VOSB

Definition

VOSB stands for Veteran-Owned Small Business, which is a designation given to small businesses that are at least 51% owned and controlled by one or more veterans. This classification is important within the context of the Small Business Administration (SBA), as it allows these businesses to access certain government contracting opportunities and programs designed to support veteran entrepreneurs.

5 Must Know Facts For Your Next Test

1. The VOSB designation is established and regulated by the U.S. Department of Veterans Affairs (VA) through the Center for Verification and Evaluation (CVE).
2. VOSBs can receive set-aside and sole-source contracting opportunities from the federal government, including the VA, which has a mandated goal of awarding at least 3% of its contract dollars to VOSBs.
3. To qualify as a VOSB, the business must be small according to SBA size standards, be at least 51% owned and controlled by one or more veterans, and have the veteran owner(s) actively involved in the daily operations and management of the firm.
4. VOSBs can participate in the VA's Veteran-Owned Small Business Verification Program, which provides third-party verification of their eligibility status.
5. Successful VOSB firms can leverage their designation to gain a competitive advantage when bidding on government contracts, as well as access to SBA loan programs and other small business assistance.

Review Questions

• Explain the purpose and benefits of the VOSB designation within the context of the Small Business Administration.
  • The VOSB designation is important within the SBA because it allows veteran-owned small businesses to access specific government contracting opportunities and programs designed to support them. VOSBs can receive set-aside and sole-source contracts from the federal government, including the VA, which has a mandated goal of awarding at least 3% of its contract dollars to VOSBs. Additionally, VOSBs can leverage their designation to gain a competitive advantage when bidding on government contracts and access SBA loan programs and other small business assistance.
• Describe the eligibility requirements for a small business to qualify as a VOSB and the process for obtaining verification.
  • To qualify as a VOSB, a small business must be at least 51% owned and controlled by one or more veterans, with the veteran owner(s) actively involved in the daily operations and management of the firm. The business must also meet the SBA's size standards for a small business. VOSBs can participate in the VA's Veteran-Owned Small Business Verification Program, which provides third-party verification of their eligibility status. This verification process ensures that the business meets the VOSB requirements and can help the firm gain access to the associated contracting opportunities and benefits.
• Analyze the potential impact of the VOSB designation on the growth and success of veteran-owned small businesses within the broader context of the U.S. economy.
  • The VOSB designation can have a significant impact on the growth and success of veteran-owned small businesses, which in turn can contribute to the overall strength of the U.S. economy. By providing access to government contracting opportunities and targeted small business assistance programs, the VOSB designation helps to level the playing field for veteran entrepreneurs and supports their efforts to start, grow, and sustain successful businesses. This can lead to job creation, economic development, and the empowerment of the veteran community, ultimately strengthening the nation's economic resilience and competitiveness. The VOSB program is a critical component of the SBA's efforts to support small businesses and foster entrepreneurship among underrepresented groups, including military veterans.

Related terms

Service-Disabled Veteran-Owned Small Business (SDVOSB): A VOSB where the owner(s) have a service-connected disability, which provides additional benefits and set-asides within government contracting.

Veteran Entrepreneur: An individual who has served in the U.S. military and has started or is running their own small business.

SBA 8(a) Business Development Program: A program run by the SBA that provides business development assistance to small disadvantaged businesses, including some VOSBs.