Performance of Historically Underrepresented Firms in the Public-Private Sector

Authors

  • Troy A. Voelker University of Houston Clear Lake
  • William C. McDowell East Carolina University

Abstract

This study examines the performance of historically underrepresented firms, which includes women-owned businesses and socially disadvantaged businesses. We examine performance in the context of securing public contracts and compare the performance of these historically underrepresented firms to those of non-minority small and large businesses. Utilizing a sample of all contracts awarded by the Johnson Space Center, a NASA directorate located in Houston, Texas, which identified 5,676 contracts totaling approximately $157 billion, we found that small businesses received around 63% of all contracts. The results indicate that more diverse firms received higher awards than specialists and that disadvantaged firms received higher dollar awards than general small businesses. In addition, women-owned businesses neither outperformed nor performed more poorly than general small business in the dollar amounts of contracts received, and they are neither more or less specialized than general small and large businesses. A discussion, practical implications, and future research ideas are also presented.

References

Abramowicz, K., & Sparks, H. C. (2007). The Small Business Administration's 8(a) business development program. CPA Journal, 77(2), 60-62.

Audretsch, D. B. (2003). Standing on the shoulders of midgets: The U.S. Small Business Innovation Research program (SBIR). Small Business Economics, 20(2), 129-136.

Beekman, A. V., & Robinson, R. B. (2004). Supplier partnerships and the small, high-growth firm: Selecting for success. Journal of Small Business Management, 42(1), 59-77.

Blanchflower, D. G. (2009). Minority self-employment in the United States and the impact of affirmative action programs. Annals of Finance, 5(3/4), 361-396.

Bovaird, T. (2004). Public-private partnerships: from contested concepts to prevalent practice. International Review of Administrative Sciences, 70, 199-215.

Carter, N. M., & Williams, M. (1997). Discontinuance among new firms in retail: The influence of initial resources, strategy, and gender. Journal of Business Venturing, 12(2), 125.

Carter, S., & Rosa, P. (1998). The financing of male- and female-owned businesses. Entrepreneurship & Regional Development, 10(3), 225-241.

Cavalluzzo, K. S., Cavalluzzo, L. C., & Wolken, J. D. (2002). Competition, small business financing, and discrimination: Evidence from a new survey. Journal of Business, 75(4), 641.

Chaganti, R., & Parasuraman, S. (1996). A study of impacts of gender on business performance and management patterns in small business. Entrepreneurship: Theory & Practice, 21(2), 73-75.

Connell, D. (2009). Innovation and procurement policy: Using government procurement to help grow new science and technology companies: Lessons from the US small business innovation research (SBIR) programme. Innovation: Management, Policy & Practice, 11(1), 127.

Cooper, R. S. (2003). Purpose and performance of the Small Business Innovation Research (SBIR) program. Small Business Economics, 20(2), 137.

Daniel, T. A. (2004). The exodus of women from the corporate workplace to self-owned businesses. Employment Relations Today (Wiley), 30(4), 55.

Das, T. K., & He, I. Y. (2006). Entrepreneurial firms in search of established partners: Review and recommendations. International Journal of Entrepreneurial Behaviour & Research, 12(3), 114-143.

Gelinas, R., & Bigras, Y. (2004). The characteristics and features of SMEs: Favorable or unfavorable to logistics integration? Journal of Small Business Management, 42(3), 263-278.

Held, B. (2007). Improving the Department of Defense's Small Business Innovation Research program. Santa Monica, CA: The RAND Institute.

Held, B., Edison, T., Pfleeger, S. L., Anton, P. S., & Clancy, J. (2006). Evaluation and recommendations for improvement of the Department of Defense Small Business Innovative Research Program. Santa Monica, CA: The RAND Institute.

Kelly, S. (2007). The Function and character of relationship benefits: Transferring capabilities and resources to the small firm. Journal of Small Business and Enterprise Development, 14(4), 602-619.

Lee, L., & Gongming, Q. (2007). Partnership or self-reliance: Prescriptions for small and medium-sized enterprises. Journal of Business Strategy, 28(6), 29-33.

Lerner, J. (1999). The government as venture capitalist: The long-run impact of the SBIR program. Journal of Business, 72(3), 285.

Myers Jr, S. L., & Ha, I. (2009). Estimation of race-neutral goals in public procurement and contracting. Applied Economics Letters, 16(3), 251.

Reardon, E., Nicosia, N., & Moore, N. Y. (2007). The utilization of women-owned small businesses in federal contracting. Santa Monica, CA: The RAND Institute.

Richter, J. (2004). Public-private partnerships for health: A trend with no alternatives. Development, 47, 43-48.

Robb, A. M. (2002). Entrepreneurial performance by women and minorities: The case of new firms. Journal of Developmental Entrepreneurship, 7(4), 383.

Robinson, S. (2007). Business failure rates: A look at sex and location. Academy of Entrepreneurship Journal, 13(1), 45.

Sawhney, M., & Zabin, J. (2002). Managing and measuring relational equity in the network economy. Journal of the Academy of Marketing Science, 30(4), 313-332.

Seong, S., Horn, K., & Held, B. (2008). Estimating the cost of administering the Department of Defense Small Busienss Innovation Research (SBIR) program. Santa Monica, CA: The RAND Institute.

Shaw, E., Carter, S., & Brierton, J. (2001). Unequal entrepreneurs: Why female enterprise is an uphill business. London: The Industrial Society.

Treichel, M., & Scott, J. A. (2006). Women-owned businesses and access to bank credit: Evidence from three surveys since 1987. Venture Capital, 8(1), 51.

Verheul, I., Risseeuw, P., & Bartelse, G. (2002). Gender differences in strategy and human resource management. International Small Business Journal, 20(4), 443.

Wallsten, S. J. (2000). The effects of government-industry R&D programs on private R&D: The case of the Small Business Innovation Research program. RAND Journal of Economics (RAND Journal of Economics), 31(1), 82.

Downloads

Published

2010-01-21

Issue

Section

Articles

How to Cite

Performance of Historically Underrepresented Firms in the Public-Private Sector. (2010). Journal of Small Business Strategy (archive Only), 21(1), 18-38. https://libjournals.mtsu.edu/index.php/jsbs/article/view/136