Service-disabled veteran-owned small businesses (SDVOSBs) are transforming the business landscape. From my own journey as a veteran, there is a unique opportunity to leverage military experiences to drive innovation and economic growth.
Have you ever considered who's behind the innovative companies or investment funds you encounter? In today's dynamic business landscape, the concept of a "certified service-disabled veteran owned small business" (SDVOSB) is becoming increasingly relevant. But what exactly does this designation mean, and why should it matter to you as a consumer, investor, or fellow entrepreneur or innovator?
Honoring Service with Opportunity: The SDVOSB Advantage
The SDVOSB designation recognizes businesses that are at least 51% owned and controlled by a service-disabled veteran. This veteran must have a service-connected disability rated at least 10% by the Department of Veterans Affairs (VA). The SDVOSB program aims to empower veterans who served our country to thrive in the business world. These entrepreneurs bring a unique blend of leadership, discipline, and resilience honed through their military experience. Before we dive in you might be thinking, why is this important?
During my time in Afghanistan while looking for roadside bombs and opening economic pathways for farmers and entrepreneurs we encountered folks who wanted to do harm to their own people and prevent agricultural entrepreneurs and small business owners from creating sustainable businesses. I am happy to chat openly about my time overseas over Bourbon sometime - feel free to reach out.
From Ranger School to Airborne and my service in Germany and Afghanistan with two different Two Star Generals in the US Army Corps of Engineers, I wouldn’t change my path. These experiences led me to become a founder, grow a Venture Capital Fund of Funds, and innovate in the corporate ecosystem. It's all about enabling economic pathways—from the 'third largest watershed in the world' (thanks to MG(R) Walsh, one of the most influential and empathetic leaders I've served under) to the bomb-lined roads of Afghanistan, to the challenges founders and corporations face today in opening economic pathways globally.
Beyond the Badge: The Value Proposition of SDVOSBs
Supporting Veterans, Supporting America:
Choosing an SDVOSB strengthens the American economy by fostering entrepreneurship among veterans who have bravely served our nation. It allows them to leverage their skills and experience to create jobs and contribute to the overall well-being of their communities. When we look for founders there is a common thread that they all must have - grit. This ability to persevere and to overcome obstacles that are thrown at them from markets, regulation, customers, macro economic trends and investors is essential to growing businesses. Sometimes that means directly investing into Veteran founders (like Sheri Atwood from Support Pay). It could also mean working with corporate innovators who have grasped that grittiness to break through barriers and work with their boards for what is best for their organization or ecosystem. Grit is essential in their work overcoming obstacles that are seemingly hidden or pop up with little to no time to react all while building trust, transparency and communication to all the stakeholders involved.
Commitment to Excellence:
Veterans are known for their dedication, work ethic, and commitment to success. These qualities naturally translate into their businesses. SDVOSBs are often driven by a strong sense of purpose and a desire to build something meaningful, with a keen focus on excellence.
A new era of founders and funders:
By supporting SDVOSBs, you contribute to a more diverse and inclusive business landscape. This not only fosters innovation but also ensures that a wider range of voices and perspectives are represented in the business world. My father was a Vietnam era veteran. It pains me to reminisce on how his peers were “welcomed” back into society after serving in the military. Much of that has changed - where his peers changed from their uniform into civilian clothes when coming back stateside in fear of being spat on - my soldiers were welcomed back with much more grace and acceptance and are now valued because of their tenacity and determination.
Access to Contracts:
The federal government aims to award at least 3% of all prime contracting dollars to SDVOSBs each year. These set-asides create valuable opportunities for SDVOSBs to compete for government contracts, which can significantly boost their growth. This quite literally opens a potential multi-billion dollar opportunity each year.
Beyond the Label: A Deeper Look at My Journey
As a certified service-disabled veteran myself, I can personally attest to the unique advantages and challenges of running an SDVOSB. The leadership skills I honed during my service have proved invaluable in navigating the complex world of venture capital and innovation. From leading alongside senior military and non-commissioned officers (NCOs) who were years ahead of me in experience all the way down to the high school dropouts with young families, giving them the confidence, tools, training, and leadership necessary to both accomplish the mission and bring all of them home safely. I am very thankful and blessed that all of the men and women I led into combat came back safely to be with their families and friends. The discipline and focus instilled in me by the military continue to be guiding principles in every investment decision we make.
However, being an SDVOSB also comes with its own set of hurdles. Navigating the certification process can be complex, and competing in a crowded marketplace requires constant innovation and hustle. All that said there has been progress over the last few years to reduce complex barriers to obtaining your service disabled veteran owned status. You can now attain certification in a matter of weeks if you have all of the necessary documentation both of your service past and your company at hand.
Despite the challenges, I believe that SDVOSBs have the potential to make a significant impact on the future of American business. As more and more consumers become aware of the benefits of supporting SDVOSBs, we can create a win-win situation for both veterans and the economy as a whole.
Investing in Innovation: The Role of My SDVOSB Venture Capital Fund
My venture capital fund, Render Capital, specifically focuses on investing in early-stage companies with innovative solutions that tackle legacy industries and archaic models in Middle America. It's a way for me to leverage my expertise as a battle tested founder/funder and corporate innovator while contributing to innovation in areas that matter most to the founders and companies we serve.
Innovation Studio: Cultivating the Next Generation of Entrepreneurs
In addition to the venture capital fund, my corporation also operates an innovation studio - Render. This studio provides executive training, management consulting, mentorship, and resources to aspiring intrepreneurs. These intraprenuers are innovators inside the walls of corporations that are pressing to drive top line revenue growth and spin out products/services or bring in technologies that help drive growth. Oftentimes this means we are in boardrooms of middle market companies or working directly with the CXO’s of organizations guiding, coaching, and facilitating sessions that can help them dive deeper into building their own Business Operating Systems and Innovation Operating Systems.
The SDVOSB program is about more than just a certification, it’s about building a stronger future together. It's a testament to the strength, resilience, and entrepreneurial spirit of America's veterans. As a certified SDVOSB business owner, I'm committed to using my platform to empower other veterans and contribute to a more innovative and inclusive future for us all.
How You Can Get Involved:
Support SDVOSBs:
When making purchasing or investment decisions, consider seeking out certified SDVOSBs. You can find a directory of SDVOSBs through the Small Business Administration (SBA) website.
Spread Awareness:
Share information about the SDVOSB program with your network. The more people who understand the benefits of supporting SDVOSBs, the stronger the program will become.
Invest in the Future:
If you're an investor, consider allocating a portion of your portfolio to funds managed by SDVOSBs. Or if you are a corporate innovator, consider working with more SDVOSBs to support technology integrations or enable their solutions (like SupportPay) in your existing P&Ls and business lines to support your own employees and their families with solutions built by our nation’s veterans!
I Am a Service Disabled Veteran - How do I Get Certified?
Create an account: create your account here!
You'll need:
Your company’s operating agreement.
Your capitalization table (cap table) and details of any equity awards to advisors, investors, or team members. (Note: The service-disabled veteran must own and control 51% of the company to qualify as an SDVOSB.)
Board minutes showing your appointment and/or your directors' appointments, and the decision-making matrix. This should be included in your operating agreement to demonstrate that the veteran owner controls daily operations.
Your VA letter of qualified disability status: download here.
If not enrolled in VA Health Benefits, you can:
Visit a local VA Hospital: Find locations
Enroll online at VA.gov
Contact Disabled American Veterans (DAV): Find a DAV office
For entrepreneurial support, consider joining DAV's Patriot Bootcamp.
Follow up with your appointed business advocate:
After submitting all forms and documents, you will be assigned a business advocate who will follow up on any additional documentation or clarification needed to become a certified Service Disabled Veteran Owned Small Business.
Note: The VA/SBA defines "small business" broadly. Most businesses with under 500-1,000 employees qualify. Learn more here.
One final ask, share this with veteran business owners and procurement teams to highlight the benefits of working with a Service Disabled Veteran Owned Business. Whether you are a veteran or support veterans scaling their businesses thank you for all you do to make and continue to grow economic pathways!If you have any questions, comments, ideas or other resources we should share I’m always available directly via Patrick@WorkWithRender.com.
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