Opportunities via E-Business Anna M. Chávez Chief of Staff Office of Government Contracting and Minority Enterprise Development U.S. Small Business Administration

9/17/99 Agenda - San Diego, CA 4 Effect of the Internet on Small Businesses 4 Benefits of Electronic Commerce (EC) 4 SBAs E-Commerce Strategies & Tools

U.S. Internet Revenue 4 $301 Billion in Other industry rivals - –Automobiles = $350 billion –Telecommunications = $270 billion 4 (Source: Univ. of Texas Study/Washington Post 6/10/99)

Effect of E-Commerce on Small Business 4 Over 4.5 million small employers used computer equipment in Small business and Internet Access –1996 = 21.5% –1998 = 41.2% 4 35% maintain Web site

EC Effects, Cont Small Businesses earned $3.5 billion in e-commerce sales 4 Next Decade - $25 billion to over $300 billion 4 By 2000, 1/3 of all business-to-business transactions via e-commerce 4 (Source: SBA Office of Advocacy, E-Commerce Report, July 1999)

Small Business PC Ownership

Benefits of E-Commerce 4 Benefits to federal government –Reduced acquisition times and costs –Lower prices for goods and services –Expanded number and quality of suppliers –Increased buyer productivity –Better management info –Better inventory control

Benefits of E-Commerce, cont. 4 Benefits to suppliers –Reduced time to market –Improved operating efficiencies –Improved product quality at reduced cost –Improved payment process –Expanded number of customers

SBAs Role in E-Commerce 4 Provide Federal Leadership in EC Initiatives for small business –Nov. 30, 1998 Presidential Directive –Create Internet-based gateway –Anytime-Anyplace strategies –Credit Card Acceptance –Electronic Catalogs

SBA E-Commerce Strategies 4 Fund seminars and workshops 4 Distance learning –OnLine Classroom –Web-based tutorials 4 Encourage Credit Card Acceptance –Electronic Catalogs

Strategies, cont... 4 Development and maintenance of SBA Internet-based applications 4 –U.S. Business Advisor –ACE-Net –Womens On-line Business Resource Center

Strategies, cont... 4 GC/MED E-Commerce Tools on-line 4 –PRO-Net pro-net.sba.gov/ –SUB-Net web.sba.gov/subnet/

Strategies, cont... 4 GC/MED E-Commerce Tools on-line, cont... –HUBZone –SDB - Private Certifiers –BusinessLINC –TECH-net 4 On-line certification, ex. 8a, SDB, & HUBZone

Credit Card Acceptance 4 FY Fed. Govt = 28 million purchases 4 98% $25,000 or under 4 Market Segment Poised for EC Roll-out –Micro-purchases ($2,500 or less) –Orders under $25,000 from indefinite delivery, indefinite quantity (IDIQ) contracts or schedules

Electronic Catalogs 4 Allow buyers to electronically browse to gain awareness of products and services available under contract 4 Valuable tool for Business growth 4 GSA requirement: –Jan all schedule contractors must accept govt purchase card for micro-purchases ($2,500) on GSA Advantage!

GC/MED EC Tools PRO-Net Procurement Marketing and Access Network

GC/MED E-Commerce tools, cont... HUBZone Empowerment Contracting Program

The HUBZone Empowerment Contracting Program Community Based: 4 Empowerment 4 Employment 4 Enterprise

Purpose of the HUBZone Program 4 Provide federal contracting assistance for qualified small business concerns located in historically underutilized business zones to: –Increase employment opportunities –Stimulate capital investment in those areas –Empower communities through economic leveraging and the multiplier effect

Qualified Areas 4 Qualified Census Tracts (HUD) - 7,000 4 Qualified Nonmetropolitan Counties –Median household income is less than 80% of the nonmetropolitan state median household income (Census) –Unemployment rate that is not less than 140% of the state-wide average unemployment rate (BLS) 4 Indian reservations (external boundary)

Federal Departments and Agencies Affected Ten major federal agencies are included in the Program for FYs 1999 and After September 30, 2000, the HUBZone program will apply to all federal departments and agencies

Goaling 4 Based upon a percentage of the total value of federal prime contract awards % % % % % and each year thereafter

Requirements To Be A Qualified HUBZone SBC 4 FOUR REQUIREMENTS: –Must be a small business –Concern must be owned and controlled only by US citizens –The principal office of the concern must be located in a HUBZone; and –At least 35% of the concerns employees must reside in a HUBZone

The Certification Process 4 Fully electronic, Internet-based 4 Integrated with Pro-Net 4 SBA will not process incomplete packages 4 Processing time - 30 days 4 SBA may request additional information or clarification any time after submission 4 SBAs decision will be in writing

Contractual Assistance Procurement Methods 4 Set-aside awards 4 Sole source awards 4 Awards through full and open competition after application of a price preference in favor of the HUBZone SBC

National Perspective -Qualified HUBZones

California- Qualified HUBZones

San Diego, California Qualified Census Tracts

San Diego Census Tract

For Additional Information - Contact 4 Michael P. McHale - Acting AA/HUB 4 Web-site: Telephone: (202) FAX: (202)

Conclusion 4 E-Commerce is used for… –customer identification –advertising –consumer sales –business-to-business transactions –participation in Federal government procurement

Conclusion, cont… 4 SBA will… –facilitate small business and entrepreneurial use of the Internet and electronic commerce Seminars and workshops Distance learning Credit Card Acceptance E-Commerce Tools

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