National Survey of Military-Affiliated Entrepreneurs: 2020 Key Highlights
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.
- For more data highlights, please see the 2020 IVMF National Survey of Military Affiliated Entrepreneurs Infographic
- You can also view the accessible word document here.
Motivations for Entrepreneurship
Top 5 Reasons Veterans Start a Business
Make my own decisions.
Chance to implement own ideas/creating something.
Opportunity to be financially independent/increase.
personal income.
Maintain personal freedom.
Helping society/supporting community.
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?