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Washington, D.C.— Today, the House Small Business Committee Subcommittee on Contracting and Infrastructure held a joint hearing with the House Veterans Affairs Subcommittee on Economic Opportunity examining the current state of veteran entrepreneurship in the United States. During the hearing, Ranking Member Hillary Scholten (D-MI) highlighted the importance of veteran entrepreneurs to the overall economy and how Congress can bolster access to capital and entrepreneurial development resources available to former servicemembers.

“We all know that small businesses are the backbone of America’s economy, and veteran-owned small businesses make up a critical part of that foundation,” said Ranking Member Scholten. “The work these entrepreneurs do - all after serving our nation in the armed forces - is nothing short of remarkable. Moreover, the impact of these small businesses in our communities highlight the need for our government to support them.”

Veterans own approximately 1.7 million businesses, nearly all of which are small businesses. Research shows that veterans are especially qualified to start and run their own businesses, as they, throughout their service, learned how to make good decisions in chaotic environments and are natural leaders, confident, and driven.

Unfortunately, former service members frequently encounter significant obstacles in accessing capital, utilizing available resources, and finding suitable mentors. Additionally, some data indicate that younger veterans are not pursuing entrepreneurship at the same rates as previous cohorts.

During the hearing, members examined the federal programs that serve veteran entrepreneurs and discussed the ways that Congress can increase support for veteran entrepreneurs. Veteran business owners also shared their challenges and discussed policies that could help their businesses prosper.

“As with many entrepreneurs, access to capital remains a top issue for veteran-owned small businesses. Studies have shown that over half of veteran-owned businesses don’t receive the amount of financing that they request,” continued Ranking Member Scholten. “These realities, combined with the downward trend of young veterans pursuing entrepreneurship, highlight an area where more support from Congress may be needed.”

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