A method for predicting the annual work capacity of disadvantged business enterprises (DBEs), both individually and collectively, is presented that considers variables used to predict failure of small businesses. The method presented is exploratory in nature, with more data needed to further adjust and validate the prediction model. An analysis of complete financial data for DBEs that have terminated their operations would help in this validation process. The problems are (1) obtaining financial data of such distressed firms and (2) high likelihood that such DBE firms did not keep reliable financial statements that conform to acceptable quality standards.