The IVMF National Survey of Military-Affiliated Entrepreneurs monitors trends in the activity, needs, and economic, social, and policy barriers of military-affiliated entrepreneurs in the United States. In its inaugural year, the intent was to draw from a cross-sectional sample of over 2,500 veteran entrepreneurs. Future surveys will also track trends and pressing issues. For example, in 2020 the survey was updated to focus on such COVID-19. All NSMAE surveys and forthcoming public datasets will be an enduring source of current insights for public and private sector leaders, policymakers, and community-based organization on systemic barriers to and drivers of entrepreneurial success among veterans and their family members.
94% do not give up easily even in the face of difficulties.
Barriers to Entrepreneurship
Top Problems or Barriers in Pursuing or Achieving Business Goals
Financial Related Barriers
A) 66% reported difficulty with applying for grants from nonprofit organizations
B) 49% reported difficulty with applying for loans
C) 53% reported difficulty with identifying sources of funding to start the business
D) 34% were turned down by lender or creditor when applying for financing
Regulation Barriers
0%
Reported that the certification process is difficult
0%
Reported difficulty obtaining the necessary licenses to operate business
0%
Reported difficulty registering your company with e-verify
Major Factors that Impact Starting a Business
People and Social Capital
40% Lacked formal help to start a business
32% Lacked experience or exposure to someone who has run a business
Capital
33% Couldn’t afford long-term capital
27% Couldn’t afford start-up costs
Experience/Knowledge
27% Didn’t know practical details to start a firm
23% Didn’t know the legalities of starting business
What does entrepreneurship success look like to you?
Capital
Sources of Capital
72% needed capital to start/grow their business. Top three Sources of Capital used in 2019 are: Personal/family savings of the owner (63%) Business credit card (38%) Personal credit cards (35%)
Capital for Different Stages: Startup
0%
In 2019, 59% needed less than $25,000 to start or acquire their business while 54% needed more than $25,000 to grow their business
0%
In 2019, 60% of startup entrepreneurs were able to secure the initial funding for starting or acquiring a business while 41% of established entrepreneurs were able to secure the funding needed to grow their business.
0%
In 2019, 25% of startup owners and 31% of established business owners were not able to secure any funding at all
Capital for Different Stages: Growth
0%
54% needed more than $25,000 to grow their business
0%
41% were able to secure the funding needed to grow the business in 2019 while 31% were not able to secure any funding at all
0%
27% does not feel prepared for the traditional lending process
Credit Card
0%
43% of business debt is on credit cards
0%
66% pay an interest rate that is higher than 10%
0%
19% pay an interest rate between 20-29.99%
What does entrepreneurship success look like to you?
Support and Resources for Entrepreneurship
Limited Resource Awareness
0%
44% did not know about resources for grants in their local area
0%
52% did not know about Community Development Financial Institutions (CDFIs) in their local area
0%
36% did not know about local incubators and accelerators in their local area
Resources in Communities
Financial Resources
59% indicate grant resources need improvement, 32% indicate this resource is sufficient, and 19% indicate this resource is outstanding
43% indicate CDFI resources need improvement, 44% indicate this resource is sufficient, and 14% indicate this resource is outstanding
Educational Resources
34% indicate local incubators and accelerators need improvement, 41% indicate this resource is sufficient, and 25% indicate this resource is outstanding
16% indicate local colleges and universities need improvement, 47% indicate this resource is sufficient, and 37% indicate this resource is outstanding
Networks and Membership Organizations
37% indicate networking resources for VBOs need improvement, 40% indicate this resource is sufficient, and 23% indicate this resource is outstanding
32% indicate local VSOs need improvement, 42% indicate this resource is sufficient, and 26% indicate this resource is outstanding
What does entrepreneurship success look like to you?
COVID-19 Pandemic
65% of veteran entrepreneurs indicate that their military experience has moderately or extremely prepared them for their business challenges associated with COVID-19 pandemic
76% of veteran entrepreneurs indicate that they lost business due to the pandemic