Number of First-Time Small Business Contractors Down Over Decade

Decreasing numbers of first-time federal vendors in three closely watched small business categories underscore executive branch concerns about federal agencies’ ability to attract and retain a diverse supplier base.

A decade of decline in the three classifications — small disadvantaged businesses, women-owned small businesses, and companies in Historically Underutilized Business zones (HUBZones) — resulted in an average 22% drop across the groups in the number of prime vendors entering the federal marketplace annually, according to a new analysis by Bloomberg Government.

The trend for those three was countered by a 20% cumulative increase in the number of new service-disabled veteran-owned ...