Veterans face challenges starting small businesses but there are resources to help

abcnews.go.com:

Many veterans who’ve started small businesses tell a similar story: Their military service prepared them mentally for the task, but they were at a disadvantage when it came to the financial part

NEW YORK — Many veterans who’ve started small businesses tell a similar story: Their military service prepared them mentally for the task, but they were at a disadvantage when it came to the financial part.

“Vetrepreneurs” – veterans that start small businesses or startups — own nearly 2 million small businesses that employ 5.5 million people in the U.S., according to the Small Business Administration. They take in about $1.3 trillion in revenue annually. Their numbers have shrunk, however, as the veteran population has aged. In a 2023 report, the SBA found veteran ownership declined from 11% of businesses in 2014 to 8.1% in 2020.

Veterans enter the business world prepared with skills they gain in the field like leadership and problem-solving. But they haven’t had a chance to build up credit or savings that civilians have had more time to do. That can cause problems because banks use that information to approve loans. Not to mention the mental toll it takes to transition from the military life to civilian life.

According to data from business coaching nonprofit SCORE, about a third of veteran businesses have limited access to capital or lack of financing. That compares to a quarter of non-veteran-owned firms.

SCORE CEO Bridget Weston says the good news is that veterans have plenty of places to turn to for help. Those include nonprofit organizations aimed at getting them on their feet and building up financial literacy, veteran-only loans and grants, and contracts earmarked for veteran owned and disabled veteran owned small