1. Federal Contracting

The order builds on a previous Executive Order focused on making federal contracting more equitable by directing all federal agencies to increase competition in their procurement and spending decisions. Smaller businesses often have difficulty applying for federal contracts because of burdensome requirements and regulations. This initiative will create more opportunities for small businesses to apply for and receive them. In a Tweet, the US Hispanic Chamber of Commerce applauded the Executive Order by saying, “competition in the American economy. It has 72 initiatives by federal agencies and opens new doors for small minority-owned businesses in the U.S. supply chain and federal procurement opportunities.”

2. Healthcare Costs and Drug Prices

recent survey of small business owners found that 87% believe it is important that the Biden Administration and Congress take action to lower prescription drugs costs and 55% of businesses providing coverage to employees say the rising costs of healthcare have delayed growth opportunities. The Executive Order also instructs the Food and Drug Administration, Federal Trade Commission (FTC), and the U.S. Patent and Trademark Office to identify and address anti-competitive behaviors and patent abuses that impede price competition from generic drugs and biosimilars. More competition will lead to lower drug prices.

3. Non-compete Agreements

Being able to freely move to another job or leave to start a business is a critical piece of an entrepreneur-driven economy. However, millions of Americans in a wide range of industries are required to sign non-compete agreements when they take a job. Not only does this make it harder to leave for a better-paying position, it also makes it more difficult for them to take their ideas and experience honed during a career and start their own business. President Biden’s Executive Order encourages the FTC to ban or limit non-compete agreements.

4. Repairing Appliances

Many companies prohibit consumers from repairing their products or taking them to a third-party vendor by invalidating their warranties if they do. This is costly and inefficient and stifles opportunities for small business repair shops. The order directs the FTC to issue rules making it easier and cheaper to repair items by limiting manufacturers from barring self-repairs or third-party repairs of their products.

5. Shipping Goods

In maritime shipping, the 10 largest shipping companies control more than 80% of the market, enabling them to charge American manufacturers hundreds of thousands of dollars in fees for the time their goods sit waiting to be loaded or unloaded. President Biden’s Executive Order encourages the Federal Maritime Commission to vigorously prohibit shippers from charging American exporters these exorbitant fees.

6. Unfair Marketing Practices by Online Platforms

Covid-19 showed us the important role going online and digital tools can play in helping small businesses grow or mitigate an unknown crisis. At the same time, we need to make sure we have strong federal rules that protect consumers and level the playing field for small businesses. Small businesses leverage and rely on the online marketing tools of larger technology companies’ platforms to reach customers. These companies can then study the small businesses’ products and how they sell, and in some cases, undercut the small business by creating their own copycat products and display them more prominently. President Biden directs the FTC to create rules barring this unfair practice.

Healthy competition is what makes the American Dream possible. If this Executive Order is fully implemented well, it has the ability to help produce thriving Main Streets and improve the quality of life for millions of Americans.