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Merchant Ship Collective | The Launch Dock
“Where small businesses learn the truth about power, policy, and opportunities that actually matter.”
How Small Businesses Compete After PPPs Take Over
By the time most small businesses realize a Public–Private Partnership has taken over their sector, the decisions are already made, the systems already installed, and the long-term contracts already signed.
Many entrepreneurs look around and feel the same thing:
“It’s too late. The big players already won.”
But that’s not the full story.
PPPs may reshape the landscape — but they do not eliminate possibility.
There is still room for small businesses to reclaim space, rebuild presence, and carve new paths inside markets dominated by large private partners. The strategy simply has to be different than it was before.
This issue explains exactly how small businesses do that.
Understanding the New Landscape Is the First Step Back In
Once a PPP has taken control of an industry, the rules shift.
Processes become less transparent.
Technology becomes more centralized.
Decision-making becomes more automated or outsourced.
The biggest mistake small businesses make is trying to operate the same way they did before consolidation. But the market they’re returning to is not the market they left.
To regain space, entrepreneurs must understand:
Who the private partner is
What systems they run
What gaps they leave behind
What community needs remain unmet
What the government still cannot outsource
Once you understand the new power structure, you can begin navigating inside it — rather than fighting against it.
Find the Gaps Big Companies Don’t See (or Can’t Serve)
Every PPP leaves gaps.
Large vendors may run the big systems — but they don’t always meet local needs, maintain consistent quality, or provide personalized support.
Small businesses can reclaim space by identifying underserved areas:
Niche services the large vendor doesn’t offer
Localized needs they overlook
Follow-up work they don’t have capacity for
Specialized tasks the contract didn’t include
Community relationships they never built
These gaps are opportunities.
They become entry points back into the market.
And often, they become the foundation for long-term stability.
Build Relationships the PPP Can’t Replace
PPPs can control systems, but they cannot replicate true community connection.
Small businesses regain ground fastest when they strengthen (or rebuild) three types of relationships:
1. Community Relationships
People trust people — not contracts.
Small businesses with strong community presence regain influence that private vendors can’t buy.
2. Government Relationships
Even when a PPP is in place, agencies still need:
Local feedback
Supplemental vendors
Emergency backups
Public engagement
Subcontractors for overflow
A strong relationship with decision-makers creates openings where contracts alone do not.
3. Vendor Relationships
Large partners often subcontract out pieces of work — not because they want to, but because they must.
Small businesses that build credibility with the PPP itself can find subcontracting opportunities the public never sees.
These relationships turn invisible doors into visible pathways.
Position Yourself as the Anti-Contract Problem Solver
One of the most effective strategies small businesses use is becoming the solution for the problems PPP contracts don’t solve.
Every big vendor eventually creates frustration:
Slow response times.
Limited customization.
Corporate call centers.
Delayed repairs.
Unmet local needs.
Small businesses can become the “fixers”:
The company that shows up immediately
The vendor that knows the community
The provider that offers what the contract doesn’t
The partner that fills the cracks
Over time, agencies learn that the PPP handles the baseline — but small businesses handle the real work.
That dynamic builds long-term leverage.
Use Public Processes to Reopen the Door
Even after consolidation, PPPs are not invincible.
Contracts still:
Expire
Require performance reviews
Face audit cycles
Must comply with local rules
Can be challenged through public comment
Small businesses can:
Attend renewal hearings
Request performance reports
Submit concerns about vendor quality
Advocate for contract unbundling
Push for local set-asides
Encourage alternative purchasing options
These actions won’t always overturn a contract — but they can influence future requirements, create accountability, and open doors that were previously closed.
Small businesses become part of the policymaking process, not just subjects of it.
Offer What PPPs Cannot: Human-Centered Expertise
Large corporations can scale.
They can centralize.
They can automate.
But they cannot replicate the most powerful advantage small businesses have:
Human-centered service and deep knowledge of local context.
Your value is not in replacing the PPP —
your value is in offering what the PPP cannot consistently provide:
Flexibility
Personalization
Community credibility
Rapid support
Tailored solutions
Authentic relationships
These become the pillars of your competitive edge.
The Path Back Is Not Easy — But It Is Real
Many small businesses believe that once PPPs take over, the game is over.
But the truth is simpler and far more empowering:
The game changes — and you change with it.
Once you understand:
The gaps they leave
The weaknesses they hide
The systems they depend on
The relationships they fail to build
…you begin to see opportunities everywhere.
PPP dominance is not the end of local business.
It is the beginning of a different kind of strategy — one built on insight, agility, and community.
Call to Action
Next week in The Launch Dock, we reveal the next piece of the PPP series:
✅ The “PPP Cycle” — how these partnerships form, expand, fail, and get replaced
✅ How small businesses can time their moves around this cycle
✅ Where the biggest openings appear for local vendors
Understanding the cycle is the key to understanding the future.
In solidarity,
Lyndsay LaBrier
The Merchant Ship Collective
References
Government Accountability Office. (2021). COVID-19: Emergency contracting and the need for transparency. https://www.gao.gov
United States Department of Health & Human Services. (2022). Public health data infrastructure modernization update. https://www.hhs.gov
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