NEW YORK — Many veterans in the United States who have started small businesses tell a similar story: Their military service prepared them mentally for the task, but they found themselves at a disadvantage when it came to the financial side.
So-called “vetrepreneurs”—veterans who start small businesses or startups—own nearly 2 million small businesses that employ 5.5 million people in the United States, according to the U.S. Small Business Administration (Small Business Administration). SBA for its acronym in English). These companies generate approximately $1.3 trillion in annual revenue. However, their numbers have declined as the veteran population has aged. In a 2023 report, the SBA found that veteran business ownership decreased from 11% in 2014 to 8.1% in 2020.
Veterans enter the business world prepared with skills they acquire in the field, such as leadership and problem solving. But they haven’t had the opportunity 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 exhaustion that comes with the transition from military life to civilian life.
According to data from the nonprofit business advisory organization SCORE, about a third of veteran-owned businesses have limited access to capital or lack financing. This compares to a quarter of non-veteran-owned firms.
Bridget Weston, CEO of SCORE, said the good news is that veterans have many places to turn to for help. These include nonprofits aimed at helping them bootstrap and develop their financial education, loans and grants just for veterans, and contracts reserved for small businesses owned by veterans and disabled veterans.
The place where many start is the SBA, which offers a program to certify as a veteran-owned or disabled veteran-owned small business, which can make it easier to obtain certain federal loans and contracts.
That’s the path Jackson Dalton decided to take when he founded Black Box Safety, a personal protective equipment manufacturer, in 2017. Dalton enlisted in the United States Marines in 2000 and was selected for the prestigious Marine Corps Operations Specials. But a serious leg fracture, suffered during training, forced him to retire for medical reasons after two years of active service.
Although the transition back to civilian life was difficult, Dalton earned a master’s degree in public health and worked for 10 years in the health and safety industry. When he ventured out on his own, he decided to focus on federal contracts and became SBA certified. He thought prisons would be a good place to start, since 3% of his contracts go to disabled veteran businesses. His first contract was selling gloves to a prison in Minnesota. Today, it serves major clients such as the United States Department of Veterans Affairs (VA) and the state of California.
Dalton attributes his success to his military training.
“The skills and attributes I acquired in the military were resilience, tenacity and the ability to adapt, improvise and overcome when resistance, obstacles and barriers are encountered,” he said.
Veteran-focused nonprofits can be another key place to look for help.
Adam Isch, a Marine Corps 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 hygiene products. The business donates a portion of its proceeds to charities that support Texas children in foster care and awaiting adoption. Similar organizations include Bunker Labs, Tactical Launch, and others across the country.
“Anyone who wants to start a business, especially a veteran, should find a group like Warrior Rising, there are all kinds of different groups like that that offer mentoring,” he explained. “There are people who are doing what you do. “They do what I do, and they love it and they want to talk about it.”
For some, a loan aimed at veterans can be the key to a business. Elizabeth Gore, co-founder and president of Hello Alice, a financial technology company that works with small businesses to obtain financing, including 117,000 military small business owners. “They really have to fight harder than other sectors and demographic groups to access capital,” he said.
John Griveas in Buffalo, New York, served two years as a SEAL Task Force sailor in the mid-1990s and spent his remaining four years in New York in the active reserves, ending his service in 2002. After that, he “jumped ” from job to job and spent 10 years in the local collections industry.
But in 2014 he met his current partner, Jackie, and decided that his hobby of making natural dog treats could be a real business. They formed Fetch! Dog Treats as a limited liability company in 2015 and today they sell their treats in about 300 independent stores, kiosks, banks and even at the Venetian Hotel on the famous and busy Las Vegas Strip.
For him and other veterans he has spoken to, one of the biggest challenges they face is obtaining funding. She 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 a crucial moment, when his landlord decided to remodel his premises and gave him only a few months to find a new location.
“It was something that was literally going to sink us,” he said. “And when that grant came in, it was literally a lifesaver for us.”
His advice to other veterans is to take advantage of veteran resources.
“There are tons of resources available,” he said. “Whatever gets you through the day, because running a business involves a lot of things.”
