Veteran-owned businesses

Definition

Veteran-owned businesses are companies that are at least 51% owned, operated, and controlled by one or more veterans of the armed forces. These businesses not only contribute to the economy but also play a significant role in promoting supplier diversity, as they offer unique perspectives and experiences that enrich the marketplace.

5 Must Know Facts For Your Next Test

1. There are over 2.5 million veteran-owned businesses in the United States, contributing significantly to job creation and economic growth.
2. Veteran-owned businesses are recognized for their strong leadership skills and work ethic, traits often developed during military service.
3. Many corporations actively seek to include veteran-owned businesses in their supply chains as part of their commitment to supplier diversity.
4. Veteran-owned businesses can benefit from various programs and resources designed to support them, including access to government contracts and funding opportunities.
5. The federal government has set a goal of awarding at least 3% of all federal contracting dollars to service-disabled veteran-owned small businesses each year.

Review Questions

• How do veteran-owned businesses enhance supplier diversity within the marketplace?
  • Veteran-owned businesses enhance supplier diversity by bringing unique insights and experiences gained from military service into the marketplace. Their contributions help create a more inclusive supply chain that reflects the diversity of consumers. By integrating veteran-owned companies into procurement processes, organizations can foster innovation and broaden their network of suppliers, ultimately leading to improved business performance.
• Discuss the role of the Small Business Administration in supporting veteran-owned businesses.
  • The Small Business Administration plays a crucial role in supporting veteran-owned businesses by providing resources such as funding opportunities, training programs, and guidance on navigating government contracting. The SBA offers specialized programs aimed at helping veterans transition to entrepreneurship, which can include access to loans specifically designed for veteran business owners. Additionally, the SBA helps facilitate connections between veteran-owned businesses and larger corporations seeking diverse suppliers.
• Evaluate the impact of federal contracting goals on the growth of veteran-owned businesses in the U.S.
  • Federal contracting goals have a significant impact on the growth of veteran-owned businesses by ensuring that these companies receive a fair share of government contracts. By setting a target of awarding at least 3% of federal contracting dollars to service-disabled veteran-owned small businesses, the government incentivizes agencies to engage with these enterprises. This not only provides vital revenue streams for veteran entrepreneurs but also promotes broader economic empowerment within the veteran community, fostering a culture of support and growth for those who have served.

Related terms

Supplier Diversity:

Supplier diversity refers to a proactive business program that encourages the use of diverse suppliers, including minority-owned, women-owned, and veteran-owned businesses, to create a more equitable supply chain.

Small Business Administration (SBA): The Small Business Administration is a U.S. government agency that provides support to entrepreneurs and small businesses, including resources specifically for veteran-owned businesses.

Service-Disabled Veteran-Owned Small Business (SDVOSB): A Service-Disabled Veteran-Owned Small Business is a specific designation for veteran-owned businesses where the owner has a service-connected disability, enabling them to access certain government contracting opportunities.