People ask me quite often. Should I partner with my wife / girlfriend and become a Woman-Owned small business or am I better off as Veteran-Owned? The answer is simple. Veteran. Period. Here’s why. 1st of all sheer numbers.
1) Veterans and Women both get 5% setasides. There are almost 70,000 WOSB’s compared to only 40,000 VOSB’s so there is almost twice the competition for Women.
2) Many purchasing agents are Veterans and Veterans stick together.
3) When you apply for the WOSB you will need to prove your wife / girlfriend is active in the business. If you apply for an 8A she had better be. Lying to the federal government about your wife being active in your business is not a smart move. When you get caught they can make you pay back all the money that your business received. There can be a fine of $10,000 – $100,000 per incident and you could face jail time.
4) I hate to admit it but there are purchasing agents that are sexist and will not award certain contracts to WOSB’s. I wrote an article on it last year. See the link below.
5) Common sense. If she leaves you she can take your business with her. You have had 8 girlfriends and have been married 3 times? Yes. Put the business in her name because she is “the one”.
6) The VA and the military often give preference to Veterans.
7) Service Disabled Veterans get an additional 3% = 8% total.
In a nutshell. Unless your significant other is a Service Disabled Veteran and a Minority or Native / Alaskan American and she will be active in the business you are better off as a VOSB.