It’s kind of like rain on the 4thof July. After picnics and family gatherings, the highlight of the day is the fireworks. But a thunderstorm can quickly bring down the holiday celebrations. That’s what it felt like on January 3rd, when the new Congress was sworn in. The excitement, dampened by the “rain” of the shutdown, loomed over the festivities.
The shutdown rained on the excitement of new/continuing business anticipated by federal contractors and the consequences were substantial. According to a report recently released by the House Small Business Committee, small firms nationally lost out on 6,875 contract actions a day, worth $301 million, during the shutdown. According to Bloomberg, federal contractors lost around $200 million per day during the shutdown.
Women contractors were also affected by the shutdown. According to Bloomberg Government, in FY2018 $768.8 million in federal contracts were awarded to women-owned small businesses. More than 38% of those contracts won by women were awarded by agencies impacted by the shutdown. These statistics are the direct costs, and the indirect costs are difficult to measure but felt by the women’s business community. Members struggled to keep their employees, meet payroll and get important approvals from government agencies.
Interestingly, most WIPP members I heard from did not necessarily see this through a partisan lens. They saw it through a practical lens- that government shutdowns are not a way to resolve disagreements. Unlike the media, I didn’t hear anyone declare “victory,” because really no one won. While members disagreed about the resolution to border security/immigration policies that ushered in the shutdown, everyone expressed weariness over the budget tactics of the last five years.
WIPP was on the case– we communicated the risks shutdowns mean for women owned businesses, especially government contractors. We urged Congress to include making small business contractors whole, given the length and difficulty of the shutdown. Lastly, we urged the Congress to pass legislation that prevents government shutdowns from happening. Both Republican and Democratic bills would put the government on a continuing resolution if the Congress could not get regular appropriations over the finish line in a timely manner.
As we advocate on behalf of women entrepreneurs, we know to expect rain. But we are equally hopeful. More women than ever were elected to this new Congress. A new Congress means new or reinvigorated leadership. The enthusiasm for women’s engagement in policy has never been greater. Just like our members, women elected to Congress will press for a practical approach. It does not mean that partisanship will go away—that is the stuff of politics. But we feel that “agreeing to disagree” has a much better shot at becoming the standard by which policies are measured with 131 elected women.
If you have never taken the step of contacting your elected officials, visiting their offices or inviting them to come to your business, now is the time. The result will be empowering. Preventing future shutdowns requires constituent communications as well as organizations that represent you. Don’t know how to start? Go to www.house.govor www.senate.gov. The websites will direct you to your elected officials based on your zip code. The women’s business community and the economy need your voice.
The nicest thing about rain is that it always stops.
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