What is a veteran-owned small business?
A veteran-owned business is a small business that’s majority-owned by at least one veteran. Veteran-owned businesses may be eligible to qualify for a veteran-owned small business certification (VOSB). According to the U.S. Department of Veterans Affairs (VA), veterans must own at least 51% of the organization and they must be actively managing the business’s daily operations. Earning this certification may mean veterans have a competitive edge over other companies when it comes to receiving government contracts and attracting additional customers to their business.
In 1999, the Veterans Entrepreneurship and Small Business Development Act was passed to provide assistance to veterans who wanted to operate and run their own small businesses after their time in the service. The VOSB was initially started to provide veteran-owned businesses with top advantages to various government contracts and any other subcontracting opportunities.
Benefits of getting certified
There are numerous benefits to getting certified as a veteran-owned business. Some of these may include:
- Potentially receiving high priority for government contracts: If your business works with government entities, then you may be entitled to receive government contracts, as the federal government must provide 23% of all its contracts to small businesses — 3% of which typically go to service-disabled veteran-owned small businesses.
- Attracting more customers in the community: For businesses that don’t require any government contracts, you still may receive assistance to expand your business and brand awareness within your community. Many customers are interested in supporting a veteran-owned business. When you display your certification outside of your store or on your company website, you could potentially draw more customers to your business.
- Earning more business from corporations: Many corporations that see small businesses with a VOSB certification may prioritize them over other companies. This means you may see a significant increase in sales if corporations use your business to purchase bulk items of office supplies, food or any other necessary office materials.
How to potentially qualify for a VOSB certification
To receive your VOSB certification, there are specific qualifications you must meet. If you’d like to qualify for the Service-Disabled Veteran-Owned Small Business program, which is offered specifically to veterans injured while serving, you must meet certain qualifications as outlined by the Department of Defense (DoD) and prove that you have a service-connected disability.
See if you qualify for other veteran-owned business programs
Here are some other types of assistance and opportunities you could potentially take advantage of as a veteran-owned business:
- State certification: Some states offer a separate veteran-owned business certification that entitles veterans to additional government assistance. Research your state certification laws to learn more.
- National Veterans Business Development Council: This not-for-profit foundation is a third-party veteran-owned program that requires several documents and a fee depending on your company’s size.
- U.S. General Services Administration: Focusing solely on disabled veterans, this certification grants access to federal contracts and subcontracts as well as top priority for all federal opportunities. Veterans with any degree of disability may be eligible to qualify.
