Many veterans who start small businesses tell a similar story: Their military service prepared them mentally for this mission, but they were at a disadvantage when it came to the financial part.
“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 Small Business Administration. They generate revenues of about $1.3 trillion annually. However, their numbers have shrunk as the ancient population has aged. In a 2023 report, the Small Business Administration found that veteran ownership declined from 11% of businesses in 2014 to 8.1% in 2020.
Veterans enter the business world equipped with the skills they gain in the field such as leadership and problem solving. But they did not have the opportunity to build credit or savings that civilians had more time to do. This can cause problems because banks use that information to approve loans. Not to mention the psychological burden required by the transition from military life to civilian life.
According to data from the business coaching nonprofit SCORE, about a third of veteran businesses have limited access to capital or lack funding. This compares to a quarter of non-veteran-owned businesses.
The good news is that veterans have plenty of places to turn for help, says Bridget Weston, CEO of SCORE. These include nonprofits aimed at getting them back on their feet and building financial literacy, loans and grants designated just for veterans, and contracts designated for small businesses owned by veterans and the disabled.
The place many start is with the Small Business Administration, which offers a program to certify as a veteran- or disabled-owned small business, making 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 manufacturer of personal protective equipment, in 2017. Dalton joined the US Marine Corps in 2000 and was selected for the prestigious Special Operations enlistment in the Marine Corps. But a severe leg fracture, sustained during training, eventually forced him to medically retire after two years of active service.
Although returning to civilian life was difficult, Dalton earned a master's degree in public health and spent 10 years working in the health and safety field. When he ventured out on his own, he decided to focus on federal contracts and obtained certification from the SBA. He thought prisons would be a good place to start since 3% of their contracts go to disabled veteran companies. His first contract was selling gloves to a prison in Minnesota. Today, it serves major clients such as the Department of Veterans Affairs and the State of California.
Dalton credits his military training for his success.
He said: “The skills and qualities that I acquired in the army were flexibility, determination, and the ability to adapt, improvise, and overcome when faced with resistance or obstacles and barriers.”
Veteran-focused nonprofits can be another prime place to look for help.
Adam Isch, a Marine veteran who served two tours in Iraq, worked with the Salt Lake City nonprofit Warrior Rising to find a mentor to help him start his business, Isch Body Works in Fort Worth, Texas, which sells men's hygiene products. . . The company donates a portion of its proceeds to charities that support Texas children in foster care and waiting to be adopted. Similar nonprofits include Bunker Labs, Tactical Launch and others across the country.
“Anyone who wants to start a business, especially a veteran, goes and finds a group like Warrior Rising, there are all kinds of different groups like that that get mentored,” he said. “There are people who do what you do. They do what I do, and they love it and want to talk about it.”
For some, a veterans loan can be what makes or breaks a business. Elizabeth Gore, co-founder and president of Hello Alice, a fintech company that works with small businesses to get financing, including 117,000 military small business owners. “They have to struggle more than other groups and demographics to access capital,” she said.
A Navy veteran has discovered a very touching way to give old Christmas trees a second life and renewed meaning. Florida carpenter Oscar Morris, founder of Free Canes For Veterans, turns these retired trees into handcrafted wooden canes and sends them to veterans at no cost.
John Griffias spent two years in Buffalo, New York as a Navy officer in the mid-1990s, and spent his remaining four years in New York in the active reserves, finishing his tour of duty in 2002. He then “rotated” through various jobs and spent 10 years in the local collections industry.
But in 2014 he met his current partner, Jackie, and decided that her hobby of making natural dog foods could become a real business. They formed a fetch! Dog Treats was founded as an LLC in 2015 and today sells its products in about 300 independently owned brick-and-mortar stores, news stores, banks and even the Venetian Hotel on the Las Vegas Strip.
For him and other veterans he spoke to, one of the biggest challenges they face is getting money. 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 a pivotal time, when the property owner decided to redevelop his space and gave him just a few months to find a new location.
“It was something that would have literally killed us,” he said. “When this grant came along, it was 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 you know, it just helps you get through everyday life, because there's a lot that goes into running a business.”