Economic Impact Study – Small Business and Type of Set-Aside Procurement Programs
Date: February 13, 2023
The U.S. Small Business Administration (SBA) contracted with Optimal Solutions Group, LLC, to conduct an economic impact study. The study focused on the economic effects of the $145.8 billion obligated through the Small Business Set-Aside, HUBZone, Service-Disabled Veteran-Owned Small Business, Women-Owned Small Business, and the 8(a) Business Development programs during Fiscal Year 2021. The Regional Economic Models, Inc. (REMI), an economic forecast modeling tool, was used to calculate and report the effects on employment, output (sales), value-added (gross domestic product), and personal income for total small business obligations and each set-aside program. Using a conservative economic forecast, the incremental economic effects of the FY 2021 contract dollars obligated through these small business procurement programs on the national economy are: a total of 1,333,679 jobs created or retained, output of $310.7 billion, value-added (gross domestic product) of $184.9 billion, and personal income of $97.7 billion.