Current research is cited in this exploration of the impact of environmental, attitudinal, and social-psychological factors on the career development potential of individuals with handicaps severely limiting to daily functioning. First, the words "disability" and "handicap" are defined, demonstrating that an individual may be handicapped by environmental factors, such as architectural barriers, or by social-psychological factors, such as stereotyping and the resultant lack of self-esteem, as well as by a physical or mental disability. The report then discusses the use of labels, the concept of "spread" (the misperception that the total person is impaired by a disability), and the psychological difficulties encountered by disabled persons confronting new situations in the face of public misunderstanding. It is noted that these factors reinforce negative attitudes, restrict disabled persons to minority-type sub-groups, and create a pattern of succumbing to, rather than coping with, disabilities. The next section discusses the failure of current training programs to provide instruction in all career development competencies, i.e., daily living and personal-social sskills, as well as occupational skills. Job stereotyping and the resultant elimination of self and career exploration are also discussed. The paper concludes with recommendations for an integrated program of career development to involve the entire community and instruction in all competencies. (JP)