Veterans Day Spotlight: Empowering Veteran Entrepreneurs for a Brighter Future
Every Veterans Day, I take a moment to honour those who have served our country. Today, I’m not just reflecting on their military service, but also on their powerful contributions as small-business owners. These veterans bring the same dedication, leadership, and resilience to the business world as they did in uniform.
Veteran entrepreneurs, including military spouses, reservists, and those with disabilities, are helping to shape the future of business in the United States. However, despite their many strengths, these entrepreneurs face unique challenges that can hinder their ability to thrive. In this post, we’ll dive into the current landscape of veteran-owned businesses, the struggles they encounter, and the resources available to empower them for a brighter future.
The Rise of Veteran Entrepreneurs
As the military-to-civilian transition continues, more veterans are embracing the path of entrepreneurship. Many are stepping into the business world with strong leadership skills, a unique perspective on problem-solving, and an unmatched work ethic. According to recent data from the U.S. Small Business Administration (SBA), veterans own approximately 1.9 million businesses in the U.S., employing nearly 5.5 million people.
However, for many veterans, the journey to entrepreneurship is not without its hurdles. From securing funding to scaling their businesses, veteran entrepreneurs face numerous obstacles that require tailored solutions and a supportive ecosystem.
Challenges Faced by Veteran Entrepreneurs
Veteran entrepreneurs may have the skills to lead, but they often face difficulties that hinder their ability to succeed. Below, I’ve highlighted some of the most significant challenges that veterans in business currently face:
1. Raising Capital and Finding Loans
One of the biggest barriers to starting or growing a business is capital. While veterans are known for their resourcefulness, accessing funding can be particularly difficult. According to the SBA Office of Advocacy, only 9% of veteran-owned businesses rely on bank loans to fund their startups, compared to 16% of non-veteran-owned businesses. Traditional banks often view veteran entrepreneurs as risky clients, particularly because of their non-traditional business experiences.
Funding Options for Veterans:
- SBA Veteran-Owned Business Loans (more details on SBA veteran loan programs)
- Veterans Business Fund – Provides grants to veteran-owned businesses.
- Crowdfunding platforms and angel investors can also be viable alternatives to traditional loans.
2. Growing the Business
Even after securing funding, scaling a business can be a significant challenge. Veterans may struggle with building a customer base, expanding their network, and navigating new business relationships. Marketing and sales, areas that often require specific civilian business knowledge, can be difficult for veterans without formal training or experience in those fields.
Tips for Growing a Veteran-Owned Business:
- Join veteran-focused business groups, like Bunker Labs or Vets4Vets, to connect with potential customers and partners.
- Leverage your military network to gain access to resources and mentorship.
- Take advantage of online business courses and workshops focused on small business growth.
3. Navigating Day-to-Day Operations
Many veterans struggle with the day-to-day operations of a business. Adapting to civilian life, managing a team, and understanding compliance and regulations can all present obstacles. For veterans with service-related disabilities, the complexity increases as they may face additional challenges, including physical limitations and societal bias. Despite the availability of numerous veteran-specific resources, a significant number of veteran entrepreneurs report struggling with these obstacles.
Key Resources for Day-to-Day Challenges:
- SCORE (Service Corps of Retired Executives) offers free mentorship and advice to veterans, particularly for operational hurdles.
- Veterans Entrepreneurship Program – An initiative by Syracuse University’s D’Aniello Institute for Veterans and Military Families provides educational resources to help veterans navigate the complexities of running a business.
Untapped Segments in the Veteran Entrepreneurial Space
While all veterans face unique challenges, certain groups within the veteran community are particularly underrepresented in the small business world. Let’s take a closer look at some of these untapped segments and how they are overcoming adversity.
Military Spouse Entrepreneurs
Military spouses often experience unique challenges due to frequent relocations, career disruptions, and a lack of access to stable employment. Despite these difficulties, military spouse entrepreneurs are thriving. Organisations like the Association of Military Spouse Entrepreneurs have built strong communities that offer support, mentorship, and resources specifically for military spouses looking to start and grow their businesses.
Reservist Entrepreneurs
Reservists face the unique challenge of balancing military service with entrepreneurship. Many of them are turning to small business ownership as a viable way to generate income while maintaining their military commitment. Bunker Labs, a veteran-focused accelerator programme, has been a critical resource for reservists looking to build businesses while continuing to serve.
Veterans with Disabilities
Veterans with disabilities face additional barriers to starting and growing a business. According to a survey by SCORE, 42% of veteran entrepreneurs have a service-related disability, and many of these entrepreneurs face prejudice and bias. Fortunately, there are resources like the Veterans Entrepreneurship Initiative, which provides tools and support specifically for veterans with disabilities.
Building a Stronger Future for Veteran Entrepreneurs
Despite the challenges, veteran entrepreneurs continue to build successful businesses and contribute significantly to the economy. As Phyllis Newhouse, a U.S. veteran turned entrepreneur and founder of cybersecurity firm Xtreme Solutions, said, “We must shoulder up for our U.S. veterans. They are the future of entrepreneurship.”
The good news is that more organisations are recognising the value of veteran entrepreneurs and are working to provide them with the tools, capital, and support needed to succeed. By focusing on the following, we can help veterans overcome the challenges they face:
- Increased access to capital through government programmes and private funding.
- Veteran-specific mentorship and educational resources that address the unique needs of veteran entrepreneurs.
- Strong networks and community-driven support systems for veterans in business.
Conclusion: Supporting Veteran Entrepreneurs for a Better Tomorrow
As we celebrate Veterans Day, let’s not only honour their service in the military but also their entrepreneurial spirit. By providing targeted support and recognising the unique challenges veterans face in business, we can help build a future where veteran entrepreneurs thrive. Veterans are good for business, and with the right resources and encouragement, they can continue to contribute to the economy and make lasting impacts on their communities.
