Looking High Risk: All Small Businesses Are Perceived as High Risk in Government Contracting

If you’re a small business owner looking to break into government contracting, here’s a hard truth: you’re already perceived as high risk. Federal agencies and prime contractors worry about your financial stability, past performance, and ability to scale. But that doesn’t mean you can’t win contracts—it just means you need to mitigate risk in their eyes.

The Reality of Risk Perception

? 85% of federal contracts go to businesses with strong past performance (Source: GSA). If you’re new, this can be a major hurdle.

? Small businesses face a 30% higher failure rate in contracting compared to established firms (SBA data).

? Agencies often see small businesses as a liability if they lack certifications like ISO 9001 or ISO 27001, which prove quality and security compliance.

How to Reduce Your Risk Profile

1?? Certifications Matter – Achieving ISO certification, obtaining SBA designations (8(a), WOSB, SDVOSB), or securing CMMC compliance can immediately improve your credibility.

2?? Leverage Teaming Agreements – Partner with larger firms to gain experience and reduce perceived risk.

3?? Build a Strong Capability Statement – Highlight past work, even if it’s outside GovCon, and show financial stability.

4?? Start with Subcontracting – Prime contractors already have past performance. Use them as a launchpad.

Let’s Talk Solutions! Join Our GovCon Webinar

Winning government contracts is about strategy. Learn how to position your small business for success by joining our FREE webinar on February 27 at 12 NOON EST and 7 PM EST. We'll break down risk mitigation strategies, certifications, and how to win your first contract.

February 27 ?Thursday, 12 NOON ?| Eastern Standard Time- Register Here

February 27 ?Thursday, 7:00-8:00PM | Eastern Standard Time- Register Here