Veteran-owned businesses are a crucial component of the U.S. economy, generating approximately $1 trillion in annual sales and providing employment for 6 million Americans. These businesses represent 9.1% of all U.S. enterprises and span diverse sectors such as construction, healthcare, professional services, and retail trade. The unique skills and experiences that veteran entrepreneurs bring to the table significantly enrich the small business sector, fostering innovation, resilience, and a strong work ethic.

According to the U.S. Census Bureau's Survey of Business Owners, there were 2.52 million businesses majority-owned by veterans in 2012.

Veteran-owned firms represented 9.1 percent of all U.S. firms, and the top 10 industries with the highest percentage of veteran-owned businesses included transportation and warehousing, construction, and professional, scientific, and technical services.

These veteran-owned businesses employed over 5.03 million people, making a significant contribution to the country's economy.

Access to Capital

One of the biggest hurdles veteran entrepreneurs face is access to financial capital and funding sources. This can stem from issues like lack of established credit history, fewer personal assets to use as collateral for loans, and investor bias against veteran-owned startups.

Business Experience Gap

Many veterans lack formal business training or professional experience outside of the military before starting a company. Specific gaps can include limited entrepreneurship education and mentorship, underdeveloped professional networks and industry connections, and the need to translate military skills to the business environment.

Navigating Regulations and Red Tape

Veteran business owners often struggle with complex regulations, licensing requirements, taxes, legal fees, and government contracting processes at the federal, state, and local levels. This regulatory burden can slow growth.

Social and Human Capital

Building social capital through networking, finding quality employees and mentors, and connecting with other entrepreneurs is another common challenge cited by veteran business owners.

Mental Health Considerations

Around one-third of veterans report mental health conditions like PTSD, anxiety or depression, which can impact their ability to successfully run a business if untreated.

Opportunities for Veteran Entrepreneurs

Entrepreneurial Traits from Military Experience

Veterans often possess traits linked to successful entrepreneurship, including confidence and high self-efficacy, good decision-making in chaotic environments, and independence and achievement motivation.

Diverse Business Ownership

Veteran entrepreneurs are diverse in age, race/ethnicity, disability status and professional backgrounds, allowing them to start businesses across many different industries.

Support Resources and Programs

There are a growing number of resources, funding programs, business accelerators and support networks tailored specifically for veteran entrepreneurs, such as veteran entrepreneur training programs and competitions, specialized business mentors and coaching, veteran loans, investment funds and grant programs, and veteran business owner associations and networking groups.

Successful Veteran Business Role Models

Many high-profile companies were started by veteran entrepreneurs who drew on their military experience, including FedEx, Nike, GoDaddy and others. Their success stories can inspire the next generation.

While the path is challenging, the unique skills and experiences of veterans, combined with targeted resources, create opportunities for veteran entrepreneurs to build sustainable, thriving businesses. Continued efforts to lower barriers and provide guidance are key to unleashing this economic potential.