How Veteran-Owned Business Contribute to the Economy and Society
Veteran-owned businesses play a crucial role in our economy and society. These enterprises, founded and led by military veterans, bring unique skills, dedication, and a strong work ethic to the business world. In this article, we will explore the benefits of supporting veteran-owned business, the help available to them, and how they contribute to their communities. Let's dive in!
Benefits of Being a Veteran-Owned Business
Benefits of Being a Veteran Owned Business
Being a veteran owned business can offer many advantages, such as:
Small Business Administration Role in Supporting Veterans
Access To Contracting
The federal government has a goal of awarding at least 3% of its contracting dollars to SDVOSBs and at least 5% to VOSBs each year.
To participate in federal contracting as a SDVOSB or a VOSB, veteran owned businesses must be verified by the VA’s Center for Verification and Evaluation (CVE) and register in the System for Award Management (SAM).
Access to Marketing
Veteran owned businesses can use the veteran owned business logo on their website, social media, business cards, and other marketing materials to promote their business and attract customers who want to support veterans.
Veteran owned businesses can also join various organizations and networks that can help them connect with other veteran small business owners, such as the National Veteran-Owned Business Association (NaVOBA), which provides certification, advocacy, and recognition for veteran owned businesses.
Challenges of Being a Veteran Owned Business
Being a veteran owned business can also pose some challenges, such as:
Transitioning Service Members: From Military Service to Business Success
Veteran entrepreneurs may have to adjust to a different culture, lifestyle, and mindset when they leave the military and enter the civilian world.
They may also have to deal with physical, mental, or emotional issues that resulted from their military service such as post-traumatic stress disorder (PTSD), traumatic brain injury (TBI), or service-connected disability.
Veteran entrepreneurs may need to seek professional help or support from their family, friends, or fellow veterans to cope with these challenges.
Managing the Business
Veteran entrepreneurs may have to wear many hats and handle various aspects of the small business, such as accounting, marketing, sales, customer service, human resources, and legal issues.
They may have to learn new skills or hire employees or contractors to help them with these tasks. They may also have to balance their time and energy between their business and their personal life.
Facing Competition
Veteran entrepreneurs may have to compete with other businesses that offer similar products or services in their market.
They may have to differentiate themselves from their competitors by offering better quality, lower prices, faster delivery, or superior customer service.
They may also have to keep up with the changing trends and demands of their customers and industry.
Creating Jobs
According to a 2013 infographic by Entrepreneur.com, veteran-owned businesses employed 5.8 million people and paid $210 billion in annual payroll.
According to a 2020 report by SBA’s Office of Advocacy, veteran-owned employer firms had an average of 17 employees per firm.
Resources and Support for Veteran Owned Businesses
Veteran entrepreneurs can access various resources and support that can help them start and grow their veteran owned small business. Some of the resources and support include:
SBA’s Office of Veterans Business Development (OVBD)
This office is devoted exclusively to promoting veteran entrepreneurship and facilitating the use of all SBA programs by veterans, service-disabled veterans, reservists, active-duty service members, transitioning service members, military career and their dependents or survivors.
OVBD oversees Veterans Business Outreach Centers (VBOC) across the country that provide business plan workshops, concept assessments, mentorship, and training programs for eligible veterans.
OVBD also administers various programs and initiatives for veteran entrepreneurs, such as Boots to Business, WVETP, SDVETP, MREIDL, Lender Match, and federal contracting opportunities.
VA’s Office of Small and Disadvantaged Business Utilization (OSDBU)
This office is responsible for ensuring that veteran owned small business have access to federal procurement opportunities within the VA. OSDBU provides outreach, training, counseling, and technical assistance to veteran owned small business.
OSDBU also manages the CVE verification process for SDVOSBs and VOSBs that want to participate in federal contracting as well as the Vets First Verification Program that gives verified SDVOSBs and VOSBs priority in VA contracting.
Department of Defense’s Transition Assistance Program (TAP)
This in person classes program provides information and resources to help service members transition from military to civilian life.
TAP also offers optional tracks that focus on specific transition goals, such as entrepreneurship (Boots to Business), education (Accessing Higher Education), or employment (Career Technical Training).
SCORE
This is a nonprofit organization that provides free mentoring and education to small business owners and aspiring entrepreneurs. SCORE has a network of over 10,000 volunteer mentors who have experience in various industries and fields.
SCORE also offers online workshops, webinars, courses, and resources on topics such as business planning, marketing, financing, management and more.
SCORE also has a dedicated website for veteran entrepreneurs that features success stories, articles, and resources for veteran owned small business.
Veteran Business Associations
There are various associations and organizations that support and advocate for veteran small businesses. Some of them include NaVOBA, which provides certification, advocacy, and recognition for veteran owned businesses; American Legion, which offers business counseling, networking, and mentoring for veteran entrepreneurs; and VetFran, which helps veterans access franchising opportunities and discounts.
Empowering Military Spouses in Entrepreneurship
Military spouses face unique challenges due to frequent relocations and the demands of military life. However, many military spouses are determined to establish their own businesses and contribute to their family's financial stability.
By supporting military spouse entrepreneurs, we not only help them thrive but also strengthen the resilience of military families and communities.
Small Business Administration's Role in Supporting Veterans
The Small Business Administration (SBA) recognizes the potential of veteran-owned business and offers various small bussiness loans, resources and programs to support their growth.
Success Stories of Veteran Owned Businesses
There are many examples of successful veteran owned businesses that have made a positive impact on the economy and society. Some of them include:
Black Rifle Coffee Company
This is a coffee roaster and retailer founded by former Army Special Forces members who wanted to create a company that supports veterans, law enforcement, and first responders. Black Rifle Coffee Company sources its coffee beans from various countries, roasts them in-house, and sells them online and in its brick-and-mortar locations.
Black Rifle Coffee Company also donates a portion of its profits to various veteran causes and organizations, such as the Wounded Warrior Project, the Fisher House Foundation, and the Gary Sinise Foundation.
Combat Flip Flops
This is a footwear and apparel company that manufactures its products in conflict zones and supports local communities. Combat Flip Flops was founded by former Army Rangers who served in Afghanistan and wanted to create a positive change in the regions they fought in.
R.Riveter
This is a handbag and accessories company that employs military spouses across the country. R.Riveter was founded by two military spouses who wanted to create a flexible and portable source of income for themselves and other military spouses who face frequent relocations and unemployment.
R.Riveter operates on a unique model where each product is handmade by a team of remote workers who receive the materials and instructions from the company and ship the finished products to the headquarters.
R.Riveter also supports various military charities and organizations, such as The Rosie Network, The Military Family Advisory Network, and The USO.
Conclusion
Veteran owned businesses are an important part of the U.S. economy and society. They contribute to job creation, innovation, and economic growth. They also serve as role models and inspirations for other veterans and civilians who want to pursue entrepreneurship.
If you are a veteran who wants to start or grow your own business, you can take advantage of various programs and resources that can help you achieve your goals. You can also overcome the challenges and seize the opportunities that come with being a veteran entrepreneur.
You can start by registering your business with the VA’s CVE
References
Data on Minority-Owned, Veteran-Owned and Women-Owned Businesses. (2021). U.S. Census Bureau. https://www.census.gov/newsroom/press-releases/2021/annual-business-survey.html
Facts About Small Business: Veteran Ownership Statistics. (2020). SBA’s Office of Advocacy. https://advocacy.sba.gov/2020/11/11/facts-about-small-business-veteran-ownership-statistics/
By the Numbers: U.S. Veteran-Owned Businesses (Infographic). (2013). Entrepreneur.com. https://www.entrepreneur.com/article/229886Facts About Small Business: Veteran Ownership Statistics. (2020). SBA’s Office of Advocacy. https://advocacy.sba.gov/2020/11/11/facts-about-small-business-veteran-ownership-statistics/
Veteran-owned businesses | U.S. Small Business Administration. (n.d.). https://www.sba.gov/business-guide/grow-your-business/veteran-owned-businesses
Office of Small & Disadvantaged Business Utilization. (n.d.). https://www.va.gov/osdbu/
Transition Assistance Program (TAP). (n.d.). https://www.dodtap.mil/
Veteran-Owned Businesses | SCORE. (n.d.). https://www.score.org/veteran-owned-businesses
National Veteran-Owned Business Association | NaVOBA. (n.d.). https://navoba.org/
American Legion Small Business Task Force | The American Legion. (n.d.). https://www.legion.org/smallbusiness
VetFran: A Strategic Initiative of the IFA Foundation. (n.d.). https://www.vetfran.com/