Small Business Set-Asides: Opportunities and Benefits

Small Business Set-Asides: Opportunities and Benefits

Small Business Set-Asides

In the world of government contracting, small businesses often find themselves in competition with larger, more established firms. While the competition can be fierce, the government recognizes the importance of supporting small businesses and fostering economic growth. This recognition has led to small business set-aside programs that offer unique opportunities and benefits. In this article, we explore government programs and set-aside opportunities for small businesses, including HUBZone, 8(a), and WOSB, and their significance in government contracting.

Understanding Small Business Set-Asides

Small business set-asides are a procurement method government agencies use to reserve specific contracts or portions of contracts exclusively for small businesses. These set-aside programs are designed to level the playing field, promote small business participation in government contracts, and stimulate economic development. They provide small businesses with opportunities they might not have otherwise, allowing them to compete for and win government contracts.

Three key small business set-aside programs include:

1. HUBZone (Historically Underutilized Business Zones)

HUBZone set-asides are designed to encourage economic development in historically underutilized business zones, typically areas with low income or high unemployment. To qualify for HUBZone contracts, a business must meet certain criteria, including being in a HUBZone and employing a workforce that lives in the zone.

Benefits of HUBZone set-asides:

  • Exclusive access to HUBZone contracts.
  • A price evaluation preference, giving HUBZone businesses an advantage in the bidding process.
  • Assistance in obtaining government surplus property.

2. 8(a) Business Development Program

The 8(a) program is designed to assist small businesses owned by socially and economically disadvantaged individuals. Businesses accepted into the program can receive sole-source contracts, set-asides, and other forms of support for their development.

Benefits of the 8(a) programs:

  • Sole-source contracts, which allow agencies to award contracts without competitive bidding.
  • Participation in the mentor-protégé program to receive guidance from experienced businesses.
  • Access to the 8(a) Online Application and Certification ( platform.

3. WOSB (Women-Owned Small Business) Program

The WOSB program aims to provide opportunities for women-owned small businesses. This program reserves certain contracts for WOSBs and economically disadvantaged women-owned small businesses (EDWOSBs). To participate, businesses must be certified as WOSBs by the Small Business Administration (SBA).

Benefits of the WOSB program:

  • Exclusive access to contracts set aside for WOSBs and EDWOSBs.
  • A price evaluation preference for WOSBs in full and open competition.
  • Opportunities to participate in the mentor-protégé program.

Advantages of Small Business Set-Asides

Participating in small business set-aside programs offers several advantages to small businesses, including:

  • Reduced Competition: Set-aside contracts limit competition to eligible small businesses, increasing the chances of winning contracts.
  • Exclusivity: Small businesses have exclusive access to a portion of government contracts, reducing competition from larger corporations.
  • Mentorship and Guidance: Many set-aside programs provide mentorship opportunities, allowing small businesses to learn from more experienced contractors.
  • Economic Development: Small business set-asides help stimulate economic development in underserved areas and promote diversity in government contracting.
  • Profitability: Winning set-aside contracts can significantly boost the profitability and growth of small businesses.


Small business set-asides are a testament to the government’s commitment to supporting and promoting the growth of small businesses. These programs offer unique opportunities and advantages to small businesses, allowing them to compete in the world of government contracting. Whether you qualify for HUBZone, 8(a), WOSB, or other set-aside programs, exploring these opportunities can be a significant step toward securing government contracts and contributing to the economic vitality of your business. As the government continues to emphasize diversity and inclusivity, the significance of small business set-asides in government contracting remains on the rise.