Inactive Total Small Business Set-Aside (FAR 19.5)

SOURCES SOUGHT: The Small Business Administration (SBA) has an upcoming requirement for a study to help determine statistics and provide data gap analysis on small business exporters. This is a source... SOURCES SOUGHT: The Small Business Administration (SBA) has an upcoming requirement for a study to help determine statistics and provide data gap analysis on small business exporters. This is a sources sought only, do not respond with proposals at this time. The SBA anticipates that this will be set side for small business. If you are interested in this requirement, please respond to email, jeffrey.meyer@sba.gov with subject line “Total Addressable Market – Sources Sought”. In your response include business name; contact information; business socio-economic status; any relevant experience with this type of work. Lack of reliable data both in the number of exporters and total addressable market of potential exporters prevents an accurate accounting of the small business export population. This study is needed for SBA to deepen the understanding of small business exporting landscape and to help more effectively communicate with current and prospective exporters, both to educate them on SBA programs and services to support their global sales growth and to gather insight on how we can better serve these small businesses. Detailed data and analysis of small business exporting will also help SBA to communicate small business trade contributions to policymakers and more effectively represent small businesses in trade policy discussion and bilateral and multi-lateral trade negotiations. Quantitative Research ( Task 1) The primary purpose of this study is to determine the total addressable market (TAM) of U.S. small business export eligible companies (# of firms). We know, intuitively, that not all small businesses are exporters or will ever be exporters. Tree trimmers, dog walkers, and hair salon owners, for example, have nothing to export and operate in the U.S. domestic, and often hyper-local, marketplace. At the same time, the small businesses that produce and distribute olive oil or handbags, for example, could potentially be exporters, but might not be exporting at present. These future small business exporters are an important part of the total addressable market comprised of both current and potential exporters. While important to include all “tradeable” industries in the analysis of TAM, SBA is particularly interested in identifying those industries with the greatest potential for global expansion/SBA support. As a subset of the primary TAM research, the research should identify up to 20 top industries where SBA could focus attention to increase export sales. Current SBA loan data for exporters should be a component of the overall analysis. Additionally, the findings should make a determination as to the number and estimated annual aggregate dollar volume of U.S. small businesses currently exporting. While reliable data is available on mature exporters of traditional physical goods (i.e. manufacturing/wholesale), the data is less reliable on both service industries and providers of digital products (software, digital entertainment, etc.), not to mention “new-to-exporting” companies or “accidental” exporters who discovered that their e-commerce engine received an order from overseas. One additional data point that we would be interested in acquiring as a component of the quantitative research is the volume of small business export loans in the marketplace vs. export loans supported by SBA export financing. In other words, what percentage of all export loans to small businesses are facilitated by SBA? This information will help inform policy making and dialogue with Congress and influence marketing and promotion efforts. Task 1 Deliverables to Include: Number of small businesses that represent the TAM for SBA export services. Percentage of small businesses from tradeable sectors currently exporting. Top industries for SBA OIT to target for outreach and program support. Aggregate dollar value of current small business exports (including service exports). Percentage of export loans in the marketplace to small businesses that are supported by SBA export financing Qualitative Research (Task 2) The secondary purpose of the research is to make recommendations on the most effective means of marketing to and communicating with the universe of small business exporters, including those untapped audiences of small businesses with an interest in potentially exporting. Is it enough for the SBA OIT to target individual exporters with custom advice? Are there methods through which larger audiences can be reached with awareness messaging that stimulates interest in exporting from that universe of potential exporters, or prompts current exporters to ask for a business consultation or apply for an SBA-backed loan with their local lender? Are there specific industry associations that SBA OIT should be collaborating with on outreach? This research should also include analysis of characteristics of successful exporters. Understanding characteristics of successful exporters (e.g. owner demographics, urban/rural) may help SBA OIT identify opportunity to address gaps in outreach, program design, or service delivery. Furthermore, and with respect to the trade finance products offered through private sector banks and guaranteed by the SBA, the research should make recommendations on any changes to the current suite of term loans and working capital lines backed by the SBA Office of International Trade. Phase 2 Deliverables to Include: Recommendations on marketing strategy for SBA export finance products, to include primary messaging and target audience Insight on characteristics of successful exporters Recommended program or policy updates to better support the U.S. small business exporter community When complete, the findings and recommendations of this research will assist the SBA Office of International Trade in a) better framing the nature and impact of its work; b) improving the products and services it provides to U.S. small business exporters; and (c) more effectively targeting outreach – all to increase total U.S. exports and drive growth in export-related jobs. By “better framing the nature and impact” SBA OIT will be able to tell a more accurate and effective story of the role of SBA financing in supporting small business export growth. Common misconceptions, such as the statement that “less than one-percent of small businesses export” under-values the significance of exporting for small business and the role of OIT in supporting small business export growth. Better insight on gaps in service can not only improve product and service offerings, but also help focus program innovations and provide academic evidence for justification to support policy updates. Recommendations that the researcher would make for the SBA to implement may also include SBA Export Finance Specialists targeting specific industry groups in their region to raise awareness of SBA International Trade products and/or OIT collaborating with key trade groups to raise awareness of exporting opportunities.