Unlocking opportunities for small and disadvantaged businesses
Commissioned by Amazon
In 2018, the US introduced the Commercial Platforms Program (CPP), reforming federal agencies procurement of ‘routine commercial products’. The program enables e-commerce websites and third-party suppliers to sell directly to federal buyers, helping enhance competition and minimize administrative costs for businesses and federal agencies.
Federal agencies also purchase from various businesses through other online marketplaces besides the CPP, but currently the SBA does not allow agencies to earn credit for these purchases. Expanding the scope of the statute to allow agencies to earn credit towards their SBA targets for purchases through online marketplaces beyond just the CPP would help agencies to reach their annual SBA goals.
On behalf of Amazon, Oxford Economics has assessed the impact of a scenario in which federal agencies can claim credit for purchases made with small and disadvantaged businesses across all online marketplaces.
Policy reforms that allow federal agencies to claim credit for purchases from small and disadvantaged businesses across all online marketplaces, not just the CPP, are expected to produce a significant boost to these firms. Our modelling suggests that these reforms could increase federal awards with small and disadvantaged businesses by $100 million in FY2024. This implies that the total value of federal spending with these businesses in FY2024 is projected to range between $315 million to $415 million.
The experts behind the research
Our Economic Consulting team are world leaders in quantitative economic analysis, working with clients around the globe and across sectors to build models, forecast markets and evaluate interventions using state-of-the art techniques. Lead consultants on this project were:
Luke Miller
Lead Econometrician
Henry Worthington
Director, Economic Consulting
Tags:
Recent Related Reports
The TikTok Effect: The socioeconomic impact of TikTok in five European countries
Oxford Economics were commissioned by TikTok undertake economic modelling of the impact of SMEs using TikTok as an innovative platform for growth. To do this, we drew on new survey research, complemented by case studies of SMEs.
Find Out MoreGender-Smart Investing for Inclusive Growth in North Africa
This study investigates both the entrepreneurial and the small to medium-sized business (SME) landscapes across the North African region with a specific focus on the role being fulfilled by women.
Find Out MoreExperian / Oxford Economics Main Street Report
Experian/Oxford Economics’ Main Street Report brings deep insight into the overall financial well-being of the small-business landscape, as well as provides commentary on what specific trends mean for credit grantors and the small-business community.
Find Out MoreSMB Ambitions Barometer
Oxford Economics was commissioned by Payoneer to survey 3,575 small and medium-sized businesses around the world in an effort to understand their goals for international expansion and the challenges they face along the way.
Find Out More