The Economical Power of the 8(a) Business, A Discussion of its Relationship with the Department of Defense
Respectfully Submitted To:
Richard F. Tyler, Ph.D., Professor
In Fulfillment of the Course:
Business Communications, BPA 162
Bridget
June 2000
CHAPTER 1
Introduction
Subject
The subject of this paper is the economical power of the 8(a) business, specifically, to focus on its relationship with the Department Of Defense. I will discuss the definition of the 8(a) business classification. I will also discuss why the Department of Defense supports these businesses, and probe into the determination it takes for these businesses to succeed in their dealings with the Department of Defense. I will hypothesize on the following, what general characteristics do these 8(a) businesses have? And why are these businesses set apart from the rest of the existing corporations?
Purpose
The purpose for writing this paper is to gain more knowledge in this area. Currently employed at one of these 8(a) companies will help clarify the benefits, such as being described as this classification, as well as its drawbacks. The Department of Defense does a majority of its business deals with 8(a) businesses, and this paper will discuss the why and how of this major client of the 8(a) business. The hypothesis is that, the Department of Defense supports the small Mom-and Pop operations, because these operations comprise the majority of businesses close in the vicinity to the Department of Defense (DOD). The unique characteristics of the 8(a) business classification drives the Department of Defense to bring its needs to them, or, in turn, the 8(a) business brings their unique services to the Department of Defense.
Scope
The definition of an 8(a) business is a business which is owned by women and minorities. Specifically, a small business with a small facility and a small amount of employees. The majority of people employed are women in managerial positions and other minorities in positions of significant status. According to the Small Business Act, "the term socially and economically disadvantaged small business concern (section 8(a)) means any small business concern which is at least 51% owned by one or more socially and economically disadvantaged individuals" (Small Business Act, page 60). Economically disadvantaged individuals are those socially disadvantaged individuals whose ability to compete in the free enterprise system have been impaired due to diminished capital and credit opportunities, as compared to others in the same business area who are not socially disadvantaged.
Depth
The general characteristic of an 8(a) business gives it a compromised advantage in doing business with the Department of Defense. According to the Business Women's Network Interactive BWNi.com, "the purchasing power and economic clout of women is growing exponentially as the number of working women rises, and they move into higher paying jobs." The non-verbal communication skills, as well as the verbal communication skills of women, are key players in business dealings. Cheryl Hamilton, the author of Communicating For ResultsA Guide For Business and the Professions, states, "female communicators typically are better at decoding nonverbal cues in messages, view communication as a cooperative tool, make listening noises to show interest and attention, and work harder to maintain discussions"(Hamilton, 194). The 8(a) business succeeds in the workforce because of its good communication skills overall and deciphering the business messages that they receive.
CHAPTER II
Psychological Perspective
The psychological analysis of the 8(a) business is an interesting case study. According to an article called Women and Small Business, "More than half of women business owners (53 percent) emphasize intuition or right-brain instead of left-brain which emphasizes analysis, the processing of information methodically, and developing procedures. Intuitive processes often allow someone to see opportunities that are not readily apparent and to know if they are right without the use of reason and analysis" (American Women's Economic Development Corporation, page 1). A successful 8(a) business processes large quantities of information for their client's daily. They then develop contractual procedures and proposals for their client, the Department of Defense, to suit their requirements. The 8(a) business must know their client well in order to meet their needs. For example, if the Department of Defense suggests that they need eighty personnel to be cleared, the 8(A) business will pick up on that detail and then provide that agency with eighty cleared personnel. In essence, the 8(A) business must be attuned to the Department of Defense's needs.
In order to be successful, the 8(a business needs the following characteristics. They need to have knowledgeable staff and knowledgeable Company Executive Officers. They need to have the 8(a) business certification in hand, and to familiarize themselves with Section 8(a) of the Small Business Act. They also need to promote themselves to the government as often as possible, so that others will recognize their certification, and lean toward them for business opportunities, instead of larger corporations. If the 8(a) business is aggressive in its business tactics, then they will succeed.
CHAPTER III
Methodology
The majority of sources for this term paper came from articles found on the internet through the search engine otherwise known as Yahoo! The first article was from the Business Women's Network Interactive, or BWNi.com. The Business Women's Interactive provided statistical information needed for this paper.
Another article that determined the definition of the 8(a) business was entitled SBA - Small Business Act. This provided a clear understanding of the terms frequently used, including the classification term 8(a) business.
A third article was called Women and Small Business, Why Women Are Good At Small Business. This provided some background reading, as did many other articles
that were read.
The textbook used in class called Communicating for Results, A Guide for Business & the Professions provided more background reading, and ideas from this reading were incorporated into this discussion as well. The Internet is a large database comprised of smaller databases and networks. This enabled current information and statistics through various websites on the topic. Other articles from the Internet included Valuing Diversity Enhances Productivity, by
Michael L. Wheeler, and The New Glass Ceiling, Understanding the Dynamics; New Strategies to Advance by the website called Advancing Women.
CHAPTER IV
Discussion
According to The New Glass Ceiling, Understanding the Dynamics; New Strategies to Advance, by the website called Advancing Women, "for those women attempting to move to upper management, one must seek more, push for more and demand more. One must look for companies, customers, who are family friendly and women friendly"(page 3). The government and the Department of Defense support 8(a) businesses by having created the Small Business Act. The Small Business Act protects small businesses and sets them apart from larger, more financially well off, Fortune 500 companies. Without the guarantees and programs initiated by the Small Business Act, these Mom-and-Pop businesses would have less of a competing edge in the workplace.
Conclusion
8(a) businesses, because of their general characteristics, will become the majority of businesses in America. 8(a) businesses have the opportunity to grow and incur financial gain as the government buys from these private companies. The Department of Defense continues to support 8(a) businesses, and be their largest client. The creation of the Small Business Act protects them and gives them an opportunity to gain credit in the financial world. Eventually, women and minorities in the workforce will soon become the majority in managerial positions.
Section of Rough Draft
Small, disadvantaged businesses, as classified under the Section 8(a) of the Small Business Act, have special privileges when it comes to selling goods and services to the government and the Department of Defense. The government and Department of Defense are two of the main customers/clients, which small businesses supply goods and services to. Small businesses are a majority in the United States, and are a large part of the economy. Small, disadvantaged businesses are generally characterized as being owned by minority groups or women, and not having a lot of money when they started out as a business. However, when small businesses such as these undertook the government and Department of Defense as clients, their economic value grew at a very fast rate, so rapidly, that they eventually became the majority of the economy and the stock market. Small Mom and Pop operations eventually made top dollar for some or all goods and services. The government endorsed these operations, which helped the small businesses grow also. The government endorsement helped these businesses gain widespread reputation in offering specialized work.
WORKS CITED
Advancing Women, Women and Workplace Strategies. 1996.
Advancing Women Network. 24 February 2000
http://www.advancingwomen.com/wk_glassceiling2.html
Business Women’s Network Interactive BWNi.com. Business Women’s Network
Interactive. 2 May 2000
http://www.bwni.com/about/wowfacts.shtml
Hamilton, Cheryl. Communicating for Results, A Guide for Business & the
Professions. Belmont: Wadsworth Publishing Company, 1997.
SBA-Small Business Act. 27 April 1999. Small Business Administration.
3 May 2000
http://www.sba.gov/regulations/sbaact/sbaact.html">
Valuing Diversity Enhances Productivity. Wheeler, Michael L. 1 March 2000.
The Five O’ClockClub Website. 3 March 2000
http://www/fiveoclockclub.com
Women And Small Business, Why Women Are Good At Small Business April 1997.
American Women’s Economic Development Corporation.
Small Business Website. 20 March 2000
http://www.onlinewbc.org/docs/starting/wmn_good_sm_bus.htm
Business Communications-Anne Arundel Community College
