Out of the 1 million military service members who will transition out of the armed forces during the next five years, one quarter will start a business. Only 4.5% of that quarter will succeed. These are just some of the findings in the new “Chase Business Leaders Outlook” study.
To support veteran-owned small businesses, JPMorgan Chase & Co announced a $4.2 million commitment as part of an overall $75 million effort –JP Morgan’s “Small Business Forward” program—to help women and minority-owned businesses succeed.
The funds will be used to provide business loans to veterans as well as tools and resources related to entrepreneurship. Veterans will have access to this capital through a number of financial institutions including Community Development Financial Institutions (CDFIs), Main Street Launch (California), Carolina Small Business Development Fund (North Carolina, South Carolina, and Florida), and PeopleFund (Texas).
“Veterans make excellent business owners, so it makes perfect sense for us to help connect them with the access to capital they need to succeed,” said Andrew Kresse, CEO of Business Banking at Chase via a press release. “We’re pleased to work with outstanding partners who serve the veteran business community, and in turn, help strengthen the communities in which we all live and work.”
“Those who have served bring invaluable skills like fortitude, leadership, and integrity to everything they do in the civilian sector,” JPMorgan Chase’s Head of Military and Veterans Affairs Ross A. Brown said in a released statement. “Supporting our veterans isn’t just the right thing to do; it also makes good business sense.”
JPMorgan’s support of veterans dates back to World War I. The study’s findings make a good case for supporting veterans in their business aspirations. Some of the study’s top revelations include:
- Veteran-owned small business leaders tend to have a more strongly optimistic outlook than non-veteran business leaders.
- In the next 12 months, more veteran-owned businesses expect to increase: profits, capital expenditures, and credit needs compared to non-veteran peers.
- Veteran-owned businesses also have stronger employment projections–more plan to increase employees compared to non-veteran businesses.
- Veteran-owned businesses are more likely than non-veterans to consider financing within the next 12 months.
- Veteran-owned businesses are more likely than non-veteran businesses to be certified as “Green,” “Minority-Owned,” or “Women-Owned.”
- The majority of veteran-owned businesses are also mobile- and social-centric–73% have used mobile banking apps for their businesses, and 66% say social media has had a positive impact on their business.
- Veteran-owned businesses are more likely than non-veteran businesses to spend money on mobile advertising (42% vs 19% of non-veterans).