Autumn Small Business Forum

US Federal Small Business Administration (SBA) Commissioner Guo Manli was invited by the Chinese Chamber of Commerce in New York on October 12 to hold a series of lectures on how small businesses can do business with the federal government. Guo Manli said that the federal government has an annual purchase of 500 billion yuan. All government departments have to allocate 23% of purchases to small businesses, 5% to women’s businesses, 5% to minority businesses, 3% to economically inactive areas (HUBZone), and 3% to injured veterans. Because of the quota, all government departments are often looking for these companies to do business. Guo Manli pointed out that companies can actually find many business opportunities from the government. Artists also have the opportunity to do business with the government, because the building of the Federal Building requires art to decorate. Doing business with the government does not rely on giving gifts to the back door, but building trust through long-term cooperation. According to the regulations, the purchase contract of 30 million to 100,000 yuan should be given priority to small enterprises, and if there is no qualified, then consider large enterprises. More than 100,000 contracts are given priority to ethnic minorities, veterans and women’s businesses. More than 500,000 contracts must be subcontracted to small companies. All purchases of more than 25,000 are posted on the Federal Government website (FBO.gov). Guo Manli pointed out that a Chinese had previously obtained a government contract through the agency, and had to distribute 60% of the profits to the agency. Later, through this website, the company won four FDA contracts within the year. Guo Manli suggested that Chinese businessmen should not win at low prices when bidding. The important thing is to rely on the quality of the products. Minority businesses need to be certified before they can do business with the government.

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