Veteran-Owned Small Business Insights

In honor of National Veterans Small Business Week, we highlight the important role veteran-owned businesses play in the American economy. Veteran entrepreneurs bring a unique set of skills and experience, helping to drive innovation and create jobs across the country. Below are four insights on veteran-owned businesses with employees based on the latest data from the Federal Reserve.

A majority of veteran-owned businesses expect increased revenue in the year ahead.

Currently, 54% of veteran-owned firms generate annual revenues between $100,000 and $1 million.¹ When asked about the financial health of their business, 44% say they are doing good, very good, or excellent, and only 16% report poor financial condition.² Notably, more than 60% of veteran-owned businesses expect their revenue to increase in the next year.³

More than half of all veteran-owned businesses are small firms.

Like other employer businesses, most veteran-owned businesses are small. Sixty-one percent of veteran-owned businesses operate with fewer than five employees, and 78% have less than 10.⁴ Half of veteran-owned businesses expect to keep their employment levels stable, while close to a third expect to increase hiring in the next year.⁵

Veteran-owned businesses have myriad struggles, from inflation to operations.

During the end of 2023, 80% of veteran-owned businesses cited rising costs of goods, services, and wages as a significant financial concern.⁶ Fifty-one percent struggled with paying operating expenses, and almost half experienced higher revenues in one month and lower in the next.⁷ In response to these financial pressures, more than half have raised prices, used personal funds or cash reserves, or obtained funding that must be repaid.⁸ Interestingly, veterans were 13 percentage points more likely to obtain repayable funding compared to non-veteran small business owners.⁹

Almost half of all veteran-owned businesses have limited access to credit.

Despite only 4% of veteran-owned businesses being labeled a high credit risk, 49% are not fully approved for loans.¹⁰ Compared to non-veterans, they are slightly more likely to rely on big banks and credit unions for financing.¹¹ According to the Small Business Administration, federal loans to veteran-owned small businesses increased by 14% last year.¹²