Who Hires Veteran-Owned Businesses?

Scott StultsMay 29, 2008

A couple of days ago I did some competitor research. My goal was to see a five-year timeline of SDVOSB’s that were operating in our NAICS (541519, 541512, 541511, 519130, and 518210). The metrics I was looking for were total income, employees, and federal contract award amounts. From this I hoped to draw some comparison to us.

After navigating a metric shit-ton of reports, statistics databases, and spreadsheets, I was only able to come up with the table below (which is about a third of my goal.) It’s based on a 2002 survey of small, minority, and women-owned businesses. In particular, the section I’m including represents veteran-owned businesses. There is a section of the original table that does not account for veteran status, so a comparison could be made to show its affect on customer distribution. (By the way, they do this survey every 5 years and are doing one now. The new data won’t be published for about 3 years.)

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2002 NAICS code

Kind of business and types of customers

Employer respondent firms

Number

Percent

Total

RSE

Total

SE

51 INFORMATION

Types of customers, total

4,457

4

X

X

Federal government

X

X

3.7

0.4

State and local government

X

X

12.3

1.6

Export sales

X

X

2.5

0.6

Other businesses/organizations

X

X

73.3

3.8

Household consumers/individuals

X

X

26.0

1.2

All others

X

X

12.6

1.1

Item not reported

X

X

1.4

1.0

54 PROFESSIONAL, SCIENTIFIC, & TECHNICAL SERVICES

Types of customers, total

79,207

-

X

X

Federal government

X

X

3.8

0.2

State and local government

X

X

9.5

0.2

Export sales

X

X

1.1

0.1

Other businesses/organizations

X

X

59.0

0.7

Household consumers/individuals

X

X

39.5

0.5

All others

X

X

21.2

0.4

Item not reported

X

X

2.0

0.1

Table 1: Customer Types for SDVOSB’s

If conclusions can be drawn from this, I’d say that:

  1. These businesses were 3 to 4 times more successful at contracting at the state and local level
  2. “Other businesses” were their mainstay…
  3. Followed closely by individuals.

Of course, there are some other considerations that are not factored into these numbers. I’d really like to know if either mentor-protégé programs or teaming arrangements affect the distribution. Also, there is an increasing trend of federal procurement through large, multiple-award “contract vehicles” which could raise the barrier for small businesses.




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