Friday, November 22, 2024

Veterans face challenges starting small businesses but there are plenty of resources to help

Must read

NEW YORK (AP) — Many veterans who’ve started small businesses tell a similar story: Their military service prepared them mentally for the task, but they were at a disadvantage when it came to the financial part.

“Vetrepreneurs” – veterans that start small businesses or startups — own nearly 2 million small businesses that employ 5.5 million people in the U.S., according to the Small Business Administration. They take in about $1.3 trillion in revenue annually. Their numbers have shrunk, however, as the veteran population has aged. In a 2023 report, the SBA found veteran ownership declined from 11% of businesses in 2014 to 8.1% in 2020.

Veterans enter the business world prepared with skills they gain in the field like leadership and problem-solving. But they haven’t had a chance to build up credit or savings that civilians have had more time to do. That can cause problems because banks use that information to approve loans. Not to mention the mental toll it takes to transition from the military life to civilian life.

According to data from business coaching nonprofit SCORE, about a third of veteran businesses have limited access to capital or lack of financing. That compares to a quarter of non-veteran-owned firms.

SCORE CEO Bridget Weston says the good news is that veterans have plenty of places to turn to for help. Those include nonprofit organizations aimed at getting them on their feet and building up financial literacy, veteran-only loans and grants, and contracts earmarked for veteran owned and disabled veteran owned small businesses.

The place that many start is the Small Business Administration, which offers a program to get certified as a veteran-owned or disabled veteran-owned small business, which can make it easier to get certain loans and federal contracts.

That’s the route Jackson Dalton decided to take when he started Black Box Safety, a maker of personal protective equipment, in 2017. Dalton enlisted in the U.S. Marines in 2000 and was selected for the prestigious Marine Corps Special Operations. But a badly broken leg, suffered during training, eventually forced him medically retire after two years of active duty.

Although the transition back to civilian life was difficult, Dalton went on to get a master’s degree in public health, and spent 10 years working in the health and safety industry. When he ventured out on his own, he decided to focus on federal contracts and got certified by the SBA. He thought prisons would be a good place to start since 3% of their contracts go to disabled veteran businesses. His first contract was selling gloves to a prison in Minnesota. Today, he serves major clients like the Department of Veterans Affairs and the State of California.

Latest article