The U.S. Small Business Administration’s Office of Advocacy recently released an encouraging report on veteran-owned businesses. The report, based on the latest available data from the U.S. Census Bureau’s 2012 Survey of Small Business Owners, shows about 2.52 million businesses in the U.S. majority-owned by veterans.
Almost all of these veteran-owned businesses at the time (99.9 percent) were small businesses.
According to the SBA report entitled “Veteran-Owned Businesses and Their Owners,” firms owned by veterans employed more than 5 million people, had an annual payroll of $195 billion, and receipts of $1.14 trillion. The veteran-owned firms represented 9.1 percent of all U.S. businesses.
“Entrepreneurship is a choice made by many of our men and women in uniform when they move into civilian life,” said Dr. Winslow Sargeant, former Chief Counsel for Advocacy for the SBA, in a previous statement about a similar SBA study. “Knowing more about the factors behind veterans’ self-employment offers opportunities to lay the groundwork for successful ventures.”
California, Texas and Florida had the most veteran-owned businesses respectively, while the highest percentage of veteran-owned businesses in their populations were found in South Carolina, New Hampshire and Virginia.
Other highlights from the study include:
- Nearly 30 percent of all veteran-owned firms were in two industry groups: construction and the professional, scientific and technical services group.
- The industry with the largest share of veteran-owned firms was finance and insurance (13 percent), followed by transportation and warehousing (12 percent), and construction (11 percent).
- Five industry groups accounted for 71 percent of all veteran-owned firm sales: wholesale trade (22 percent), retail trade (19 percent), manufacturing (12 percent), construction (10 percent), and professional, scientific, and technical services (7 percent).
Also, a bigger percentage of veteran-owned businesses were home-based (57 percent) compared with other businesses (52 percent) in the rest of the population. And the most common method for veterans to become business owners was to start their own businesses themselves.
Veterans looking for funding to start or expand a business can turn to Biz2Credit for help. To geet started, check out www.biz2credit.com/business-loan/veteran-loans.