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Small businesses may be forced to compete with investor backed companies
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The Wall Street Journal had an article detailing efforts by venture capitalists and angel investors to push the federal government to give them financial relief and access to programs reserved for "independent" businesses, in other words non-investor backed businesses.
As I detailed in this blog post, these efforts are not surprising considering President Obama appointed Karen Mills to the head of the Small Business Administration. Mills has a venture capital background and stated in her confirmation hearing she wanted to serve both traditional independent small businesses as well as those in the emerging "knowledge economy."
This is troubling to owners of independent companies because equity backed companies have inherent advantages such as access to capital, more sophisticated and far reaching connections, and often access to very sophisticated individual and groups for consulation and advice.
A true independent company may find competing for government jobs even harder if investor backed firms are allowed to bid for the same contracts.
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