Advancing Military-Connected Entrepreneurship

The Advancing Military-Connected Entrepreneurship Initiative, funded by Walmart, aims to enhance the entrepreneurship ecosystem and support veterans, military spouses, and other military-connected business owners as they develop their businesses.

From Summit to Action

At the 2024 Veteran EDGE conference, IVMF Research and Walmart partnered to host a workshop called The Military-Connected Entrepreneurship Ecosystem: Growth, Empowerment, and Connectivity Summit. This summit brought together 13 corporate or business ecosystem partners and 51 military-connected business owners to discuss opportunities and challenges with doing business in the private sector across four topic areas. Within each area the summit identified key implications for military-connected businesses, veteran entrepreneurship programs, corporate partners, and opportunities for collaboration.

Enhancing Access & Readiness for Corporate Procurement

Ecosystem Integration & Collaboration

Capability Development & Competitive Positioning

Corporate Engagement & Support Strategies

Topic 1—Enhancing Access & Readiness for Corporate Procurement

For Military-Connected Businesses – Being capital-ready is key to scaling for corporate contracts, but that is only the first step. Not only should military-connected entrepreneurs be prepared financially for new contracts, they must also prepare for other resourcing challenges such as manufacturing support, cash flow management, and hiring.

Understanding Financial Implications

The discussion brings to light the financial considerations small businesses must make when entering into contracts with larger corporations. An example given was the necessity of hiring additional staff to fulfill a contract, which can significantly impact a small business’s operating margin and revenue requirements.

CAPITAL ACCESS RECOMMENDATIONS

Provide information on what type of capital is available and appropriate.

Address personal credit as a barrier to capital access.

Invoice financing options or ways to identify more favorable terms.

DATA INSIGHT

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of military-affiliated entrepreneurs are unsure of how to perform financial analysis, and 23% are unsure of how to develop a financial system with internal controls, highlighting the need for better financial management skills.

Topic 2—Ecosystem Integration & Collaboration

For Veteran Entrepreneurship Programs – The veteran entrepreneurial ecosystem can create more networking opportunities to connect veterans with the right corporate decision-makers in their community, industry, or the appropriate buyer within the corporation.

Creating Opportunities for Collaboration

The dialogue suggested a desire for more collaborative opportunities within the veteran business ecosystem, including better pathways for connecting with corporations and improving visibility for veteran-owned businesses.

ECOSYSTEM RECOMMENDATIONS

Networking events to increase corporate awareness of VOBs and make personal connections.

Platform to connect VOBs to opportunities, such as repository for corporates to find VOBs hosted by a third party like IVMF or NaVOBA.

Incorporate more VOBs into CVOB to improve networking opportunities with decision makers.

DATA INSIGHT

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of military-affiliated entrepreneurs report utilizing entrepreneurial resources related to their business, showing a strong engagement with available resources but a need for improved collaboration opportunities.

Topic 3—Capability Development & Competitive Positioning

For Collaboration Opportunities – Ecosystem and corporate collaborations supporting military-connected entrepreneurs should facilitate two-way conversations: solicit feedback from veterans on what is needed and how well processes work, while helping corporations communicate their needs and priorities to military-connected business and those working to educate and train entrepreneurs.

Value of Conversations and Compensation

Continuous conversations are valuable for understanding each other’s needs, capabilities, and constraints. Communication between businesses and corporations can help address the importance of fair compensation and structuring contracts in a way that is sustainable for smaller businesses.

SUPPORT SYSTEMS RECOMMENDATIONS

Access to programs similar to SkillBridge.

Create a Veteran Institute of Procurement (VIP) for corporations.

Create “common app” of supplier diversity for all companies to find VOBs.

DATA INSIGHT

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of military-affiliated entrepreneurs expressed uncertainty about their ability to control costs, highlighting the need for clear and fair compensation structures.

Topic 4—Corporate Engagement & Support Strategies

For Corporate Partners – Military-connected entrepreneurs are interested in the ‘why’ when corporations seek to work with them. Communicating why and how your corporation works with military-connected small businesses is key to building trust. Partner with veteran-owned businesses by helping them understand how your company will connect their products or services to end-users or consumers.

Veteran-Owned Business Recognition

There is a perception among participants that being a veteran-owned business does not significantly advantage them in corporate procurement compared to minority or women-owned businesses.

SUPPORT RECOMMENDATIONS

Peer to peer or teaming opportunities for VOBs to share resources.

Guide military-connected businesses to better position themselves to corporate partners.

Access to customer and forecasting data.

DATA INSIGHT

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Across national veteran-focused certifications, on average 31% of military-affiliated entrepreneurs were unsure if those certifications are helpful to their business.

Post-Summit Recommendations

For Military-Connected Owned Businesses

Networking

Actively participate in networking events to build relationships with corporate decision-makers and other military-connected businesses.
Engage in mentorship programs for guidance on navigating corporate procurement processes.

Capability Development

Focus on developing business capabilities, such as infrastructure, access to capital, and marketing strategies, to be competitive in corporate procurement.
Leverage military-connected business certifications appropriately in both government and corporate sectors.

Market Intelligence

Gather market intelligence and utilize available resources, such as the SBA and local entrepreneurial networks, for business planning and support.
Conduct regular competitive analysis to stay ahead in the market and identify potential areas for growth and innovation.

For Corporate Partners

Communication and Feedback

Create platforms for direct communication and feedback with military-connected businesses to understand their needs and provide guidance on aligning with corporate procurement requirements.
Develop regular feedback loops to continuously improve engagement strategies with military-connected businesses.

Supplier Diversity

Enhance supplier diversity programs by actively matching military-connected businesses with opportunities and promoting their businesses to consumers.
Ensure transparency in procurement processes with clear guidelines and feedback mechanisms for military-connected businesses.

Contract Sizing

Craft contracts and opportunities appropriately sized for small businesses, considering their unique capabilities and limitations.
Simplify contract terms and conditions to make them more accessible to small businesses.

For Practitioners in Veteran and Entrepreneurship Programs

Collaboration and Resources

Create opportunities for collaboration within the military-connected business ecosystem, including better pathways for connecting with corporations.
Develop and provide resources that address the specific needs of military-connected entrepreneurs, such as training for corporate contracting and support for capability development.

Training Programs

Provide training related to corporate contracting, market research, sales, pitching, financing, and the latest technology.
Offer continuous education programs to keep military-connected businesses updated on industry trends and best practices.

Infrastructure and Performance

Assist military-connected businesses in building a track record of past performance and developing the necessary infrastructure to be competitive in corporate procurement.
Provide guidance on building strong financial management systems to support business growth and sustainability.