“Many veterans choose business ownership. However, veteran business ownership is falling,” reads a report by the SBA Office of Advocacy. “As those owners age out of the workforce, the number of veteran firms is decreasing. Meanwhile, the composition of the veteran population is shifting, and some demographic groups have experienced increases in veteran ownership.”
According to the “Deconstructing the Change in Veteran Business Ownership” report, veteran business ownership fell from 11% in 2014 to 8.1% in 2020. Looking at business ownership changes from 2017 to 2020, veteran-owned businesses were down by 11.5%.
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One of the biggest contributors to the decline in veteran business ownership is the age demographics of veteran owners. Over half of veteran business owners are age 65 or older while less than 10% of veteran owners are under age 45. The older generation of veteran business owners is retiring, and a 5.2% decline in ownership for veterans 65 or older reflects this shift. Of veterans who have served since 2001, less than 5% have started a business. |
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As the military population changes, the veteran population adapts as well. Certain groups are seeing an expansion in veteran ownership. In 2020, a majority of veteran businesses were owned by men (94.9%), but women veteran businesses have been on the rise from 2017 (3.8%) to 2020 (4.4%). Veteran ownership for racial and ethnic minorities is developing too. Black, Asian, and Hispanic veteran businesses have increased by 22%, 15.2%, and 13.9% respectively. |
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40% of veteran businesses were concentrated in three industries: professional, scientific, and technical services; construction; and retail trade. The growth of veteran businesses in these three industries declined anywhere from 8% to 11.5%. Two industries that experienced an increase in the share of veteran ownership were utilities and information. Source: |
About the U.S. Small Business Administration
The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the Federal Government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.
