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Washington, D.C.— Today, House Small Business Committee Chairwoman Rep. Nydia M. Velázquez (D-NY) gathered a panel focused on recognizing the substantial role of veteran entrepreneurs in the economy and the challenges that they face when starting a small business. During the hearing, former service members highlighted the struggles that veterans face and weighed in on current government programs and legislative efforts meant to foster veteran entrepreneurship.

“More needs to be done to help our nation’s veterans launch, grow, and succeed in entrepreneurship,” said Chairwoman Velázquez. “For that reason, I am committed to improving the Small Business Administration’s programs to ensure they are effectively serving our nation’s heroes.  I am pleased to support a number of these measures – from lending to contracting to training and counseling – that will make it easier, not harder, for our veterans to get their business up and running.”

Veteran-owned businesses serve as a critical component of the small business sector and the entire economy. America’s 2.5 million veteran-owned small businesses employ over 5 million Americans and generate more than $1 trillion in revenue annually. However, rates of veteran entrepreneurship have been on a steady decline over the past few decades. The share of new veteran entrepreneurs has declined from 12 percent in 1996 to 4 percent in 2016. Furthermore, the rate of decline has been more significant for veterans than non-veterans. With 200,000 service members exiting the military annually, making sure that these veterans have adequate resources to transition to civilian life has become a prominent issue.  

Veteran entrepreneurs face many of the same obstacles that affect small business owners broadly. These issues include accessing capital, limited or no social networks, and difficulty developing mentorships. Accessing capital has proved to be a significant obstacle, as veteran-owned businesses have lower approval rates for loans, lines of credit, and cash advances compared to non-veteran business owners.

Considering these challenges, the Small Business Administration offers several programs aimed at fostering entrepreneurship among veterans.  These programs include Veterans Business Outreach Centers and the Boots to Business Program. The Boots to Business program provides in-person training on military installations focused on teaching the critical steps for evaluating business concepts and providing the foundational knowledge to develop a business plan. During the hearing, members examined the effectiveness of current programs and ways that veteran entrepreneurs can be better supported.

“Boots to Business is unlike any of SBAs other entrepreneurial development (ED) programs,” said Davy Leghorn, Assistant Director of National Veterans Employment and Education Division at The American Legion.  “Boots to Business is administered to servicemembers leaving the service and transitioning back to civilian life. Many of them have no relevant work experience or connections in the industries they desire to be a part of.”

“The reason Boots to Business is an effective part of military transition is because the curriculum focuses on the important factors related to starting a business,” said Scott Davidson, Managing Principal & CEO of the GCO Consulting Group in Mclean, VA. “It educates servicemembers on the broad spectrum of entrepreneurial business concepts and introduces them to SBA resources that are available, including start-up capital, technical assistance, contracting opportunities, and more. Most importantly, it provides a starting baseline of expectations for individuals who have been in a structured environment for an extended period of time.”

“I see entrepreneurship as the secret weapon for military spouses: it’s a way to create something that can support your family, give you the flexibility you need during deployments, give you the freedom to do something that you love,” said Torrance Hart, Owner of Teak & Twine in Springfield, Virginia. “It moves with you when needed and even allows you to give back to other military spouses. The Boots to Business program is vital is giving military spouses the resources, information and foundation they need to unleash the amazing possibilities of entrepreneurship.”

“With 200,000 servicemembers transitioning from the military to civilian life each year, the need for additional counseling resources, access to capital, and contracting opportunities will increase,” said Chairwoman Velázquez. “The testimony we heard today provides invaluable insight into the challenges and benefits of being a veteran entrepreneur in this country and will help guide the committee as it moves forward with legislation to prepare veterans for entrepreneurship.”

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