The Biggest Myth About Government Contracts That’s Costing Businesses Millions

Ask most small or mid-sized business owners about federal contracting and you’ll likely hear this myth: “Government contracts are only for big corporations.”

This misconception is not only outdated—it’s costing small businesses millions in missed revenue. The truth? The federal government is actively looking to partner with small, agile, and certified businesses. But winning requires more than a good product or service—it requires strategy, preparation, and insight.

Busting the Big Business Myth

Let’s be clear: the federal government is the world’s largest buyer of goods and services. And it doesn’t just do business with Fortune 500 companies.

In fact, nearly 26% of all federal contracting dollars are set aside for small businesses. That adds up to more than $160 billion annually. Programs like 8(a), WOSB, HUBZone, and SDVOSB exist specifically to ensure small businesses have a seat at the table.

Some common small business myths—and the reality:

• Myth: “Government contracts are too bureaucratic to be worth it.”
  
  Reality: The process is structured—but once you understand it, you can win repeat business efficiently.
  
  
  
• Myth: “You need political connections to win.”
  
  Reality: Relationships help, but performance, compliance, and capability matter more—and anyone can build strategic relationships.
  
  
  
• Myth: “It’s only for defense or tech companies.”
  
  Reality: The government buys everything from landscaping to logistics, marketing to manufacturing.
  
  
  

The Opportunities Are Real—If You Know Where to Look

Federal buyers post thousands of opportunities daily on SAM.gov, ranging from micro-purchases under $10,000 to multi-million-dollar contracts. The Biden Administration’s Buy American, Hire American initiative has only increased demand for U.S.-based suppliers, especially small and minority-owned businesses.

Here’s where small businesses win:

• Through set-aside contracts—only available to certified small businesses
  
  
• By offering niche services or local knowledge that large firms lack
  
  
• With speed and flexibility that big firms can’t match
  
  
  

But There’s a Catch—You Need to Know the System

It’s true that federal contracting comes with complexity. There are registrations, solicitations, certifications, and compliance requirements. That’s why so many businesses give up before they start—or worse, waste time and money learning the hard way.

That’s where an experienced partner makes the difference. At GovPointe, we help clients:

• Register correctly in SAM.gov
  
  
• Understand small business certification options
  
  
• Find relevant opportunities and evaluate risks
  
  
• Prepare professional capability statements and proposals
  
  
• Build long-term strategies, not just short-term wins
  

Government Contracting Isn’t Just Possible—It’s Profitable

Too many capable businesses sit on the sidelines because they’ve bought into the myth. Meanwhile, others with less experience—but more insight—are winning contracts and building wealth.

Don’t let outdated assumptions keep you from a multi-billion-dollar marketplace. You don’t have to go it alone—and you shouldn’t.

🔍 Explore real-time federal contract data at USAspending.gov

📝 Begin your journey at SAM.gov

The biggest myth is that you can’t win. The biggest mistake is not trying—strategically.