businesses not only contribute to the economic benefits of the company but […]
Mar 22, 2024
How the SBA Surety Bond Program Helps Small Businesses Win Contracts
The Small Business Administration is increasing its statutory contract limits for the Surety Bonds Program. This change is expected to increase revenue opportunities through small businesses contracting, thus supporting job creation and economic growth. The SBA has agreed to guarantee bid, payment, and ancillary bonds up to $14 million for federal contracts. Thus, the surety bonds will help small businesses win federal contracts by offering the customer a government-backed guarantee that the work will be done on time. SBA Guarantees Surety Bonds for Small Businesses The Surety bonds can help small businesses win business contracts by providing a guarantee to the customer. Many private and public contracts require surety bonds that the surety companies generally offer. The Small Business Administration offers surety bonds for some surety companies, that help small businesses, even if they need to meet the criteria for other sureties. Categories of Work that SBA Surety Bonds Cover Some businesses and business contracts would require surety bonds that cover certain situations. The SBA thus guarantees surety bonds that cover several major categories of work, and these are as follows. All performance and payment bond guarantees would be required to pay a fee of 0.6% of the contract price […]
Mar 11, 2024
Strategic Alliances: The Power of Joint Ventures in Federal Contracting
Strategic alliances are business arrangements between two companies that involve themselves in a mutually beneficial project while retaining their independence. Strategic alliances are less binding and offer exceptional options for the business to expand into new markets and enhance its product lines. Strategic alliances offer a competitive edge for businesses and allow two businesses to work towards a common goal that benefits both their operations. Strategic Alliances and Joint Venturing – How Do They Benefit the Business The primary objective of joint venturing in most industries is to venture into new markets and use unique technology to uplift their process. It has been estimated that more than 40% of the companies venture into strategic alliances to customize their legal, governance, and operational design. There are a number of reasons why a company may choose to enter into a strategic alliance, and they are as follows. Joint ventures are for those organizations who are waiting to make immediate financial impacts by leveraging the resources of another company. This way, they are also able to improve their short-term position in the market. Some companies may not have the capital to enter new markets. But, they can take advantage of other companies that […]