Who Are the Real Small Business Advocates in America?

Can Legitimate Small Business Groups be Funded by Fortune 500 Firms?

Can an organization claim to represent the interests of small businesses and never lift a finger to stop the most highly publicized issue affecting small businesses for the last eight years? Can an organization funded by Fortune 500 firms truly represent small businesses?

In 2002, I convinced the Government Accountability Office (GAO) to launch the first federal investigation into the diversion of federal small business contracts to large corporations. In February of 2003, David Cooper, Director of GAO's Acquisition and Sourcing Management Office, told Washington Technology magazine that the GAO launched its investigation based on "information Chapman provided."

That first GAO investigation has prompted over a dozen other federal investigations and private studies into the diversion of federal small business contracts to Fortune 500 firms and thousands of other large businesses.

In 2005, the Small Business Administration Office of Inspector General (SBA OIG) released Report 5-15, which assessed the magnitude of the widespread fraud and abuses in federal small business contracting programs. Report 5-15 described the diversion of hundreds of billions of dollars in federal small business contracts to many of the largest companies in the world as, "One of the most important challenges facing the Small Business Administration and the entire Federal government today."

Since the results of that first GAO investigation were released in May of 2003, over 500 stories in the media have covered the issue. Every major newspaper in the country has reported on the problem. Dozens of magazine articles have covered it. It has been on every major television network, including: ABC, CBS, CNN, FOX and CNBC. Finally, the diversion of federal small business contracts to corporate giants has been discussed in more than 400 radio interviews by the American Small Business League (ASBL) staff.

Over a dozen federal investigations, more than 500 stories in the media over eight years, and over $100 billion a year diverted from small businesses and firms owned by women and minorities; surely any group that claims to represent small businesses, women or minorities must have done something to address a problem of this magnitude.

I challenge anyone to even find this issue mentioned anywhere on the websites of any so-called small business organization. Try and find any evidence of any effort to halt the fraud and abuse against legitimate small businesses. Virtually every national organization that claims to represent small businesses is actually funded by the very Fortune 500 firms that have hijacked hundreds of billions of dollars in federal small business contracts. Now that is a staggering conflict of interest. Many of these Fortune 500 firms have even lobbied to close the SBA and end all federal programs to assist small businesses and firms owned by women, minorities and veterans.

Some of these sham groups will attempt to tell us that their members don't care about this issue. Quite the contrary, try and find a single legitimate small business in America that thinks Fortune 500 firms should receive federal small business contracts.

Here's the truth; the ASBL is the only national organization that has fought to bring an end to the diversion of hundreds of billions of dollars in federal small business contracts to Fortune 500 firms and hundreds of other large businesses. The ASBL is the only national small business group that does not take money from Fortune 500 firms or big businesses. We only fight for small businesses.

We provided the information that prompted the investigations. We filed the lawsuits that forced the release of thousands of pages of government data proving that Fortune 500 firms have received billions of dollars in federal small business contracts. We prompted the overwhelming majority of stories in the media on this issue. We have fought the SBA, the White House, the Pentagon and Congress as they have refused to adopt legislation and policy to halt the rampant abuses. And now we are the only small business organization in America that has successfully had legislation introduced into Congress to finally halt the diversion of federal small business contracts to corporate giants. The passage of H.R. 2568, the Fairness and transparency in Contracting Act will bring an end to years of fraud, abuse and loopholes in federal small business contracting programs.

The passage of H.R. 2568 will also redirect over $100 billion a year in current federal infrastructure spending back to the 27 million small businesses where most Americans work. These firms are responsible for 50 percent of the Gross Domestic Product and over 95 percent of all net new jobs in America.

Don't be fooled anymore, if you want to discover who the real small business advocates are in America, look to see who funds these groups and ask who has fought to end the most widely publicized and investigated abuses against small businesses in the last decade.

If you are a small business owner, after you have discovered who the real small business advocates are, join them in their fight for American small businesses.

Follow Lloyd Chapman on Twitter: www.twitter.com/LloydChapman

Comments

[Read2know]

Yes the fox is in the hen house. It is just assumed that these organizations are small business advocates, but many are dependent on their funding from large businesses or corporations. So when a small business issue comes up that conflicts with their funder's concerns what do you think will happen?

[iluvwine]

The unfortunate truth is, there really aren't any "true" small business groups that aren't out to make a dollar, and if there were, they no longer exist because they couldn't afford to stick around. It becomes a win-win situation for so-called "small business" groups and large corporations, because what better PR campaign is there than for a world-ruling company such as AT&T to sponsor a sweet, innocent small business organization? I don't know much about the American Small Business League, but I would bet they are probably the most honest and truthful organization out there. Obviously, the ASBL is not funded by large corporations because they spend a majority of their time exposing those very corporations to contracting fraud.

[THEFINGMAN]

Wow, eloquently put Lloyd! I am disgusted with the inner workings of our government and big business. Often times I think what a great country we live in, and indeed it is but to say it is not corrupt is a joke. Keep doing what you are doing Lloyd. I speak to a minimum of 10 people a day regarding this issue, have sent letters to my local and state representatives and I will not stop until small businesses get what they deserve.

[Radar423]

"Pay no attention to the man behind the Curtain! I am the Great and Powerful OZ!!!!"

Sound Familiar? This is how the "Small Business" advocates have been puppeteering us for years, acting as if they are trumpeting our cause while they relax in their corporate provided hot tubs, snuggling up to their trophy wives/husb­ands/whate­ver they drug home that night relationships.

Government, by the people, for the people. Remember that phrase?

It is now a phrase that will be appearing on MythBusters next season.

NAFTA? The Iraq War? Giving small business funds to large corporations? Do you think the majority of Americans were behind those things? Big business and defense Contractors certainly were.

Maybe it's time for another tea party, because we are bordering on taxation without representation again. I have to admit that it would be more fun to land a big house on the Bad Witch though.

It is time to pull back the curtain and show who the real people are behind all these organizations supposedly behind small business in America.

[GrimJack]

we are seeing the same crap in the health care debate- the majority of the people want change and a health care option that will not send us into bankruptcy or get canceled at the first sight of a problem, but it seems that the buffoons in Washington have different plans...to­o bad most of the people do not pay enough attention to vote these clowns out of office every 2 or 6 years...

[Ashki]

I know it is hard for a lot of small businesses to see the truth out there. It took me a while to really understand it myself. How can any organization funded by large companies have the interests of small businesses at heart? Does that make sense to anyone? Wolf in sheeps clothing. I am a member of ASBL because I believe in the truth not some fantasy land. The Chambers of Commerce has done little to nothing for my business. I appreciate the mixers and free wine, but that has done very little to help keep my business doors open and pay my bills.

[iridium53]

Thanks very much for the information.

The Obama administration, by words and actions, have made it clear that they have no intention at all to provide support for Small Business. Every bit of their effort is focused on transferring taxpayer money to the biggest companies.

I think that small businesses are on their own. We and our employees cannot expect any support from the Obama administration.

Hope is not a strategy. People who own or work at small businesses are having their money sent to big companies by Obama and Bernanke. Recommend that all owners of and employees of small businesses vote their pocketbook at the next election.

[inthenitemare]

Did you even read the article?

This happened during the Bush administration. Remember them? And the republican congress. Remember them? They were the ones that made these unfair contrct diversions possible. They're the ones always proclaiming that they're for the small business owner; the "Joe the plumber's" of the world. Yet this all happened under their watch, and not by accident.

It is now the democratic congress trying to pass legislation to reverse this atrocity, and I know that Obama would sign such legislation.

Your whole comment above shows your complete lack of intellectual and moral honesty. To be expected from an empty headed hater.

[GrimJack]

while I agree that with your comment that the criminals in the Bush Administration exacerbated this problem greatly, the sad fact is that the Obama Administration, while promising to fix this problem during the campaign, has not kept that promise and allowed billions of dollars in small business contracts to continue to go to the large contractors. While there are a few in Congress interested in actually helping small businesses by trying to pass legislation that will address the issue, it seems to have fallen on deaf ears by the Obama administration.

Blind partisan loyalty to a party will result in the same abuses perpetrated by the Bush administration, except it will be done by the Democrats and Obama.

Open your eyes to the problems and realize that, unfortunately, those who are currently in power do not have a better track record on small business issues than those who just left power.

This is a small business issue and will require those who really want to help small businesses come together and work with congressional members on both sides of the isle to get real reform legislation passed, and I hope Obama would sign it, but I will not hold my breath

[giddeeup]

I'm not a fan of the Bush administration, but I've yet to see Obama do squat for small business.

I would LOVE it if Obama would sign such legislation, but I don't think he will!