March 29, 2024

You’re the Boss Blog: The S.B.A. Says Its Culture Has Changed

The Agenda

How small-business issues are shaping politics and policy.

In a recent post about the incidence of fraud in federal contracting programs for small businesses, the Small Business Administration came in for some criticism from the agency’s inspector general, Peggy E. Gustafson. Ms. Gustafson, whose office is independent from the rest of the agency, testified before Congress recently that the agency needed to “change its culture” and become more aggressive in punishing contractors who misrepresent themselves as small companies in order to win government work.

Joe Jordan, the agency’s associate administrator for government contracting and business development, sees it differently. He thinks the criticisms are out of date. “That may have been true two or three years ago,” he said, “but there is absolutely a culture throughout S.B.A. of ridding our programs of fraud, waste and abuse.” Government officials often try to disassociate themselves from the work of their predecessors, but Mr. Jordan does have some numbers on his side.

He began by discussing suspension and debarment, a process for banning businesses from receiving government contracts, often permanently, in cases of fraud or other misconduct. This was in fact what the inspector general was referring to when she called for a culture change — agency employees, she told legislators, were reluctant to pull this trigger. Mr. Jordan argued that the shift had already occurred.

In the three years beginning in 2009, Mr. Jordan said, the S.B.A. had pursued suspension and debarments for contracting fraud in 51 cases — compared with not more than seven instances over all of the previous decade. “We’re really focused on being more proactive and effective than ever before in terms of protecting our programs and the legitimate small businesses that benefit from them,” he said.

Mr. Jordan said the agency was trying to weed out fraud well before the banishment stage. He cited, for example, efforts to clean up the pool of businesses taking advantage of a preferential contracting program known as HubZones. HubZones are designated disadvantaged neighborhoods; the government sets aside contracts for businesses that have their principal office in a HubZone and employ HubZone residents. The program has been notorious as an opportunity for fraud by companies that falsely claim a HubZone headquarters.

One straightforward way to detect this sort of fraud is to visit a HubZone company’s stated headquarters. “In the first six months of fiscal year 2009,” which began two-and-a-half months before President Obama was sworn in, “S.B.A. had conducted seven HubZone site visits total,” Mr. Jordan said. “In the next six months of ’09, we conducted 700. In 2010, we conducted over a thousand.” One such investigation began when the S.B.A. noticed “multiple firms in the HubZone program that were located at the same address,” Mr. Jordan continued. “We sent a member of our team to do a site visit. She identified the address as a virtual office, so nobody was working there.”

The inspector general’s office began looking into those companies, which included a subcontractor to Eyak Technology, a small-business contractor now involved in an alleged $20 million bribery scheme. (An EyakTek official was one of four people indicted in the case last month, but the company itself was not accused of wrongdoing.) The subcontractor residing at the virtual office was not part of the bribery case, Mr. Jordan said, but that initial inquiry led to further investigations, which uncovered the alleged conspiracy.

Ms. Gustafson has acknowledged the agency’s progress cleaning up the HubZone program. “When S.B.A. started doing a very thorough review and seeing if everybody belonged in the program, people dropped out in droves,” she said at the Congressional hearing. But she made clear that the agency, and the entire federal government, should be even more zealous. She also cautioned that without barring those bad actors from all federal contracting, there was no way to know for certain that they haven’t found other government work elsewhere.

Article source: http://feeds.nytimes.com/click.phdo?i=ff29f9db9b7ed0bb352b36fff870aa80

You’re the Boss Blog: This Week in Small Business: Downgrades, Upgrades and Doing Business in Britain

Dashboard

A weekly roundup of small-business developments.

What’s affecting me, my clients and other small-business owners this week.

Around The World: Is It Safe to Do Business in Britain?

Well, my family and I just returned from our vacation in England, and here’s what we saw.

The Downgrade: Reviewing the Reviewers

Standard Poor’s downgrades our debt. The S.P. chief says to cut entitlements. Jared Bernstein agrees with him. Michael Moore says to arrest him. Ezra Klein thinks S.P. got it right: “Those of us in Washington who would like to see the government work have long wondered when the business community and other entities who need a functioning political system would begin exerting a countervailing force.” Economics of Contempt thinks S.P. got it wrong: “They are, to put it very bluntly, idiots, and they deserve every bit of opprobrium coming their way.” A blogger says “let’s take a moment to remember that this shift to AA+ from AAA represents a healthy step (however slight) in the direction of reality and away from the fantasy created by the scores of dimwits that have held seat in Washington, D.C., over the past many decades.” S.P. also cuts the ratings on 11,000 municipal bond issues. Anita Campbell explains the impact of the downgrade on small businesses. China puts the United States on eBay. Jeff Miller gives the new deficit super-committee two-to-one odds of success.

The Downgrade 2: How About an Upgrade?

Speaking of downgrades, the Points Guy explains how to upgrade to first class without paying for it.

The Data: Even the Sun’s Issuing Warnings

Stocks went on a frenzied ride last week (if we’re in a bear market, let’s hope it’s this kind of bear). The Fed promises low interest rates and buoys the dollar. Gold soars. The Pulse of Commerce Index remains idle in July. Small-business optimism dips again. Quarterly non-farm productivity falls (pdf). The trade deficit expands. Forecasters predict severe solar storms. Job openings are unchanged. But ADP bets on small businesses to beat the dismal job reports, and unemployment applications hit a four-month low. The education bubble shows signs of bursting. But hold on, Dan Rather’s still betting on the U.S.A. And Larry Kudlow says it’s no time for panic: “It seems to me that the economy can hold up. It’s not the kind of rapid growth I’d like to see. But it’s not the deep and dark recession that seems to be embodied in the stock market plunge.” Hale Stewart sees signs of a rebound. San Antonio businesses are showing higher optimism.

Red Tape Update: Fed Trucking Rules Could Be an Opportunity

The Veterans Administration is cracking down after an internal audit showed it had awarded millions of dollars’ worth of contracts to companies that weren’t actually owned by veterans or were otherwise ineligible. Some feel that new restaurant menu rules are a major headache for small businesses. New federal trucking regulations could increase opportunities for independent truck drivers and the Obama administration says the new standards will save $50 billion. A brave man defends tax breaks for private jets: “A host of measurements show companies using business aviation outperform those without aircraft across every key financial and non-financial measure of success.” Hidden taxes on travelers add up. Barry Fisler, office comedian, introduces you to his work.

Women: Talking the Talk

A female entrepreneur explains why it’s important to hire women for your start-up. One reason: “Women are more detail-oriented and comprehensive. In 2006, Louann Brizendine’s controversial book, “The Female Brain,” claimed that women speak three times the number of words that men do. At a start-up, this is an asset.” A 12-year-old girl lets the music do the talking. Jessica Bennett explains why it’s tougher for women than men: “Sure, we outpace the guys around us in high school, college, and post-graduate degrees. But there’s a crucial shift that we’re leaving out when we talk about the ‘new gender gap’ — that when women reach a certain age, most of these trends reverse themselves.” John Stamos teaches guys how to cuddle.

Success Strategies: Are You Weird and Explosive?

Terry Starbucker offers 10 sticky-note reminders for the busy leader, such as “measure what you manage, and keep raising the bar.” Robert Cringely is upset by people’s online behavior and proposes an Internet civility plan. A guy works out of a 78-square-foot office in Manhattan. Recent studies show that overconfidence is a significant factor in increasing productivity. James Altucheron offers six surefire ways to dominate. An Intuit blogger lists five small-business contests worth entering. If your company is weird and explosive you could be eligible for $500,000. Small-business owners are turning to pawn shops. NASA picks a few small companies to build spaceships.

Retail: Consumers Are Getting Smarter

Retail sales rose the most in four months. First Data’s latest Spend Trend report shows consumers spent less on credit cards in July, started shopping more at value retailers, and purchased fewer discretionary items. A blogger says, “New research shows that consumers are finally making progress in improving their overall financial condition. To put it simply they are getting smarter about money.” PC World reports that instant coupons are changing the way small businesses offer discounts. A daily deal start-up raises $35 million. Groupon’s founders get behind a start-up that negotiates group prices. A new study reveals the nation’s top 10 consumer complaints and another says that American shoppers will spend more on good service. American consumers spend less than 2 percent on goods made in China. A new lid enhances the flavor of coffee.

Around the World Two: How to Riot-Proof Your Business

While British businesses tally the cost of last week’s damage, certain business owners find themselves riot-proof. HP and Intel partner to introduce the “Make IT Happen” campaign for Indian small and mid-sized businesses. The Clinton-Bush Haiti Fund announces a $2 million grant to cultivate small and growing businesses.

Start-up: The Start-up Generation Is Ready!

Anika Anand says the start-up generation is ready to fix the economy. The world’s largest start-up is now in the … Philippines? Neil Barron explains how to develop products that people like: “Observe potential customers as they go about their daily work activities. Keep an eye out for their challenges and difficulties. What is not working well for them could be a great opportunity for you.” G.E. sinks $40 million into solar. A venture capitalist points us to free places to get start-up money from the government. CRN reports that some cloud start-ups are getting big funding infusions. An entrepreneur asks for help in deciding between Harvard and starting a company.

Technology: EC2 Goes Down Again

CRN lists 10 mobile apps you’d want if you were stranded on a desert island. Amazon’s EC2 goes down again. Small Business Computing lists the top six Wi-Fi Android apps for small business. The London rioters prove that Blackberry is still relevant. Forty-five thousand Verizon workers go on strike. Visa announces plans to accelerate the migration to EMV contact and contact-less chip technology. David Valdez offers an update on I.T. legislation being considered in Washington.

The Week Ahead:

Treasury International Capital releases post-downgrade long-term purchase numbers, which show domestic and international demand for United Sates Treasuries, on Monday at 9 a.m. Other numbers coming out this week include producer and consumer prices, leading indicators and housing starts.

This Week’s Bests

Way to Sleep Better With Technology Lifehacker’s Adam Dachis explains how technology helps him sleep better: “There are a few sleep-tracking tools that actually provide you with a pretty good picture of what’s happening while you’re unconscious. While these tools may not be as detailed as a sleep clinic, they can give you a good overview of how restful the night was and you can use this information to figure out what causes sleep problems for you and how you can have a more restful night.”

New Way to Find Happiness Henri Juntilla offers seven steps to improve your happiness, for example: “Embrace Death. What is it that you really want to do with your life? What are some of the excuses, fears, and obstacles that are stopping you from doing that? And how do you think you can overcome those and start moving toward what it is that your heart truly wants? If you answer the above questions seriously, you may just find yourself strangely motivated to start taking action. There’s nothing like following your heart when it comes to feeling happy and joyful.”

See the Silver Lining Pamela Slim says there are upsides to economic constraints: “The global economy just delivered us a handy set of economic constraints. There is less time to dilly-dally on the road to building a business. You need to take action today. There are fewer fat pockets of easy money. You need to identify and dig deeply into the profitable veins of the market. There is less tolerance for poor performance or mediocre employees. You must step up your game or be moved out.”

Question: Do you agree that economic constraints can help you focus on what’s important in your business?

Gene Marks owns the Marks Group, a Bala Cynwyd, Pa., consulting firm that helps clients with customer relationship management. You can follow him on Twitter.

Article source: http://feeds.nytimes.com/click.phdo?i=a168fd3d33f2211da6e78ba731bcd3ec