As the world’s largest purchaser of goods and services, the United States government implemented set-aside programs to expand access to federal contracts for small and disadvantaged businesses. The Historically Underutilized Business Zone (HUBZone) program is a federal small business certification administered by the U.S. Small Business Administration (SBA). It was designed to promote economic development in distressed areas by providing access to federal contracting opportunities. Despite ongoing efforts after 25 years, HUBZone businesses face persistent barriers that hinder federal contracting visibility. This study, grounded in the lived experiences of HUBZone-certified firms, examined the real-world barriers that impede participation. It further explored why the government continues to fall short of its 3% statutory HUBZone contracting goal from practitioner perspectives. Guided by the Resource-Based Theory (Barney, 1991), the research investigated how financial capital, human capital, and organizational capabilities influence a business's ability to navigate procurement barriers. The study centered on three research questions: RQ1: What significant challenges hinder HUBZone businesses in securing federal contracts? RQ2: How can HUBZone businesses overcome persistent barriers to improve their success in securing federal contracts? RQ3: What policy recommendations emerge from HUBZone business experiences that could enhance the program’s effectiveness?

A mixed-methods triangulation design was utilized, combining 37 in-depth interviews and 320 survey data from HUBZone business leaders. A dual-theoretical approach guides this study: RBT as the primary theoretical framework and an emerging conceptual lens, Symbolic Endurance, which is developed further in the discussion chapter. RBT provides an organizational lens to examine how internal firm-level resources influence procurement outcomes. Symbolic Endurance offers a complementary perspective explaining the emotional, cognitive, and behavioral processes that drive continued participation in a paradoxically perceived program.

Findings reveal that HUBZone certification alone is insufficient for procurement success. Participants reported enduring limited program enforcement, burdensome compliance, inadequate visibility, and resource gaps. However, some firms progressed through strategic partnerships or subcontracting, while many experienced symbolic fatigue and disillusionment. This study contributes to the literature on federal procurement inclusion by introducing a novel dual-theoretical lens and offering actionable policy recommendations to improve entry, participation, and performance of the HUBZone program.