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
Closure during COVID-19:
Of those that anticipate closing:
Top resource needs during COVID-19:
CARES Act's Payroll Protection Program (PPP):
CARES Act's Economic Injury Disaster Loan (EIDL):
Closure during COVID-19:
68% indicate that they do not anticipate closing their business
31% anticipate closing their business
1% already closed their business
Of those that anticipate closing:
13% can operate for less than 3 months
47% can operate between 6-12 months
40% can operate more than a year
Top resource needs during COVID-19:
37% were general funding (financing, loans, grants)
28% were government contracting assistance
25% were day-to-day operations
20% were emergency funding
16% involved assistance with adjusting marketing efforts
CARES Act's Payroll Protection Program (PPP):
53% were approved and received funding
4% approved, waiting for funding
6% applied, pending approval
12% eligible, have not applied yet
5% turned down
CARES Act's Economic Injury Disaster Loan (EIDL):
24% were approved and received funding
8% approved, waiting for funding
12% eligible, have not applied yet
5% turned down
31% not sure about eligibility
56% believe that their business has been supported by the federal government during the pandemic
60% believe that their business has NOT been supported by local government
What does entrepreneurship success look like to you?
Bunker Labs is now part of the IVMF
Syracuse University’s D'Aniello Institute for Veterans and Military Families (IVMF) proudly announces the acquisition of Bunker Labs, a renowned non-profit organization dedicated to veteran and military-spouse entrepreneurs.