Startups are still going strong, and veterans are one of the leading groups of new small business owners. According to Gusto’s 2024 New Business Formation Report, entrepreneurship among veterans increased 60% in 2023.
As Gusto senior economist, Nich Tremper notes, “Veterans continue to represent a large share of entrepreneurs nationwide. Responsible for nearly 1 in every 10 new businesses created in 2023, the veterans we surveyed reported a desire to give back to the people in their communities and make a positive impact through their businesses. This commitment to service, fostered during their military careers, is carried on through their creation of jobs and support within their communities.”
Reasons for startup
Gusto’s report shows that, veteran business owners, like many entrepreneurs, decide to start a company because they’re “drawn to the independence business ownership offers.”
- 63% of veteran founders started a business because they wanted to have more flexibility and be their own boss
- 62% wanted to have control over their time and path in life
- 57% wanted the financial stability to support themselves and their families or to build a long-term asset
Technology was a powerful motivator as well. Three times as many veteran entrepreneurs as those in Gusto’s full sample of business owners surveyed (15% compared to 5%) say they started a business because technology lowered the barriers to startup.
Community-minded
Veterans are dedicated to helping others. And that’s reflected in their entrepreneurial motivations as well. Almost half (47%) report starting a business because they wanted to have a positive impact on their communities, while 32% say it was important to create local jobs.
This was reflected in the type of businesses they started:
- 56% started a personal services business
- 18% started a professional services firm
- 16% started a goods-producing company
- 9 % started a community-services business
Military training
Military experience is good training for an entrepreneurial career. Gena Pineda, the founder of Aspiring Smiles Dentistry, says her military service taught her numerous “essential” skills that were critical to helping her “seamlessly transition into my role as a business owner. Most notably was people management as well as a sense of patience that have proven invaluable assets in my entrepreneurial journey.”
Veterans Day is Monday. If you are a veteran reading this, thank you for your sacrifice and service.
You can find more information on the Gusto Report here.
Rieva Lesonsky is President of Small Business Currents, LLC, a content company focusing on small businesses and entrepreneurship. Email Rieva at rieva@smallbusinesscurrents.com, follow her on Twitter @Rieva, and to get the scoop on business trends and sign up for Rieva’s free Currents newsletter.
Veteran entrepreneur picture by DC Studio/Shutterstock