Key Findings
- Entrepreneurship among veterans is increasing. Veteran founders accounted for 8% of new businesses in 2023, an increase from 5% in 2022. With veterans accounting for 6% of the U.S. adult population, they’re showing up at higher rates in entrepreneurship than they are in population makeup.
- Veteran founders are community oriented. 56% of veteran entrepreneurs started a business in a category that tends to have direct contact with community members, such as restaurants, barber shops, and health care firms.
- More than 3 in 5 veteran founders said they started a business because they wanted to have more flexibility and to be their own boss. Additionally, 57% said they wanted to grow a business that could support them and/or their families far into the future.
Introduction
Veterans are known for being service-oriented, a quality that shines through in their business ownership. Nearly half of the veterans who started a business in 2023 said having a positive impact on their communities was a priority for them, while around a third said it was important that they create local jobs, according to Gusto’s 2024 New Business Formation Report, which surveyed 1,300 entrepreneurs who started a business in 2023.
That desire to help others is also reflected in the kinds of businesses many veteran entrepreneurs start. More than half of the veterans who launched a business in 2023 founded a company with a close connection to its local community. A little more than a quarter of veteran founders (56%) started a personal services business, such as a restaurant or retail shop, and nearly one-in-ten (9%) opened a community services firm, such as a health care or education company.
Veteran entrepreneurs also care about their and their family’s independence, with more than half citing flexibility and the ability to be their own boss (63%), growing a business that would allow them to support themselves and their families far into the future (57%), and having control over their time and path in life (62%) as priorities.
Veterans Started 8% of New Businesses in 2023
Veterans started 8% of new businesses in 2023, slightly increased from the year before. Veterans started businesses at a rate exceeding their population in 2023, with veterans accounting for 6% of the U.S. adult population.
Veterans Make Service a Priority
Veterans show a preference for starting businesses that are closely tied to serving people in their communities. More than half of the veteran entrepreneurs in our survey started a business in a category that tends to have direct contact with community members, such as restaurants, barber shops, and health care firms.
Nearly two-thirds of veteran-started businesses were either personal or community service companies.
Autonomy and Stability Are Priorities for Veteran Founders
Like many entrepreneurs, veteran entrepreneurs are drawn to the independence that business ownership offers. Sixty-three percent of veteran founders said they started a business because they wanted to have more flexibility and to be their own boss, while more than half (57%) said they wanted financial stability or to build a long-term asset.
While veterans were similarly likely to say that they seized a business opportunity as our full sample, they were nearly three times as likely (15% vs 5%) to say that they started a business because technology lowered the barriers to starting their businesses..
While veterans value long-term financial stability at a similar rate as all the founders in our survey, they’re more likely to prioritize quality of life for them and the people they care about than becoming wealthy. Veteran founders were most likely to say growing a business that could support them and their families far into the future (72%) and having control over their time and path in life (64%) were important to them.
They also cited community-oriented benefits, like making a positive impact on their communities (47%) and creating local jobs (32%).
Conclusion
Veterans show a strong commitment to helping others through their military service, and that desire to create a better future for the world around them is clear in their approach to entrepreneurship. From creating local jobs to building a strong future for their families, veterans keep the interests of their loved ones front and center. Supporting veteran entrepreneurship will allow more communities to benefit from these important businesses.
