PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Thanking Veterans for Their Service, Including Veteran-Entrepreneurs

By at 10 November, 2020, 11:21 am

9.1% of U.S. businesses are majority-owned by veterans

by Raymond J. Keating-

We mark Veterans Day, November 11, as a day to thank those who served in the armed forces for their service to the country and to their fellow Americans.

The day started as “Armistice Day” in 1919 marking the one-year anniversary of the end of World War I. In 1954, President Dwight D. Eisenhower signed legislation renaming the date as “Veterans Day.”

Six years later, in a presidential proclamation about Veterans Day, Eisenhower wrote:

Whereas it is fitting that we set aside a special day each year to honor our veterans and give nationwide expression of our esteem for them… Let us celebrate that day with appropriate ceremonies not only in tribute to our veterans but also in rededication to the cause of peace with honor throughout the world.”

For many veterans, their service continues in a variety of ways in the private sector, and that includes as entrepreneurs and small business owners.

It turns out that, according to a report from the SBA’s Office of Advocacy, the most recent data (from 2012) reveal that veteran-majority-owned businesses represent 9.1 percent of all businesses in the U.S., including 2.08 million nonemployer firms and 442,485 with employees.

In terms receipts in 2012, veteran-owned employer firms earned $1.049 trillion, with nonemployer firms taking in $92.2 billion.

The percentage of veteran-owned businesses varied by industry from the overall 9.1 percent. For example, 12.9 percent in the mining, quarrying, oil and gas group were veteran-owned, as were 12.8 percent in finance and insurance, 12.1 percent in transportation and warehousing, and 11.4 percent in construction.

The SBA also found that veteran-owned employer firms are very small:

● 54.5 percent of all veteran-owned employer firms have one to four employees;

● 71.3 percent have from one to nine employees;

● 80.6 percent have from one to nineteen;

● 9.0 percent have twenty or more; and

● 3.2 percent have more than fifty.

What about location? Well, the states with the largest percentage of veteran-owned firms were:

● South Carolina at 13.0 percent

● New Hampshire at 12.2 percent

● Virginia at 11.7 percent

● Alaska at 11.7 percent

● Mississippi at 11.4 percent

Finally, the SBA reported:

“A recent SBA study also found that military service exhibits one of the largest marginal effects on self-employment, and veterans are 45% more likely to be self-employed than non-veterans.”

Veterans Day means thanking everyone who has served in the armed forces. For good measure, we can thank those veterans who also have chosen to take on the risks of helping to drive the economy forward as entrepreneurs.

Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council.

 

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