Qualifications & Attributes of Successful SBIR/STTR Applicants

SBIR/STTR award winners exhibit many of the same attributes. Some of these attributes are actual program requirements, while others are characteristics or capabilities. There are always exceptions; some firms initially thought not to be good candidates have come through with strong capabilities and resolve, resulting in winning proposals.

U.S.-based Small Business

For-profit, U.S. companies only

Only for-profit, primarily U.S.-owned and U.S.-based companies are eligible for SBIR or STTR awards. Individuals or groups of individuals may initiate the proposal process before creating the company, but submissions are only accepted from and awards are made only to established business entities.

500 employees max

All applicants must meet the U.S. Small Business Administration’s definition of “small business concern” (SBC). In determining SBC status, affiliates and subsidiaries must also be considered. Suppose a company has a parent organization or is itself the parent of one or more sub-companies. In that case, these additional entities must be considered in determining whether the candidate company qualifies as a small business.

Innovative tech-enabled solution

The mission of SBIR is to address real-world problems through the investment of federal research and development dollars into entrepreneurial and innovative small businesses. The team should be looking at new, novel technology that is not currently available, requires research funding, and has the potential to form a successful commercial product. The key is in the answers to four questions:

1. Is the proposed idea truly innovative with commercial potential?
2. Does it address a significant real-world problem?
3. Can a research project be built around it?
4. Does the applicant bring technical expertise to the proposed project?

Organizational Athlete Mindset

Commit time, effort, and resources

A champion is recognized as an individual who has the authority and makes the commitment to pursue the program. Many potential candidates are excited to learn about the SBIR programs but aren’t interested in preparing the proposal. This approach is not recommended, because the employee or consultant assigned to the task seldom feels the same passion and commitment as the idea’s author. Additionally, whether in a new sole proprietorship or an established firm, top management must commit company priorities and resources to the project.

Build technical capacity and assemble a strong team

Proposals must clearly explain how the work plan will be carried out. Applicants often build teams of recognized experts in their field of study because few SBCs have the resources to perform all needed activities. University faculty/researchers are particularly favored as teaming partners, but industry-based experts can also be used. Rather than becoming formal “partners” in a business sense, they serve as consultants or subcontractors during the term of the proposed project. Proposals that fail to present a team approach are often downgraded by reviewers.

Embrace a steep learning curve

Though not a requirement, SBIR applicants with experience preparing and submitting proposals tend to be better candidates. The key exception is a company with a true champion on board; someone with the willingness and authority to tackle the learning curve.

Financial Diversification

The SBIR program may be an excellent opportunity to obtain financial support for innovative technology research, development, and commercialization. However, the program is neither a quick nor a guaranteed source of funds. As such, applicants are encouraged to develop a comprehensive funding and financial strategy for their product development and have a strong focus on commercialization.