Aurora – Why let the big guys get all the work and make all the money when the little guys deserve some too?
That’s the thinking behind City Councilman Ryan Frazier’s plan to create a Small Business Enterprise program, which would require the city to contract out a percentage of its services to small companies.
“Every year we do so much in contracting,” Frazier said. “It just makes sense that a portion of that should go to small businesses.”
The idea is not unique. Denver and dozens of other cities throughout the country are doing it now with success.
Smaller companies make up more than 99 percent of all businesses nationwide, according to Aurora, and employ half of all private-sector employees.
A requirement that the city ensure at least 10 percent and maybe up to 20 percent of all contracts to small businesses is being proposed. The city already contracts work out to small businesses; it just doesn’t know how much because it’s not tracked.
The federal definition of a small business is one with 500 workers or fewer, but the city probably would cut that in half to about 250 workers.
The proposal also would require companies that the city contracts with to meet certain requirements when they subcontract out their jobs.
City Council members appear to support the plan. Several members recently suggested it require 20 percent of services to small business instead of the 10 percent that Frazier proposed. The council is expected to vote on the issue in the coming weeks.
Aurora Chamber of Commerce president Kevin Hougan said it’s vital that smaller companies in the metro area remain vibrant.
In Colorado, he said, three out of four jobs are created by small businesses.
There are some difficulties, such as getting a smaller company bonded, Hougan said. Still, he said, it’s well worth the effort: “I think it’s a very innovative, positive step to really show support to small- business operations in our community.”
Staff writer Carlos Illescas can be reached at 303-954-1175 or cillescas@denverpost.com.
