Draft - General Recommendation, Accelerate the adoption of IoT technologies manufactured by 

small business and startup organizations.

Recommendation XX: Accelerate the adoption of IoT technologies manufacturered by 

small business and startup organizations through targeted Federal Government 

programs, policies, procedures, and funding methods. 

Description:

The federal government should accelerate the adoption of IoT technologies manufacturers by 

small business and startup organizations. This can be done via policies, procedures, and 

funding methods that specifically target them. It is particularly challenging for small businesses 

and startup companies in this sector that have to provide upfront capital and full understanding 

in successfully navigating opportunities both within the federal government and with federal 

government support to market externally. The process for these projects can also take many 

years to bring them from proposal to commercial operation and these companies may not have 

patient resources. 

Small businesses have the primary option of using a channel with existing relationships to cities 

to make sales which is also unpredictable and not very scalable. This makes it challenging for 

small businesses and startups. Federal funding mechanisms and procurements targeted to 

them can aid these companies so they can more effectively compete with larger organizations 

on RFPs relevant to their business. There are many existing Federal Government programs and 

policies that support small businesses and startup organizations. Rather than create from 

scratch, this recommendation advises tapping into these existing programs and have a 

dedicated IoT technologies track for related small businesses and startups in this space. 

Justification:

Greater adoption of IoT technologies manufactured by small businesses and startups could help 

in the following examples: 

• Incorporation of technologies enabled by IoT: Opportunities for IoT technologies are 

manufacturers by small business and startups across the IoT. For example, in smart, 

connected transportation these technologies include sensors, cameras, and edge 

computing devices that can improve safety in things such as vulnerable road users (i.e., 

pedestrians at crosswalks), traffic intersections, school, and work zones. Opportunities 

for IoT technologies in electrified transportation manufactured by small businesses and 

startups include in car systems or mobile apps that can locate charging stations, as well 

sensors that manage charging stations to gather data about usage and performance, to 

anticipate maintenance needs, and troubleshoot problems. 

• Greater competition across IoT markets: Making it easier for small businesses and 

startups to bid on projects and deploy their technology will increase their market 

penetration and provide end-users more technology options. This would lead to greater 

competition in selected markets providing end-users the ability to select manufacturers 
Draft - General Recommendation, Accelerate the adoption of IoT technologies manufactured by 

small business and startup organizations.

based on several factors such as cost, quality of products manufacturered, service, and 

innovation. 

Implementation considerations:

• The Federal Government could set aside easily and readily tappable funding pools yearround for innovation and next-generation technologies. Grants could be set aside for 

categories that the government deems high importance.

• The Federal Government could fast-track programs for startups and small companies to 

deploy this technology in pilots.

• The Federal Government should set up a system to make it easier for startups and small 

companies to find relevant funding sources like grants and SBIR awards.

• The Federal Government should encourage local governments to leverage its local startup 

accelerator network to develop technology and fast-track it to local adoption on successes. 

• The Federal Government could look into providing incentives and training to small 

businesses on IoT adoption themselves. These could include financial, but also profiling 

them and their work for marketing and promotion purposes that could benefit them and also 

encourage more people to adopt it. 

• The Federal can adopt a 'train the trainer' model where small business associations or start 

up incubators/coworking spaces/accelerators could support each other in IoT adoption. 

• The Federal Government can modify guidelines for grant programs and funding 

mechanisms already in existence for small businesses to allow for greater incorporation of 

IoT technologies. Examples include the following:

o The U.S. Department of Commerce, Minority Business Development Agency 

(MBDA) (https://www.mbda.gov/who-we-are/overview) 

o DOE Office of Small and Disadvantaged Business 

(https://www.energy.gov/osdbu/office-small-and-disadvantaged-business-utilization) 

o National Science Foundation Program for Small Business 

(https://www.nsf.gov/funding/smallbusiness.jsp) 

Potential implementation barriers:

● Time and Cost: The time and cost for this transformation could be considerable and 

small companies or startups may find it hard to continue the process. That is why 

targeted Federal Government programs and policies could provide greater incentive. 
Draft - General Recommendation, Accelerate the adoption of IoT technologies manufactured by 

small business and startup organizations.

● Education and Training: There is an overarching need to educate local governments and 

consumers on these new types of technologies which could be hard and time 

consuming, especially relevant for small businesses and startups

● Supply Chain: The manufacturing industry recognizes the goal from the Administration 

of Buy America, Build America (BABA) however, there are current constraints meeting 

domestic content requirements and there needs to be an appropriate ramp-up, phase in 

period to get to full production. Again, this could be particularly relevant for small 

businesses and startups. 

Possible participating agencies

● DOE/DOT Joint Office, DOT, DOE, NIST, DHS, GSA, Department of Commerce, among 

others. 

● Local Chamber of Commerce or Rotary Clubs with a national organization for 

coordination and local adoption

● Local Coworking spaces/accelerators/incubators like Tech Stars 

● Universities that have small business advisement and start-up support