Many members of the military begin new careers in business after their service. After all, the leadership and critical thinking skills that the military impart are easily transferable to entrepreneurship. In fact, military veterans own over 1,955,000 businesses in the United States, making them key contributors to our economy.
While veterans bring unique strengths and skill sets to business ownership, they may also face unique barriers to starting or expanding their enterprises, especially if they’ve only recently returned from active duty. Fortunately, a wide variety of resources are available to help veterans meet their business needs, from mentorships to veteran small business loans.
What Counts as a Veteran-Owned Business?
Most veteran business owners run small businesses. So, to qualify as a veteran-owned business, the business needs to meet Small Business Administration (SBA) requirements. On top of qualifying as a small business, the business must be at least 51% veteran owned.
If a business qualifies, the SBA will request their military records to verify eligibility. Current military members cannot qualify as owners of a veteran-owned business.
Note that veteran business owners do not need to be verified as a veteran-owned business to qualify for financing; however, becoming an SBA-certified veteran-owned business can help business owners qualify for some types of financing and additional resources.
Resources for Veteran-Owned Businesses
Support through Veterans Business Outreach Centers
A number of organizations work together under the Small Business Association to provide Veterans Business Outreach Centers (VBOC). VBOCs help in all phases of small business development, but they may be particularly useful in the earliest stages. Their Boots to Business courses are designed to help military members and their spouses transition into business ownership and other entrepreneurial roles.
VBOCs also help veterans cultivate their concepts, develop and hone their plans, and grow their businesses. Specific veteran populations, including women and disabled veterans, could also receive more individualized support and career counseling.
Mentorship through SCORE
SCORE offers free mentorship to aspiring and existing business owners throughout the United States. Mentors are experts across many industries from a wide range of backgrounds. Through SCORE’s resources for veterans, you could connect to a mentor within your industry who has also served in the military. Strengths of this program include the personalized mentorship approach and access to a wealth of online resources, workshops, and webinars. Mentors leverage their personal experiences moving from the military into the business world to provide practical insights and relevant advice.
Certification through the Small Business Association
Some government offices prioritize veteran-owned businesses when it comes to their federal procurement contracts. To compete for those contracts, an organization must become an officially certified veteran-owned small business. The SBA’s program for this certification is called Veteran Small Business Certification or VetCert. To qualify, a company must be a registered small business with at least 51% veteran ownership. Individuals who own businesses that meet those requirements can register and apply for VetCert online. Businesses owned by service-disabled veterans can apply for an additional certification through VetCert.
Guidance through the Department of Veteran Affairs
The Department of Veterans Affairs (VA) offers a central portal for small businesses at any developmental stage to access resources: the Veteran Entrepreneur Portal (VEP). Through the VEP, you could find guidance for starting a business, information on financing tools like business loans, support for expanding a small business, and available federal contracts, in addition to other resources. The VA also offers events for veteran business networking so you can build your supportive community.
The above resources provide a robust support system designed to leverage veteran entrepreneurs’ skills and experiences and to help them overcome the barriers they might face in the business world. No matter where you are in your business journey, you can tap into this network to overcome obstacles and build a successful enterprise.
Where to Find Financing for Veterans
Veteran business owners looking to secure financing can find it through local credit unions, institutions like banks, and online lenders. Each lender option comes with pros and cons, so compare your options before applying for financing. If in doubt, look for a lender with experience working with veterans and within your business industry.