Business contracting opportunities for veterans and other military-affiliated entrepreneurs come in a variety of forms – consulting, business to- business services, wholesaling, and offering products or services through retailers are common ways these small businesses engage in procurement contracting. Especially for veteran-owned businesses (VOB) or service-disabled veteran-owned businesses (SDVOB), unique small businesses opportunities are available when contracting with government through preferential programs involving set-asides or certifications. Likewise, many large corporations recognize the agility, problem-solving, and reliability of military-affiliated business owners – especially in industries or business areas that benefit from the unique skillsets, knowledge, or experiences of military veterans.
This brief explores the ins and outs of procurement contracting from the perspective of military-affiliated small businesses, examining the differences between the government and corporate procurement landscapes. Using data from the 2024 National Survey of Military-Affiliated Entrepreneurs, this brief investigates the return-on-investment (ROI) from procurement contracting, summarizes effective strategies that military-affiliated entrepreneurs have used to maximize their ROI, and leverages these experiences to guide entrepreneurs and business ecosystems towards effective approaches to improve the procurement capabilities of military-connected small businesses.
Key Findings
Many VOBs have experience with contracting.
Almost half (47%) of all veteran entrepreneurs have engaged in procurement contracting. Of those who had sought or secured contracts, 92% had experience with government contracting and 60% had experience with corporate contracting.
Types of Government Contracts
Corporate contracts had a better ROI and higher profit margins.
VOBs reported a higher ROI for corporate (27% said corporate had better ROI) compared to government procurement (18% said government had better ROI). Almost half of VOBs (48%) reported that their profit margins were higher in corporate procurement, compared to only 18% who said government contracts had better profit margins.
Return on Investment
Profit Margin
Government contracting had higher barriers to entry, but higher revenue potential.
VOBs reported that government procurement required a higher initial capital investment (35-50% higher initial cost) but generated significantly more revenue (230-270% higher revenues).
| Main Challanges | |||
|---|---|---|---|
| Corporate | Government | Difference | |
| Complex Bidding Process | 24% | 60% | -36% |
| Compliance Requirements | 15% | 36% | -21% |
| Contract Approval and Negotiation Times | 36% | 53% | -17% |
| Difficulty Navigating Procurement Portals | 24% | 32% | -8% |
| Difficulty Meeting Contract Specifications | 6% | 13% | -7% |
| Limited Access to Key Decision Makers | 68% | 59% | +9% |
| Lack of Awareness of Available Contracts | 55% | 41% | +14% |
Veteran entrepreneurs told us that mentorship, networking opportunities, and better processes would enhance their ability to engage in procurement contracting.
Veteran entrepreneurs told us that their ability to do procurement would be enhanced by opportunities to connect with other VOBs and with the right people in the contracting organization, more streamlined and transparent processes, and reductions in barriers to entry – whether that is technological, bureaucratic, or financial.
Strategies for procurement readiness are critical to successful contracting. The military-affiliated entrepreneurs surveyed identified several opportunities to provide additional training, resources, or support for their procurement capabilities.
Highly rated resources included:
- Mentorship from experienced contractors (59%) and access to procurement networks (52%) were rated as the most potentially helpful resources for procurement readiness.
- Military-affiliated entrepreneurs identified procurement processes and requirements (56%) or market analysis and
opportunity identification (56%) as the top training topics of interest.
This would not be possible without the support of Walmart.
IVMF has joined forces with Walmart to deliver tools and resources to help illuminate a path to procurement for veteran and military spouse entrepreneurs. View the Procurement Readiness Resource page to become procurement ready and realize opportunities within private supply chain.
