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.
Military-Connected Entrepreneurship Ecosystem
Advancing Military-Connected Entrepreneurship
Summary
The research objectives include enhancing insight and understanding of military-connected entrepreneurship, identifying economic, political, and socio-cultural barriers to business ownership for people with different military backgrounds, assessing business readiness for corporate procurement and other special focus areas, and identifying interventions that IVMF can deliver to improve procurement readiness and opportunity capture in commercial procurement. The programming objectives focus on developing and delivering programs to address gaps identified through our research and insights, and fostering procurement readiness among veteran and military spouse business owners so they can do business with large companies.
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.
Data Insight
21% 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.
Data Insight
71% 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.
Data Insight
31% 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.
Data Insight
31% 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.