NEW YORK (AP) – Many veterans who have started small businesses tell a similar story: Their military service prepared them mentally for the job, but they were at a disadvantage when it came to the financial part.
“Veterans” — veterans who start small businesses or startups — own about 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 annual revenue. However, their numbers have dwindled as the veteran population has aged. In a 2023 report, the SBA found that veteran ownership dropped from 11% of businesses in 2014 to 8.1% in 2020.
Veterans enter the business world prepared with the skills they gain in the field such as 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. This can cause problems because banks use that information to approve loans. Not to mention the mental toll it takes to transition from military to civilian life.
According to data from the business training nonprofit SCORE, about one-third of veteran businesses have limited access to capital or a lack of financing. This compares with a quarter of non-veteran firms.
SCORE CEO Bridget Weston says the good news is veterans have many places they can turn for help. They include nonprofits that aim to get them back on their feet and create financial literacy, loans and grants just for veterans, and contracts aimed at veteran-owned and disabled small businesses.
A great place to start is the Small Business Administration, which offers a program to certify as a veteran-owned or disabled small business, which can make it easier to get some loans and contracts. federal.
That’s the path Jackson Dalton decided to take when he started Black Box Safety, a manufacturer of personal protective equipment, in 2017. Dalton enlisted in the US Marines in 2000 and was selected for the prestigious Marine Corps special operations. But a badly broken leg sustained during training eventually forced him to retire from medicine after two years on active duty.
Although the transition to civilian life was difficult, Dalton went on to earn a master’s degree in public health and spent 10 years working in the health and safety industry. When he went out on his own, he decided to focus on federal contracts and became 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 at a Minnesota prison. Today, it serves major clients such as the Department of Veterans Affairs and the State of California.
Dalton credits his military training with his success.
“The skills and attributes that I got in the military were resilience and courage and the ability to adapt, improvise, overcome when you know, when you encounter resistance or obstacles and barriers,” he said.
Veteran-focused nonprofits can be another key place to look for help.
Adam Isch, a Marine Corp veteran. who served two tours in Iraq, worked with the nonprofit Warrior Rising in Salt Lake City to find a mentor to help him start his business, Isch Body Works in Fort Worth, Texas, which sells men’s grooming products. The business donates a portion of its proceeds to charities that support Texas children in foster care and awaiting adoption. Similar nonprofits include Bunker Labs, Tactical Launch and others around the country.
“Anybody who wants to start a business, especially a veteran, go find a group like a Rising Warrior, there are all kinds of different groups like that that get mentorship,” he said. “There are people doing what you do. They’re doing what I do, they love it and they want to talk about it.”
For some, a veteran’s loan can be what makes or breaks a business. Elizabeth Gore, co-founder and President of Hello Alice, a financial technology firm that works with small businesses to obtain funding, including 117,000 military small business owners. “They really have to struggle more than other groups and demographics for access to capital,” she said.
John Griveas in Buffalo, NY spent two years as a Navy SEAL in the mid-1990s and his remaining four years in New York in the active reserves, ending his tenure in 2002. After that he “turned” in various jobs and spent 10 years in the local collectibles industry.
But in 2014 he met his current partner, Jackie, and decided her hobby of making natural dog treats could be a real business. They formed Fetch! Dog Treats as an LLC in 2015 and today they sell their treats in about 300 independently owned brick and mortar stores, newsstands, banks and even the Venetian Hotel in Las Vegas.
For himself and other veterans he has spoken with, one of the biggest challenges they face is getting funding. He found a $10,000 grant through the FedEx Entrepreneur Fund, which partners with Hello Alice to provide grants to small businesses owned by military veterans. It came at an important time, when his owner decided to redevelop his space and gave him just a few months to find a new location.
“It was something that was literally going to end us,” he said. “And when that grant came, it was literally a lifesaver for us.”
He advised other veterans to take advantage of veterans’ resources.
“There are a lot of resources out there,” he said. “Whatever it may be that you know, it just helps you get through your day-to-day life because there’s a lot involved in running a business.”