THE STRATEGY SMALL BUSINESS

By: R.D. Gibson

There is nothing ‘small’ about ‘small business’. According to a United States Small Business Administration Office of Advocacy Frequently Asked Questions sheet, a small business is defined as an independent business that employs fewer than 500 employees. Additionally, there are size standards that give way for small businesses to assess their eligibility for government programs, like contracting opportunities and SBA loans. This is based on their industry and economic activity as stated in Title 13 Chapter 1 Part 121 of the Code of Federal Regulations in the U.S. National Archives and Records.

Currently, there are over 33 million small businesses in the United States, and comprise 99.9-percent of all firms. For perspective, in Guam, there are over 3,400 small businesses that employ over 61,000 people, as laid out in the US SBA Office of Advocacy 2022 Small Business Profile.

However, in a February 15, 2022 fact sheet from the White House, it was shared that there is a growing concern regarding national and economic security based on competition within the defense industrial base (DIB). “The report emphasizes that promoting competition is a top priority for DoD and outlines a series of actions that DoD will pursue to rebuild its competitive bench, lower costs for taxpayers, and safeguard our national security,” as stated in the fact sheet.

The DIB is a tapestry of companies that provide services and goods to the United States Department of Defense. In the Fact Sheet, it highlighted how the Biden-Harris Administration would work toward promoting competition to combat the ‘consolidation’ that has - for lack of a better word - constrict services.

The White House cited how the number of aerospace and defense prime contractors shrank from 51 to 5 in thirty years. “Today, 90% of missiles come from 3 sources,” it stated in the sheet, which, in the bigger picture, leads to a dependency on a few companies for services and goods needed for the Department of Defense to do its job.

But, more pointedly, the White House’s fact sheet emphasized the number of small businesses in the DIB reduced by 40-percent in the last ten years. In a March 24, 2023 release from the U.S. Department of Defense, Farooq A. Mitha, the Director of the Department of Defense (DoD) Office of Small Business Programs (OSBP) stated, “This is an economic and national security risk for our nation," he said. "We risk losing mission-critical domestic capabilities, innovation and strong supply chains,” Mitha emphasized. “To respond to this, the department is working to strengthen our small business supply chains, increase competition and attract new entrants."

The March 24 DoD Release also mentioned that sometimes small businesses also face “cyber security requirements and staying clear of foreign ownership control and influence.” At its most basic, the Strategy is part of the Department’s mission to minimize these and other difficulties that small businesses may face when attempting to work with DoD.

On January 26, 2023, the US Department of Defense released its Small Business Strategy that lays out a plan to augment and bolster its relationship with small businesses. The release states, “The strategy promotes a strong, dynamic, and robust small business industrial base by focusing on reducing barriers to entry, increasing set-aside competitions, and leveraging programs to grow the industrial base.”

In its opening message from Secretary of Defense, Lloyd J. Austin III, the U.S. Department of Defense Small Business Strategy states that small businesses experience difficulties working with DoD, which include no central point of entry and complex rules.

Sec. of Defense Austin continued, “If we do not take action, we risk losing mission critical domestic capabilities, stifling competition and innovation, and potentially weakening our supply chains.”

In the January DoD release, Deputy Secretary of Defense Dr. Kathleen Hicks shared, “Reducing barriers and creating more opportunities for small businesses will allow us to expand, innovate, and diversify, increasing our warfighter advantage, strengthening our supply chains, increasing competition in our marketplace, and growing our economy here at home” expanding on the importance of small businesses in their contributions to DoD’s needs.

The United States Department Of Defense Small Business Strategy

The United States Department of Defense Small Business Strategy itself has three core objectives, which include: “Implement a Unified Management Approach for Small Business Programs and Activities;

“Ensure the Department’s Small Business Activities Align with National Security Priorities; and

“Strengthen the Department’s Engagement and Support of Small Business.”

The three objectives seem to all be rooted in some level of collaboration and communication, augmenting those throughout the Department, its management, the small businesses, and available programs. First, the Strategy calls for an implementation of a focal point where small businesses and admittedly ‘even members of the DoD acquisition workforce’ experience challenges. businesses and admittedly ‘even members of the DoD acquisition workforce’ experience challenges. supported through reliable logistics,” the Strategy asserts. Further, it states “agile and innovative small businesses are integral to addressing new and continuing national economic security.” supported through reliable logistics,” the Strategy asserts. Further, it states “agile and innovative small businesses are integral to addressing new and continuing national economic security.” primary strategic goal of this Small Business Strategy to establish a management structure that aligns small business programs and small business-related efforts across the Department,” as stated in the Strategy. Additionally, part of the group's goals include enhancing communication and collaboration between the small business programs through forums and discussions regarding topics, like unifying the small business policy and mitigating challenges entering the defense marketplace. the Strategic document, it defines three types of small business programs it hopes to synergize and ‘increase the effectiveness of the entire DoD small business enterprise.’ These small business programs include Small Disadvantaged Businesses, women-owned Small businesses, Service-Disabled Veteran-Owned Small Businesses, small business technology development, funding, and assistance programs, like the Defense Research and Development Rapid Innovation Programs, and other resources and tools.

Hence the first objective creates a small business integration group headed by the Director of the DoD Office of Small Business Programs. The Director has many responsibilities, namely being an advocate for small businesses within the DoD with regard to DoD and national security Policy in the Office of the Secretary of Defense. Further, the group has representation from the Office of the Under Secretary of Defense for Acquisition and Sustainment, the Office of the Under Secretary of Defense Research and Engineering, and the Directors of the Office of Small Business Programs.

Hence the first objective creates a small business integration group headed by the Director of the DoD Office of Small Business Programs. The Director has many responsibilities, namely being an advocate for small businesses within the DoD with regard to DoD and national security Policy in the Office of the Secretary of Defense. Further, the group has representation from the Office of the Under Secretary of Defense for Acquisition and Sustainment, the Office of the Under Secretary of Defense for Research and Engineering, and the Directors of the Office of Small Business Programs.

“A primary strategic goal of this Small Business Strategy is to establish a management structure that aligns small business programs and small business-related efforts across the Department,” as stated in the Strategy. Additionally, part of the group's goals include enhancing communication and collaboration between the small business programs through forums and discussions regarding topics, like unifying the small business policy and mitigating challenges entering the defense marketplace.

In the Strategic document, it defines three types of small business programs it hopes to synergize and ‘increase the effectiveness of the entire DoD small business enterprise.’ These small business programs include Small Disadvantaged Businesses, women-owned Small businesses, Service-Disabled Veteran-Owned Small Businesses, small business technology development, funding, and assistance programs, like the Defense Research and Development Rapid Innovation Programs, and other resources and tools.

Though the DoD has seen an instability and a misalignment of small business programs focusing on investing in technology, the Small Business Strategy works to correct these by monitoring long-term planning and integration across available programs. A few technology and manufacturing programs cited include the Mentor-Protege Program, Small Business Innovation Research (SBIR), Small Business Technology Transfer (STTR), and Rapid Innovation Fund, which have all faced some kind of restriction from scaling to time limitations to non-appropriation.

Though the DoD has seen an instability and a misalignment of small business programs focusing on investing in technology, the Small Business Strategy works to correct these by monitoring long-term planning and integration across available programs. A few technology and manufacturing programs cited include the Mentor-Protege Program, Small Business Innovation Research (SBIR), Small Business Technology Transfer (STTR), and Rapid Innovation Fund, which have all faced some kind of restriction from scaling to time limitations to non-appropriation.

The last strategic objective is centered in engagement, outreach, and support of small businesses, but in the grander scheme of things, making work with the government agencies more accessible, in line with Presidential Executive Order 14058. More specifically, the third objective points to strengthening its relationships with small businesses, more specifically in the small business programs available and clearly describing contracting opportunities for easy wayfinding; at its core, this is where the aforementioned Apex Accelerators play a vital role.

The last strategic objective is centered in engagement, outreach, and support of small businesses, but in the grander scheme of things, making work with the government agencies more accessible, in line with Presidential Executive Order 14058. More specifically, the third objective points to strengthening its relationships with small businesses, more specifically in the small business programs available and clearly describing contracting opportunities for easy wayfinding; at its core, this is where the aforementioned Apex Accelerators play a vital role.

These collaborative and engagement tools include the ninety-six APEX Accelerators, formerly Procurement Technical Assistance Centers, throughout the country. These APEX Accelerators are a way for small businesses better prepare themselves and find opportunities with the Department. Additionally, there is a Mentor-Protégé Program, which has seasoned businesses help new small businesses with their development and access to opportunities in the DoD through training and counseling.

These collaborative and engagement tools include the ninety-six APEX Accelerators, formerly Procurement Technical Assistance Centers, throughout the country. These APEX Accelerators are a way for small businesses to better prepare themselves and find opportunities with the Department. Additionally, there is a Mentor-Protégé Program, which has seasoned businesses help new small businesses with their development and access to opportunities in the DoD through training and counseling.

As over 70-percent of the industrial base is composed of small businesses, supply chain concerns arise with cybersecurity. Part of this objective includes additional resources, specifically training promoting cyber resilience. “Cybersecurity threats to the DIB keep expanding in number, frequency, and severity,” the Strategy cites. Additionally, this training will address the protection and security of sensitive DoD information and supply chain. Part of this training includes Project Spectrum, whose “mission is to improve cybersecurity readiness, resiliency, and compliance for small/medium-sized businesses and the federal manufacturing supply chain.”

As over 70-percent of the industrial base is composed of small businesses, supply chain concerns arise with cybersecurity. Part of this objective includes additional resources, specifically training promoting cyber resilience. “Cybersecurity threats to the DIB keep expanding in number, frequency, and severity,” the Strategy cites. Additionally, this training will address the protection and security of sensitive DoD information and supply chain. Part of this training includes Project Spectrum, whose “mission is to improve cybersecurity readiness, resiliency, and compliance for small/medium-sized businesses and the federal manufacturing supply chain.”

The first objective details collaboration, synergy, and unification, while the second objective primarily focuses the DoD’s desire and need to align small business activities with its national security priorities. The second objective details the need for at-the-ready capabilities given the geopolitical climate of the world, the United States and its allies. “Capability development, production, and fielding should be marked by adaptability, diversity, and speed of design and delivery and then sustained and

The first objective details collaboration, synergy, and unification, while the second objective primarily focuses on the DoD’s desire and need to align small business activities with its national security priorities. The second objective details the need for at-the-ready capabilities given the geopolitical climate of the world, the United States and its allies. “Capability development, production, and fielding should be marked by adaptability, diversity, and speed of design and delivery and then sustained and

Further, the DoD is also focused on educating small businesses about the risks of foreign ownership, control, and influence, also known as FOCI, which poses threats to economic and national security. Part of the implementation of Strategic Objective three includes initiating a working group to reduce the possibilities of FOCI risks, among other security topics.

Further, the DoD is also focused on educating small businesses about the risks of foreign ownership, control, and influence, also known as FOCI, which poses threats to economic and national security. Part of the implementation of Strategic Objective three includes initiating a working group to reduce the possibilities of FOCI risks, among other security topics.

The Small Business Strategy is a lengthy document to say the least. It’s filled with jargon and examples, acronyms on almost every page, and detailed descriptions of the objectives of the strategic plan that above all else is meant to make the processes of working with the DoD a lot easier. This requires a lot of input, education, outreach, and coordination among and with the DoD, the DIB, and potential small businesses. “Recruiting more small businesses into the DIB means a more advanced military, stronger supply chains, and a more equitable and prosperous national economy,” it states in the Strategy.

The Small Business Strategy is a lengthy document to say the least. It’s filled with jargon and examples, acronyms on almost every page, and detailed descriptions of the objectives of the strategic plan that above all else is meant to make the processes of working with the DoD a lot easier. This requires a lot of input, education, outreach, and coordination among and with the DoD, the DIB, and potential small businesses. “Recruiting more small businesses into the DIB means a more advanced military, stronger supply chains, and a more equitable and prosperous national economy,” it states in the Strategy.

Overall, the strategy calls for collaboration, synergy, and a bit of foresight and planning. As small businesses contribute significantly to the nation’s security and economy, this is an important, big step for the Department of Defense as it works to become more accessible to the small business community throughout, while also strengthening

Overall, the strategy calls for collaboration, synergy, and a bit of foresight and planning. As small businesses contribute significantly to the nation’s security and economy, this is an important, big step for the Department of Defense as it works to become more accessible to the small business community throughout, while also strengthening their already-extensive DIB for the future. The Strategy states, “The Department is working to lay a foundation for the kind of Industrial Base needed to win in the 21st century…this small business strategy will unlock the full potential of small businesses and strengthen our national security.” their already-extensive DIB for the future. The Strategy states, “The Department is working to lay a foundation for the kind of Industrial Base needed to win in the 21st century…this small business strategy will unlock the full potential of small businesses and strengthen our national security.”

The end of April will ring in National Small Business Week - April 30, 2023 to May 6, 2023; a time where we don’t get to just celebrate their innovation and talent, but their contributions to our communities. Small businesses have been described as many things, including the backbone and driver of economies. This strategy puts extra emphasis on not just their contributions, but the potential they have toward innovation, security, and their impact on the economy and security.

The end of April will ring in National Small Business Week - April 30, 2023 to May 6, 2023; a time where we don’t get to just celebrate their innovation and talent, but their contributions to our communities. Small businesses have been described as many things, including the backbone and driver of economies. This strategy puts extra emphasis on not just their contributions, but the potential they have toward innovation, security, and their impact on the economy and security.