If sequestration occurs, 52% of all job losses will come from small businesses, a study previously covered on ExecutiveBiz has forecast.
A KansasCity.com article details the struggles of a number of small business owners suffering from recession, and dreading the thought of lost federal business while highlighting aspects of that study.
Catherine Giordano, CEO of Knowledge Information Solutions says she relies on the federal government for 85 percent of her business and claims that if the mandatory cuts occur, they would be on top of an already 25 percent cut in government spending on her products from 2011.
Citing the George Mason University and Chmura Economics and Analytics report, the article says many companies will be indirectly affected by the automatic defense budget cuts set to slash federal spending by ten percent.
George Mason professor Stephen Fuller said many small companies aren’t even aware that they depend on federal contracts.
The study also said that sequestration will result in a loss of 157,000 federal contracting jobs, 800,000 subcontracting suppliers, wholesalers, and service providers.
Data from the Small Business Administration said that there are more than 130,000 small businesses federal contractors.