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

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Opportunities via E-Business Anna M. Chvez Chief of Staff Office of Government Contracting and Minority Enterprise Development U.S. Small Business Administration Slide 2 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 Slide 3 U.S. Internet Revenue 4 $301 Billion in 1998 4 Other industry rivals - Automobiles = $350 billion Telecommunications = $270 billion 4 (Source: Univ. of Texas Study/Washington Post 6/10/99) Slide 4 Effect of E-Commerce on Small Business 4 Over 4.5 million small employers used computer equipment in 1998 4 Small business and Internet Access 1996 = 21.5% 1998 = 41.2% 4 35% maintain Web site Slide 5 EC Effects, Cont... 4 1997 - 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) Slide 6 Small Business PC Ownership Slide 7 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 Slide 8 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 Slide 9 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 Slide 10 SBA E-Commerce Strategies 4 Fund seminars and workshops 4 Distance learning OnLine Classroom www.classroom.sba.gov Web-based tutorials 4 Encourage Credit Card Acceptance Electronic Catalogs Slide 11 Strategies, cont... 4 Development and maintenance of SBA Internet-based applications 4 www.sba.gov U.S. Business Advisor www.business.gov ACE-Net Womens On-line Business Resource Center Slide 12 Strategies, cont... 4 GC/MED E-Commerce Tools on-line 4 www.sba.gov/gcmed/ PRO-Net pro-net.sba.gov/ SUB-Net web.sba.gov/subnet/ Slide 13 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 Slide 14 Credit Card Acceptance 4 FY 1998 - Fed. Govt = 28 million purchases 4 98% valued @ $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 Slide 15 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. 1999 - all schedule contractors must accept govt purchase card for micro-purchases ($2,500) on GSA Advantage! Slide 16 GC/MED EC Tools PRO-Net Procurement Marketing and Access Network Slide 17 Slide 18 Slide 19 Slide 20 Slide 21 Slide 22 Slide 23 Slide 24 GC/MED E-Commerce tools, cont... HUBZone Empowerment Contracting Program Slide 25 The HUBZone Empowerment Contracting Program Community Based: 4 Empowerment 4 Employment 4 Enterprise Slide 26 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 Slide 27 Qualified Areas 4 Qualified Census Tracts (HUD) - 7,000 4 Qualified Nonmetropolitan Counties - 900 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) Slide 28 Federal Departments and Agencies Affected Ten major federal agencies are included in the Program for FYs 1999 and 2000. After September 30, 2000, the HUBZone program will apply to all federal departments and agencies Slide 29 Goaling 4 Based upon a percentage of the total value of federal prime contract awards 4 1999 - 1% 4 2000 - 1.5% 4 2001- 2% 4 2002 - 2.5% 4 2003 - 3% and each year thereafter Slide 30 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 Slide 31 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 Slide 32 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 Slide 33 Slide 34 Slide 35 National Perspective -Qualified HUBZones Slide 36 California- Qualified HUBZones Slide 37 San Diego, California Qualified Census Tracts Slide 38 San Diego Census Tract 06070041.00 Slide 39 For Additional Information - Contact 4 Michael P. McHale - Acting AA/HUB 4 Web-site:www.sba.gov/hubzone 4 e-mail: [email protected] 4 Telephone: (202) 205-8885 4 FAX: (202) 205- 7167 Slide 40 Conclusion 4 E-Commerce is used for customer identification advertising consumer sales business-to-business transactions participation in Federal government procurement Slide 41 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 Slide 42 Thank You! 4 Please visit our website @ www.sba.gov/gcmed/ 4 E-mail me at [email protected] 4 Call 202-205-6459