Veterans to Entrepreneurs: How to Find Post-Service Success

Veterans to Entrepreneurs: How to Find Post-Service Success

Entrepreneurship has a long-standing popularity with military veterans: Nearly 50 percent of World War II veterans went on to own their own businesses, and 40 percent of Korean War veterans followed suit. While veterans today are still drawn to entrepreneurship, they’re starting businesses as a startlingly low rate: Only 4.5 percent of post-9/11 veterans own their own business. While the drop certainly isn’t unique to veterans — entrepreneurship in the US has plummeted since the 2008 financial crisis — vets in particular have been hit hard by the drop in small business creation. While military veterans make up 7.3 percent of the US population, as of 2014, they were creating only 5.6 percent of all new businesses.

Why the decline in veteran entrepreneurship? With the growing awareness of veterans’ health issues faced by combat veterans, such as PTSD and addiction, some industries may be hesitant to invest in people coming out of military service. Even though veterans are industrious, creative, and motivated employees, mental health stigma can negatively affect their employment prospects.

Moreover, while older veterans could gain skills in an industry and go on to open their own brick-and-mortar business, today’s veterans face stiff competition from mega-corporations that can more readily access financing and cover overhead and regulatory expenses. But that doesn’t mean that entrepreneurship isn’t still a wonderful option for modern veterans — it just means that starting a small business requires more creativity and innovation than it did in the past.

Military veterans do have significant benefits on their side:

●       70 percent of US citizens say they’re more likely to patronize a veteran-owned business than a business not owned by a veteran, a fact that veterans seeking to attract clientele to their emerging business can use to their advantage.

●       Veterans receive preferential treatment for government contracts if they register as a Service-Disabled Veteran-Owned Small Business or a Veteran-Owned Small Business through the Vets First Verification Program.

●       Vets can access expedited small business loans with reduced guaranty fees through the Small Business Administration’s Express Loan Program.

●       There are countless entrepreneurial training and career-specific training programs designed just for veterans.

●       Many franchises discount franchise fees for US military veterans.

●       Veterans have the discipline and leadership skills necessary to thrive in the competitive small business market.

So how can veterans start a small business that can weather the challenging entrepreneurial economy?

●       Make the most of available resources. Enroll in training programs designed for veterans like the Entrepreneurship Bootcamp for Veterans with Disabilities, connect with other veteran business owners in your community, and get involved in online networks like the National Marine Corps Business Network on LinkedIn.

●       Think carefully about what sort of business you’d like to start. Consulting work is a good route if you’re looking to obtain government contracts. You can also take advantage of the ever-expanding digital economy and start a business selling goods or services online, or find an opportunity to get outside, work with your hands, and boost your mental health. Research your market and ensure there’s a need for the good or service you hope to provide.

●       Take advantage of the GI Bill. You can apply your GI Bill benefits to college courses or on-the-job training to prepare yourself for a new career.

●       Don’t forget free online learning opportunities. Ongoing professional development is crucial for a long-lived business, but formal education can be costly. Make use of online courses through sites like Coursera, Khan Academy, and edX.

●       Develop a marketing strategy. No matter how good your business idea, you won’t succeed unless you can draw in customers. Engage potential clients online and in person, and showcase to your veteran status as a reason why customers should choose you over a competitor.

There’s no denying that finding a new career after the military can be difficult. Veterans face obstacles in the form of mental health stigma, lack of university-based higher education, and disabilities that affect daily living. But that doesn’t mean that veterans can’t be successful entrepreneurs — in fact, their ability to conquer obstacles and move forward at all costs makes veterans especially well-suited to a career in self-employment.

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