Enhancing business performance: Case studies of small business leaders in the federal sector

Declines in federal spending from continuing resolutions and sequestration events during the 2011 -- 2014 time frame reduced and delayed government purchases of products and services from small business owners operating in the federal sector. These actions affected the survivability of many federal sector small businesses, yet some leaders thrived and grew their firm's revenues while others struggled or failed while operating under the same economic conditions. Exploring the successful actions that enabled leadership effectiveness during this time frame and under these business conditions was the dominant activity in this study. Examples of success practices included the use of rolling forecasts for financial planning because leaders must adjust monthly to unpredictable revenue streams resulting from federal budget uncertainty. Leaders must acquire and operate government-approved business management systems, follow un-optimized business processes codified throughout federal regulations, and invest in employees' education and experience so each meets minimum eligibility requirements for working on contracts. Leaders must also manage the real risk of the federal government terminating their contracts without explanation for its own convenience, and losing competitively awarded contracts in instances in which the government decides to insource that work from the contractor for its own benefit. The successful practices of federal sector small business leaders identified in this study are nuanced from commercial sector practices. This new research may facilitate the refining of operating models applicable for both the federal and commercial business sectors, with such understanding benefiting and enabling greater business success among struggling federal sector small business owners and leaders.