The federal market is very large with over $400B per year in spending. This market is far too large for any business to attempt to be selling everywhere. Therefore we recommend focusing on one to two federal agencies and obtaining contracting vehicles that give your firm an advantage over other small businesses.
GSA Schedule Creates Market Share Advantage
330K small businesses are registered to do business with the federal government. Only 12K of these small businesses have obtained a GSA Schedule. Let’s compare the average sales results for these two federal small business categories. (see table below)
| Small Business Type | Federal Sales | Number of Firms | Average Sales | Market Share vs. Large Business |
|---|---|---|---|---|
| GSA Schedule Holders | $14B | 12K | $1MM | 40.4% |
| Small Business – non GSA Schedule Holders | $90B | 331K | $272K | 20.3% |
The small business GSA Schedule Holders have 3.6X more sales ($1MM vs $272K) than non-schedule holders. Additionally utilizing a GSA Schedule makes a small businesses 2x as competitive against large businesses. GSA Schedule 40.4% vs Non-GSA Schedule 20.3%.
What Industries Does a GSA Schedule Provide the Greatest Advantage
Below is the listing of what percentage of the market small business GSA Schedule Holder obtain compared with their large business counter parts.
*Denotes large spending categories.
A GSA Schedule provides a gateway for small businesses to better compete in the federal marketplace “shirnking it” so they can more effectively complete.