The set-asides exist — finding them is the hard part
Governments are required to direct a meaningful share of contracting to small businesses, and there are reserved categories for service-disabled veteran-owned, women-owned, HUBZone, and 8(a) firms. The opportunities are real and they are recurring. The challenge is that they are spread across federal and state systems, and finding the ones reserved for a firm like yours means knowing where to look and checking constantly.
Most small contractors simply do not have the hours. So they pursue the occasional bid that happens to cross their desk and leave the rest on the table — work they were eligible for and could have won.