Extanto Technology recently received Oregon Small Business Enterprise, or OSBE, certification. That may sound like a modest administrative milestone, the sort of thing that arrives in an inbox and then disappears into a folder marked “compliance,” but Oregon’s new designation is part of a larger shift in how states think about public contracting, local business growth and who gets a shot at a piece of the government pie.1
OSBE is a state certification for Oregon-based small businesses that meet size and revenue standards set by the Certification Office for Business Inclusion and Diversity, or COBID.1 Unlike many small and disadvantaged business designations, Oregon’s new set of standards is race- and gender-neutral, which matters because it reflects a newer policy direction. Instead of limiting the program to a particular ownership group, Oregon created a broader small-business category that can be used across state procurement. Essentially, the state is trying to make it easier for agencies to find qualified local small firms and spend more of their procurement dollars with them.2
This idea didn’t appear out of thin air. Oregon created OSBE as part of a larger Small Business Procurement Program following legislative action and broader discussions about how state purchasing can either widen opportunity or continue to steer work toward the same large vendors year after year.3The state describes the program as a way to increase economic opportunities for small businesses and to build a procurement system that gives more Oregon firms a realistic opening into public work.4 It’s hopefully a practical response to a very old problem.
For businesses like Extanto, the immediate value of OSBE is pretty straightforward. Certification can improve visibility with public buyers, create access to solicitations that favor or target certified small firms, and place the company in a stronger position when agencies are looking for vendors to help meet small-business spending goals.4 But that doesn’t mean contracts suddenly rain down from the heavens. Public procurement has never exactly been famous for its spontaneity. It does mean the company is easier to find, easier to count and easier to justify selecting when the state is trying to spread opportunity more deliberately.
But do programs like this actually work? The best evidence comes from the broader ecosystem of small-business certification and set-aside programs that have been studied over the last decade, especially at the federal level. A U.S. Small Business Administration (SBA) economic impact study found that in fiscal year 2021, small-business and related set-aside procurement programs supported about 1,333,679 jobs, generated $310.7 billion in total economic output, and contributed $184.9 billion in value-added to the economy.5 That’s real economic impact suggesting that when government purchasing is structured to include small firms, the effect expands well beyond the firms that win the contracts.
That larger economic case matters because small businesses already play an outsized role in job creation. U.S. data shows that small firms account for roughly 46 to 47 percent of private-sector employment and have produced about two-thirds of net new jobs over long periods of time.7 More recent Bureau of Labor Statistics reporting found that from 2021 through the middle of 2024, small businesses generated 52.8 percent of net job creation, and in some quarters they were doing nearly all the heavy lifting.8 In Oregon, believe it or not, that number is closer to 70%. When a state creates clearer paths for those firms to win public business, it’s doing more than redistributing contracts. It’s putting purchasing power behind the chunk of the economy that tends to hire, adapt and expand locally.
That helps explain why states across the country keep building these programs, even when the paperwork can be annoying and the acronyms begin to multiply like rabbits. The successful programs usually share a few traits. They connect certification to actual buying decisions rather than treating it as a badge with no real purpose. They set targets, track results and give procurement staff a reason to use the system.4 9 They also pair certification with outreach and technical help, because many small businesses lose due to slow, opaque public purchasing cycles that are packed with requirements that make perfect sense to procurement officers but are as clear as mud to everyone else.9
OSBE is still new, so there is not yet a decade of program-specific outcome data to cite. Still, the structure Oregon has adopted follows a model that has shown measurable results elsewhere: define who qualifies, build that definition into procurement rules, and create targets that agencies have to meet.4 9 If the state follows through, the benefits should extend beyond individual firms. More local vendors in state contracting can mean more in-state payroll, more local reinvestment and a public purchasing system that reflects the actual mix of businesses in Oregon rather than just a narrow slice of it.6
So, is OSBE worth the hassle? For companies that have no interest in public-sector work, probably not. For companies that do, however, the answer is absolutely. The application takes time, and certification alone will not close a deal. But if Oregon is serious about directing more public spending toward qualified small businesses, then OSBE changes the odds in small business’ favor. It creates access and credibility, and places firms like Extanto on the crest of a policy shift that is still forming. That may be the most interesting part. The designation matters today because it can open doors, but its bigger significance may lie in what it says about where state procurement is headed next.
Citations
- Oregon Business, “Oregon Small Business Enterprise (OSBE) Certification,” https://www.oregon.gov/biz/programs/cobid/osbe/pages/default.aspx
- Oregon Governor’s Office, “Oregon to do more to prioritize small businesses in state procurement,” July 24, 2025, https://apps.oregon.gov/oregon-newsroom/OR/GOV/Posts/Post/governor-kotek-signs-bill-to-expand-economic-opportunities-for-small-businesses-through-state-contracting
- Oregon Legislature, “Small Business Procurement Program,” public testimony document, http://olis.oregonlegislature.gov/liz/2025R1/Downloads/PublicTestimonyDocument/157008
- Oregon Department of Administrative Services, “Procurement Transformation Initiative Briefing,” March 2026, https://www.oregon.gov/das/Docs/Initiative-Briefing-March-2026.pdf
- U.S. Small Business Administration, “FY 2021 Economic Impact Study: Small Business and Type of Set-Aside Procurement Programs,” https://www.sba.gov/document/report-fy-2021-economic-impact-study-small-business-type-set-aside-procurement-programs
- USAFacts, “What role do small businesses play in the US economy?” October 25, 2023, https://usafacts.org/articles/what-role-do-small-businesses-play-in-the-economy/
- SBA Office of Advocacy, “Small Business Job Creation,” April 2022, https://advocacy.sba.gov/wp-content/uploads/2022/04/Small-Business-Job-Creation-Fact-Sheet-Apr2022.pdf
- U.S. Bureau of Labor Statistics, “Small businesses continue to outpace large businesses in job creation,” May 7, 2025, https://www.bls.gov/opub/ted/2025/small-businesses-continue-to-outpace-large-businesses-in-job-creation.htm
- Bipartisan Policy Center, “Supporting Small Business and Strengthening the Economy,” https://bipartisanpolicy.org/wp-content/uploads/2021/06/Small-Business-Report_RV1-FINAL.pdf
