Many veterans who have started small businesses or startups, commonly known as “Vetrepreneurs,” face challenges in the financial aspect of their ventures despite being prepared mentally by their military service. The Small Business Administration reports that these veterans own nearly 2 million small businesses employing 5.5 million people in the U.S., with an annual revenue of $1.3 trillion. However, the percentage of veteran-owned businesses has declined from 11% in 2014 to 8.1% in 2020 as the veteran population has aged. Veterans bring valuable skills like leadership and problem-solving from their military experience but often lack the credit and savings necessary to secure loans from banks.
Data from the nonprofit organization SCORE shows that about a third of veteran-owned businesses struggle with limited access to capital or lack of financing, compared to a quarter of non-veteran-owned firms. SCORE CEO, Bridget Weston, highlights the various resources available to veterans, including nonprofit organizations focused on financial literacy and veteran-specific loans and grants. Additionally, there are contracts earmarked for veteran-owned businesses, providing opportunities for growth and sustainability in the business world. Veterans are encouraged to seek out these resources to overcome financial obstacles.
For many veterans, the Small Business Administration is a starting point for assistance. The SBA offers a program to certify businesses as veteran-owned or disabled veteran-owned, making it easier to access certain loans and federal contracts. Jackson Dalton, a former Marine Corps Special Operations member, utilized this program when he founded Black Box Safety, a company specializing in personal protective equipment. By focusing on federal contracts, Dalton was able to secure major clients like the Department of Veterans Affairs and the State of California, showcasing the impact of veteran-owned businesses in various industries.
Nonprofit organizations like Warrior Rising and Bunker Labs play a crucial role in supporting veteran entrepreneurs. Marine Corps veteran, Adam Isch, found a mentor through Warrior Rising, which helped him establish Isch Body Works, a men’s hygiene products business in Texas. Isch’s business also contributes to charities supporting children in foster care and adoption, reflecting the values of many veteran entrepreneurs. By accessing mentorship programs and resources offered by these organizations, veterans can navigate the challenges of starting and growing their businesses successfully.
Access to capital remains a significant hurdle for many veteran-owned businesses, as highlighted by Elizabeth Gore, the President of Hello Alice, a financial technology firm. For entrepreneurs like John Griveas, a former Navy Seal, securing funding is essential for sustaining and expanding their businesses. Griveas and his partner founded Fetch! Dog Treats in 2015, which has grown to supply treats to over 300 stores nationwide. Through grants and partnerships with organizations like Hello Alice and FedEx Entrepreneur Fund, veterans like Griveas can overcome financial obstacles and achieve business success.
While the transition from military service to entrepreneurship presents its challenges, the resilience and adaptability developed in the military can be valuable assets for veteran entrepreneurs. By tapping into the resources and support networks available specifically for veterans, entrepreneurs can navigate the financial complexities of starting and growing a business. With the right tools and assistance, veteran-owned businesses have the potential to make a significant impact in the business landscape and contribute to the economic growth of their communities.
