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Aspiring 8a

Federal Certification Squeeze

Federal sales have grown in the small business segment of the federal marketplace. A decade ago, it was difficult for the SBA to attain the 23% Congressionally mandated goal. In 2020, 26% of federal discretionary spending was with small business.

Although sales are growing for small business, another trend is taking hold. SBA/VA Certification holders continue to grow market share in the small business market. SBA Certification Holders held approximately 75% of the market in 2011, now a decade later that number is 85%. (See graph below)

If we look at this percentage growth in terms of Federal Certifications, we see that the 8(a) Certification has captured the lion’s share of that growth. In 2011, the 8(a) Certification was 35% of small business sales, and in 2020 it is now 41%. (See graph below)

The new reality is that the more than 5.500 8(a) firms have a tremendous advantage over their non-certified competitors that number in the hundreds of thousands of businesses. For firms looking to grow their business by utilizing federal contracts, the numbers show that obtaining an 8(a) Certification is likely the most important thing a firm can do.

If you have more questions on the 8(a) Certification or any other federal certification or VA verification, I always recommend contacting an industry expert such as ez8a or Advance 8a. Neither charge for an initial consultation.

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