WASHINGTON — Sandra Wiggins worked for the federal government for more than 35 years. She was in human resources across seven different agencies, including 16 years at the Department of Defense. This year, she’s using that expertise to run her own company, hoping to cash in on the billions in federal contracts designated for woman-owned small businesses.
“I feel like I have done everything I wanted to do within the federal sector,” Wiggins, now CEO of Wiggins HR Consulting. “I understand federal resources, so it just makes sense for me to do my own thing and get in on the contracts.”
The federal government awards an average of $500 billion a year in federal contracts – 5 percent of which is set aside for woman-owned businesses, a standard set by the Small Business Administration’s Women-Owned Small Business Federal Contracting program in 2011. And yet, the federal government has never reached that goal.
In 2013, $15.4 dollars worth of federal contracts went to woman-owned businesses — only 4 percent of the total amount the government dished out that year, according to the SBA.
SBA’s original program had a $4 million and $6.5 million limit on contracts designated for woman-owned businesses. But most federal contracts were larger than the cap, effectively making it a disincentive. The Obama administration removed that cap last year, and the SBA says that change should help the government meet the 5 percent in 2014.
Another reason woman-owned small businesses aren’t getting more federal contracts may be an inability to grow as fast at male-owned businesses.
“Women small business owners are actually starting businesses at a higher rate than men, but are reaching the $1 million mark at a much lower percentage,” said Dayna De Simone, director of OPEN Live, the events arm of American Express’s small business division, which is partnering with the SBA to improve women’s odds.
“Our research shows that there are a few gaps in competence, confidence and connections, that women need to get them to the same level as men,” she said. “We feel like we can fill that gap.”
The new ChallengeHer collaboration between the Small Business Administration, Women Impacting Public Policy and American Express OPEN aims to educate and equip women to compete for government contracts.
During a recent ChallengeHer event hosted by the Department of Energy, N’Teasha Bronlee began seriously thinking about leaving her IT job at the Marine Corps and starting her own consulting company.
“I really wasn’t aware of all the opportunities that I have as a woman and as a veteran,” said Bronlee. “It’s overwhelming as all get out, but it’s an awesome feeling to know what they need for contracts.”
But the transition from federal employee to owner of a small business isn’t an easy one, according to former NASA Chief Information Officer Linda Cureton.
Cureton left NASA a year ago to start her own company, Muse Technologies. The company is working on organizational development projects with the Department of Housing and Urban Development and is waiting to hear back on several contracts it has bid on over the last year.
“When I made the decision to do this, I said to myself, ‘Why not open doors for myself,’” Cureton said. “I’d rather control my own destiny than work for somebody else and have my destiny put in their hands.”
Cureton advises federal employees hoping to start their own businesses to leave their ego at the door and always be willing to learn.
“It’s not just who you know,” Cureton said. “I pretty much know every CIO across the executive branch. And let me tell you, it doesn’t make a contract. You’ve got to have a good solution, have that solution articulated clearly and offer a good value.”
To help better understand what agencies are looking for in contractors, ChallengeHer events connect female business owners with contracting officers and small business program managers. The sponsoring partners have online tools for helping businesses get certified, identifying agencies to target, marketing and networking.
Wiggins advised women with small business ideas to understand the time needed to get a business up and running. She said it has taken her six months to be ready to vie for federal contracts, including completing the certifications needed for the SBA.
For Bronlee, meeting other female business owners like Wiggins and connecting with people at the Department of Energy was enough to convince her to start the process.
“I was seriously over-thinking it, and now that I’m learning more about it, it seems more doable, less scary,” Bronlee said.
“I was going to wait until next year, but now I want to start next week.”