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SDVOSBs Appear to Face Unique Barriers as Well as Barriers Faced by Other Non-Traditional Suppliers and Small Businesses

• Service-disabled veterans have lower self-employment than veterans in general and than non-veterans, and the number of SDVOSBs is unlikely to increase.
• The level of priority placed on the program faces several challenges. As with other programs, the policy lays out goals rather than requirements, competing goals from other programs may limit set-asides for SDVOSBs, and limited oversight of subcontracting goals means that prime contractors do not have to include SDVOSBs in awarded work.
• SDVOSBs, especially new ones, may also confront the barriers faced by small businesses in general and non-traditional suppliers.
• Although some sources of support for dealing with these barriers exist, they are limited.
• Given these barriers, many SDVOSBs interviewed are disillusioned with the program. If widespread across SDVOSBs in general, this disillusionment may limit federal contracting rates further.

The report investigates the barriers that service-disabled veteran-owned small businesses (SDVOSBs) may face when attempting to contract with the federal government and the Department of Defense. The government and DoD goals are to award 3 percent of prime-contract dollars to SDVOSBs but current contracting falls below that level. The authors assess the characteristics of service-disabled veterans that support successful business ownership and identify possible barriers to meeting the 3 percent goals.

• Chapter One

  Characteristics of Veterans and Service-Disabled Veterans and Their Potential Effect on the Supply of SDVOSBs

• Chapter Two

  Interview Approach and Results

• Chapter Three

  Summary of Findings and Recommendations

• Appendix A

  Logistic Regression Methodology and Analyses

• Appendix B

  Interview Protocols