Veteran entrepreneurs transitioning from military to civilian life possess unique skills that enrich the small business sector. Owning over 1.7 businesses in the United States, veterans enhance economic diversity and drive substantial economic growth, generating around $1 trillion annually. Veterans who seek financial freedom possess military skills which support entrepreneurship, including resilience, problem-solving, and adaptability. Strategic policies can leverage this valuable demographic of businesspeople.

The Story of Veteran Entrepreneurs in the U.S.

1. Participation Rates:
   • Veterans have historically been more entrepreneurial than non-veterans.
   • Millennial veterans show lower entrepreneurship rates compared to non-veteran counterparts and older veteran generations.
2.  Demographic Variations:
   • Millennial veteran entrepreneurs tend to be more diverse, with a larger share being women compared to previous generations.
   • Black and African American veteran entrepreneurs face higher denial rates from creditors and rely more on credit
     cards for business funding.
3. Barriers to Entrepreneurship:
   • Access to capital remains a significant challenge for veteran entrepreneurs, as well as regulatory hurdles (2022 National Survey of Military-Affiliated Entrepreneurs).
   • There is a lack of mentors and networks that align with the specific needs of veteran entrepreneurs.
   • Female veteran entrepreneurs face unique systemic barriers to success.
   • Adjusting from a military to a civilian business environment is a steep climb.
4. Supportive Entities include:
   • Non-profits like American Corporate Partners providing mentorship from Fortune 500 companies.
   • Educational programs like the Entrepreneurship Bootcamp for Veterans with Disabilities.
   • Resources for certification as veteran-owned businesses through the Office of Small and Disadvantaged Business Utilization.
   • D’Aniello Institute for Veterans and Military Families, offering resources and conducting research to support veteran entrepreneurs at many stages from ideation to growth (V-WISE, EBV, and Veteran EDGE).
   • SCORE Mentoring for Veterans has documented impacts showing veteran businesses overcoming significant barriers.

Remaining Challenges to Veteran Entrepreneurs

• Existing support mechanisms may not address needs of younger, more diverse veteran entrepreneur populations.
• The existing transition programs largely focused on employment rather than encouraging self-employment or entrepreneurship.
• Little help is available for military personnel starting businesses in their last couple years before military retirement.
• Long-term support is needed for a smooth transition to entrepreneurship.
• Existing programs provide targeted training and support, yet there is a need for broader reach and accessibility.
• Gaps remain in knowledge, resources, and support networks for veteran entrepreneurs.

Policy Options

• Enhance Support Programs: Develop and fund programs specifically tailored to the unique needs of veteran entrepreneurs, including millennial veterans and those with service-connected disabilities.
• Encourage Research and Policy Development: Support ongoing research initiatives like those conducted by the IVMF to continually assess and address the evolving needs of veteran entrepreneurs.
• Promote Veteran Business Ecosystems: Foster environments that support veteran entrepreneursthrough networking, mentorship, and access to capital.
  • Develop tailored transition programs focusing on entrepreneurship.
  • Offer practical, actionable business training alongside theoretical knowledge.
  • Facilitate networking opportunities with civilian businesses for veterans.
  • Provide resources for translating military skills and experiences into civilian business contexts.
  • Enhance access to mentors experienced in both military and civilian sectors.
  • Create platforms for veterans to share experiences and strategies for overcoming industry-specific challenges.
  • Implement policies to ensure entrepreneurial training is as comprehensive as employment transition support.

Resources:

1. National Veterans Foundation: Guide to Becoming a Veteran Entrepreneur – Provides comprehensive guidance for veterans transitioning to entrepreneurship, including resources and tips for success.
2. Operation Vetrepreneurship: Tracking Aspirations, Barriers, and New Ventures – A study by IVMF exploring the entrepreneurial journeys of veterans.
3. What Makes Veterans a Good Fit for Entrepreneurship: Veterans Entrepreneurs Resource Guide -Discusses the skills and experiences that make veterans suited for entrepreneurship.
4. Veteran Entrepreneur Portal: VA’s Resource for Entrepreneurs – A portal providing access to services and resources to support veteran-owned businesses.
5. Center of Excellence for Veteran Entrepreneurship: Dedicated Veteran Business Support – Aims to provide research, education, and resources for veteran entrepreneurs.
6. SCORE Mentoring for Veterans: Free Business Mentoring – Offers free business mentoring and education for veteran entrepreneurs.
7. DOD SkillBridge Program: Career Training for Transitioning Service Members – Connects transitioning service members to civilian work experiences.
8. D’Aniello Institute for Veterans and Military Families: Support and Resources for Veterans – Provides resources and programs for veterans and their families.
9. The State of Veteran Entrepreneurship Research: Latest Research and Insights – Provides insights into the current state of veteran entrepreneurship.
10. National Survey of Military-Affiliated Entrepreneurs 2022: Exploring Veteran Business Ownership -A survey investigating the factors affecting military-affiliated entrepreneurs.
11. PenFed Foundation’s Veteran Entrepreneur Investment Program: Funding and Support for Veteran Businesses – Offers financial investment and support to veteran entrepreneurs.
12. Millennial Veteran Entrepreneurship Study: Research on Next-Generation Veteran Entrepreneurs – A study examining the entrepreneurial activities of millennial veterans.
13. National Survey of Military-Affiliated Entrepreneurs (NSMAE) 2021 conducted by IVMF: Comprehensive Entrepreneurial Study – Detailed survey findings on military-affiliated entrepreneurs.