The Impact of Federal Procurement Certification on U.S. Female-Owned Businesses

Abstract

Governments, as dominant purchasers of goods and services, use procurement policy as a vehicle to facilitate the development ecosystem for small- and medium-sized enterprises (SMEs) (Ram and Smallbone, 2003). Historically, federal procurement policy has been viewed as a means to redress perceived market failures, such as discrimination and economic or social exclusion. More recently, supplier diversity is seen as providing direct and indirect benefits to government, such as: expansion of supplier diversity and customer bases; cost economies from increased competition in the supply chain; promotion of innovation and supplier efficiencies; and enhanced knowledge transfer and exchange (WEConnect International, 2012; Canadian Aboriginal and Minority Supplier Council, (CAMSC) 2006, 2015; Women Impacting Public Policy (WIPP), 2009). Today, the U.S. government is committed to directing at least five per cent of its spending to women- and minority-owned SMEs. This goal is yet to be realized.