Contacting Government

1. 1

   Small-business owners are considerably more likely to see the demanding or negative face of government than the collaborative or positive side, even when owners initiate contact.

2. 2

   Fifteen (15) percent of small-business owners initiated contact with government “many times” over the last three years to learn about or clarify government requirements or obligations. Thirty-eight (38) percent reported no contacts for that purpose. Of those who made any contact to inquire about a government requirement or obligation, two-thirds were primarily interested in licenses or permits.

3. 3

   Over the last three years, 1 percent extensively explored possible public assistance for their business. Another 18 percent made at least one inquiry about financial, management or other small business support programs. Eighty (80) percent made none.

4. 4

   Five (5) percent of small employers indicated that they had received financial assistance in the form of a loan, loan guarantee, grant, bond, etc., from government during the last three years. That amounts to about 100,000 per year. Three (3) percent obtained publicly subsidized consulting, advisory or management help over the same period.

5. 5

   Twenty-one (21) percent won one or more government contracts in the last three years. A non-mutually exclusive 15 percent won a contract to support a government contractor (effectively becoming a sub-contractor). Among those doing any business with government, the average proportion of government sales is 18 percent of total sales. Most (64%) now selling to government would like to increase their government sales.

6. 6

   Seventy-two (72) percent made no direct or indirect sales to government in the last three years. Eighty-four (84) percent of that number does not intend to compete for a government contract in the next three years. The primary reason these owners have no plans to compete is that they believe the goods and services they produce are not purchased by government.

7. 7

   Seventy-eight (78) percent have not attempted in the last three years to find information government produces or houses that is of direct commercial value.

8. 8

   Over the last three years, 10 percent of small-business owners contacted an elected public official(s) “many times” to complain about a government rule or to express a view on potential legislation or regulatory activity. Fifty-seven (57) percent did not contact any public official for these purposes over the last three years.

9. 9

   Nine (9) percent of small businesses received “many” on-site visits from one or more government officials to inspect the business, check records, etc., over the last three years. Forty-four (44) percent did not receive a single visit. Those employing 20 people or more are almost twice as likely to have received at least one visit as those employing fewer than 10.

10. 10

    When initiating contact with government, small-business owners are usually most likely to do so by telephone or in person regardless of the contact’s purpose. They are less likely to use mail and the Internet.

11. 11

    Small employers initiate contact at all levels of government. However, more appear to focus on state government than on any other level. The fewest focus on the federal government.

Volume 3, Issue 1, 2003
ISSN 1534-8326

William J. Dennis, Jr.
NFIB Research Foundation

• 1In the last THREE YEARS, have you won one or more contracts to provide goods and/or services directly to a government agency or unit – federal, state or local? Top 100
• 1bPlease estimate the percent of your total sales in the last THREE years that have come from direct and/or indirect sales to government agencies or units? Top 100
• 3In the last THREE years, have you contacted a government agency or unit to learn about or clarify a government obligation, such as a tax rule or safety regulation, or to obtain a license or permit? Have you done that many times, a few times, once or twice, or never? Top 100
• 7In the last THREE years, have you obtained a loan, a loan guarantee, or a grant for this business from any government agency or unit? Top 100
• 8In the last THREE years, have you obtained any free or low-cost consulting services or management assistance from a government-sponsored or subsidized program? Top 100
• 10In the last THREE years, has a government official been on your business premises or work site to inspect it, check permits and records, or otherwise ensure you are complying with government requirements? Has that happened many times, a few times, once or twice, or never? Top 100
• 1aIn the last THREE years, have you won one or more contracts to provide goods and/or services to another business, which then used your work in its sales to a government agency or unit?
• 1cIn dollars, is the largest share of those sales made directly and/or indirectly to the federal government, state governments, or local governments?
• 1dOver the next THREE years, would you like the SHARE of your direct and/or indirect sales to government units or agencies to increase, decrease, or stay about the same?
• 2Do you intend to compete for one or more government contracts in the next three years?
• 2aWhy don’t you intend to compete for a government contract?
• 3aWere most of those contacts to learn about a government obligation or to get a license or permit?
• 3bWere most of those contacts in person, by mail, by telephone, or over the Internet?
• 3cWere most of those contacts with the federal government, state governments, or local governments?
• 4In the last THREE years, have you contacted an elected public official to complain about a law or regulation, or to express support or opposition to possible new laws or regulations? Have you done that many times, a few times, once or twice, or never?
• 4aWere most of those contacts in person, by mail, by telephone, or over the Internet?
• 4bWere most of those contacts with the federal government, state governments, or local governments?
• 5In the last THREE years, have you contacted government units or agencies for information or data that you could use for direct business purposes, such as determining the size of market, area wage rates, or technical feasibility, etc.? Have you done that many times, a few times, once or twice, or nev...
• 5aWere most of those contacts in person, by mail, by telephone, or over the Internet?
• 5bWere most of those contacts with the federal government, state governments, or local governments?
• 6In the last THREE years, have you contacted government units or agencies about a government program, financial or management assistance, or other possible public support for your business? Have you done that many times, a few times, once or twice, or never?
• 6aWere most of those contacts in person, by mail, by telephone, or over the Internet?
• 6bWere most of those contacts with the federal government, state governments, or local governments?
• 9In the last THREE years, have you obtained a special tax abatement or other tax relief that is generally NOT available to businesses similar to yours?