From Service to Startup: Why Veteran Entrepreneurs Deserve Better Pathways

*Please note this hearing was dealing only with the Veterans, not the families or survivors, which I personally think is part of the problem. Issues that affect Veterans like this also affect their family and survivors*

For generations, military service and small business ownership moved hand in hand. After World War II, nearly half of returning service members became entrepreneurs. Today, that rate has collapsed to just over 4 percent among post-9/11 veterans. The question that echoed through the December 10 House Small Business Committee hearing was simple and a little uncomfortable.

If veterans bring discipline, planning, leadership, and a proven ability to thrive under pressure, why is it so hard for them to start and grow businesses?

This was not a hearing filled with vague platitudes about supporting the troops. It was a blunt assessment of a system that is failing the very population it claims to empower.

The Skills Are There. The Pathways Are Not.

Witness after witness underscored the same truth. Veterans do not struggle because they lack capability. They struggle because the civilian entrepreneurial world offers no clear roadmap.

Military life is built on structure. Then transition happens, TAP appears for five very long days, and suddenly service members are told they are on their own. Benefits are explained. Entrepreneurship is not. The majority never hear about accelerators, VBOCs, mentor-protégé programs, or even the tools available through the SBA.

In a world where veterans can execute a battle plan at 0500 with two cups of coffee and duct tape, the problem is not competence. It is access.

Capital: The Biggest Wall in the Way

Thirty-seven percent of veteran entrepreneurs identify capital as their top barrier. They face higher denial rates, are less likely to reapply after a denial, and often rely on personal savings rather than traditional financing. The modern GI Bill pays for education but does almost nothing to help a veteran build or buy a business.

Meanwhile, veterans own franchises at twice the civilian rate because franchises offer what the military always has: structure, clear processes, and predictable guidance. It is a glowing billboard that veterans can run businesses. The issue is getting them the capital to do it.

Contracting: The Opportunity That Slips Away

Federal contracting should be an on-ramp for veteran-owned businesses. Instead, it often functions like a maze with no exit signs.

Contract bundling packages opportunities so large that smaller veteran firms have no chance of bidding. Rule of Two protections are inconsistently applied. Prime contractors can miss veteran utilization goals with minimal consequences. And in some regions, SBA support has been stripped away altogether, leaving tens of thousands of veteran-owned businesses without guidance.

One witness estimated that more than 900 SDVOSBs and VOSBs lost contracts in 2025. In a field where repeat wins are the lifeline of growth, this loss reverberates far beyond economics.

The Transition Problem No One Wants to Own

Let us be honest. TAP is trying to teach a lifetime of transition in five days to people who are often focused on moving, clearing housing, and remembering where they packed their boots. It leans heavily on benefits and employment, but barely introduces entrepreneurship. Witnesses described it as a box-check, not a launchpad.

The fix is not complicated.
Start earlier.
Connect people to mentors.
Create warm handoffs.
Treat entrepreneurship like a viable path, not a footnote.

Most importantly, bring veteran business owners into TAP classrooms. They have the credibility and experience to make entrepreneurship real.

AND INCLUDE THE FAMILY, AS THEY ARE GOING TO BE PART OF THE DECISION-MAKING PROCESS FOR THESE VETERANS.

Entrepreneurship as a Path to Thriving

It is no secret that transition can take a toll. Witnesses spoke openly about mental health struggles, the loss of purpose, and the feeling of starting over from zero. What surprised some members of Congress is that entrepreneurship often improves mental health.

Veterans in CEO circles, accelerators, and peer networks report higher wellness, stronger connections, and renewed purpose. Entrepreneurship is not just an economic issue. It is a thriving issue.

The Policy Shift That Must Happen Now

The post-war GI Bill treated entrepreneurship as a national strategy. Today’s GI Bill treats it like an afterthought.

The hearing made one thing clear. Veterans do not want entitlement. They want empowerment. They want the tools to build, to innovate, and to create communities that thrive long after their service ends.

Congress has the ability to fix this. Modernize capital access. Strengthen VBOCs. Standardize warm handoffs. Reinforce contracting protections. Elevate veteran business owners as key voices in policy, not occasional witnesses.

Veterans signed blank checks to their country. The least we can do is remove the barriers that keep them from building the businesses that strengthen our communities, our workforce, and our economy.

The solutions are already known. The talent already exists. What is missing is the commitment to turn good intentions into working systems.