Buying from veteran-owned businesses: a procurement guide

Why buy from veteran-owned businesses?

Veteran-owned businesses bring skills learned in service, including planning, reliability and working under pressure, to civilian supply chains. Most are small and medium-sized enterprises. Buying from them keeps spending within the armed forces community and gives buyers a practical way to act on commitments made under the Armed Forces Covenant.

For many organisations, choosing veteran-owned suppliers is also a visible way to show support for the forces community to staff, customers and bidders. It should sit alongside, not replace, normal checks on price, quality and capability.

How does social value work under the Procurement Act 2023?

The Procurement Act 2023 came into force on 24 February 2025. For central government, PPN 002 requires social value to count for at least 10% of the total evaluation score in procurements started under the Act from 1 October 2025, using a social value model of approved outcomes chosen for relevance to each contract.

GOV.UK defines social value as the additional social, economic or environmental benefit that can come from the way a supplier works with its staff, suppliers, community or the environment when delivering a contract. It must be over and above the core deliverables.

The PPN 002 social value model does not score suppliers for being veteran-owned in itself. It does ask buyers to avoid barriers to entry for SMEs and voluntary, community and social enterprises (VCSEs), which covers most veteran-owned businesses. Suppliers can offer relevant social value commitments, such as employment and training opportunities, through their bids.

PPN 002 applies to central government departments, executive agencies and non-departmental public bodies. Other public bodies, including local authorities, follow their own social value policies under the Public Services (Social Value) Act 2012 and the Procurement Act.

What does the Armed Forces Covenant mean for buyers?

The Armed Forces Covenant is a voluntary pledge any organisation can sign. Signatories commit that members of the armed forces community should face no disadvantage compared with other citizens in public and commercial services. Many signatories add specific pledges, and supporting veteran-owned suppliers is one practical way to deliver on them.

GOV.UK publishes a searchable list of Covenant signatories and their pledges. Signing the Covenant can also lead to recognition under the Defence Employer Recognition Scheme. See our guides to the Armed Forces Covenant for small businesses and the Defence Employer Recognition Scheme.

How can I find veteran-owned suppliers?

Use the British Veteran Owned directory to search verified veteran-owned businesses by industry, location and service branch. Every listing has been checked by our team before it goes live. It is free to use and free for businesses to join, so no supplier appears higher because it paid.

Browse by sector or region from the directory, then contact suppliers directly. Many list their website, services and service background on their profile.

If you cannot find the supplier you need, tell the businesses you already work with. Veteran-owned businesses can apply for free verification at any time.

What does British Veteran Owned verification prove?

The British Veteran Owned hallmark confirms that a real person on our team has checked evidence that the business is majority-owned by a UK veteran, reservist or eligible family member. It does not assess quality, insurance, financial standing or specialist accreditations. Buyers should still carry out their usual due diligence.

Evidence of service is never published. If you have concerns about a listing, contact us.