During fiscal year 2022-23, Pennsylvania spent a record more than $1 billion on small businesses (SBs), small diverse businesses (SDBs), and veteran business enterprises (VBEs), according to the Pennsylvania Department of General Services (DGS).
During the fiscal year, the state spent $447 million on small businesses, $678 million on SDBs, and $690 million on SDBs and VBEs.
“Securing state contracts has historically been a challenge for small businesses in Pennsylvania,” DGS Secretary Reggie McNeil said. “Obstacles – including a lack of awareness and technical resources – have made it difficult for small businesses to compete for contracts. I can confidently say that this is changing – and the annual report reflects this.”
State contract payments to small businesses resulted in an estimated $220 million in taxes revenue at the local, state, and federal levels and created more than 11,700 jobs.
The state also implemented several improvements to its programs and policies including a prompt pay policy to ensure nonconstruction prime contractors pay subcontractors within 10 days of receiving state payments, and reducing the time it takes to certify a small business with DGS by 33 percent.
DGS’s Bureau of Diversity, Inclusion and Small Business Opportunities prepared the 2022-23 Small Business Opportunities Program Annual Report.