Veteran Entrepreneurship: Start-Up Support for Service Leavers in the UK and US

Veterans in the US own about 5.4 percent of employer businesses, and in the UK the main route to start-up finance for service leavers is the government-backed Start Up Loan of up to £25,000, delivered for the armed forces community through X-Forces Enterprise. This guide compares the support on each side of the Atlantic with named schemes, amounts and contacts.

The scale of veteran business ownership

The US Census Bureau's 2022 Annual Business Survey (published November 2024, covering 2021) found 304,823 veteran-owned employer firms out of 5,681,118, a 5.4 percent share. Those firms generated about $922 billion in revenue, around 5.3 percent of classifiable employer-firm revenue. Professional, scientific and technical services was the largest sector, with 52,167 veteran-owned firms (6.1 percent of that sector). Among responding veteran owners, 14.9 percent were service-disabled. The survey covers employer firms only, so sole traders without staff sit outside these numbers. Source: US Census Bureau.

The UK sources reviewed for this article give outcome data for specific schemes. X-Forces Enterprise reports supporting 3,000 businesses in the armed forces community with £33.5 million of Start Up Loan finance since 2013, with around 10,000 jobs created or sustained. In the 12 months to March 2024 it made 415 loans, 31 percent to female-led businesses (figures from a 21 May 2024 release).

UK and US support side by side

UK: how to get support

Start Up Loans

The Start Up Loans scheme is government-backed. The scheme site lists a fixed rate of 7.5 percent a year, a term of 1 to 5 years and loans of up to £25,000, with an average of £10,264. The X-Forces Enterprise funding page lists £500 to £25,000, an average of £11,000 and a 6 percent rate, so confirm the current rate when you apply. Eligibility on the X-Forces page includes:

• Age 18 or over and a UK resident with the right to live and work in the UK.
• Starting a new business or trading for up to 36 months (the scheme site says fewer than 60 months for its first criterion, so check which applies to you).
• Unable to obtain finance elsewhere (self-declaration is acceptable).
• A credit check passed and repayments affordable.

Applicants register at apply.startuploans.co.uk. Typical documents are proof of identity, proof of address, a personal bank account and three months of personal bank statements. Recipients get a dedicated business advisor and 12 months of free mentoring.

X-Forces Enterprise and Heropreneurs

X-Forces Enterprise is a charity that supports the armed forces community into self-employment and acts as the community partner for Start Up Loans. The Forces Employment Charity runs Heropreneurs, which matches service leavers, veterans, reservists, spouses and partners with an expert business mentor at no cost. Mentees check in monthly with their mentor. Apply through the Heropreneurs registration page or call 0121 262 3058.

Other UK routes listed by Start Up Loans

• The Barriers To Start Up Grant: a £1 million fund for unemployed veterans in Wales, with up to £2,000 per recipient, funded by Business Wales with support from The British Training Board.
• The Veteran Founders programme at Barclays Eagle Labs: mentor network and events for serving and former personnel, reservists and the wider community.
• The Defence Office for Small Business Growth, for firms that want to enter the defence supply chain.

Check each programme's own page for current availability. These come from the Start Up Loans veteran guidance.

US: how to get support

Boots to Business

Boots to Business is the SBA's entrepreneurship course, offered on military installations worldwide through the Transition Assistance Program. A typical session runs over two days: Day 1 covers modules 1 to 4 and Day 2 modules 5 to 8, covering opportunity recognition, markets and competition, start-up economics, legal entity selection, financing and business planning. It is open to active duty personnel including Guard and Reserve, veterans of all eras and military spouses (some events need base access). Veterans of all eras can use the Reboot version, and graduates of either can take Revenue Readiness, a six-week online course that turns an idea into a working model. See the SBA's veteran-owned business guide and a sample session listing.

Veterans Business Outreach Centers

VBOCs operate nationwide and offer business plan workshops, concept assessments, mentorship and training to eligible service members, veterans and National Guard and Reserve members. Use the locator on the SBA veterans pages. The Office of Veterans Business Development is at 409 3rd St. SW, Suite 5700, Washington, DC 20416, phone 202-205-6773, email veteransbusiness@sba.gov.

Certification and federal contracts

SBA VetCert covers veteran-owned and service-disabled veteran-owned small businesses. The firm must be at least 51 percent owned and controlled by veterans (for SDVOSB status, by veterans the VA has rated as service-disabled), and the VA must recognise the owner as a veteran. The firm must also meet the SBA size standard for a NAICS code in its SAM profile. The federal government aims to award at least 5 percent of contracting dollars to SDVOSBs each year. Apply at certifications.sba.gov, email certifications@sba.gov or call 866-SBA-HELP (866-722-4357). The December 22, 2024 certification deadline has passed. See the SBA's veteran contracting page.

Loans

SBA Microloans go up to $50,000, average about $13,000 and run up to seven years, with interest generally between 8 and 13 percent depending on the intermediary lender. Larger SBA 7(a), 504 and Lender Match tools are listed on the SBA loan pages. Military Reservist Economic Injury Disaster Loans exist for businesses that lose an employee called up from the Reserve or National Guard.

Practical steps for service leavers

1. Write a one-page plan covering customers, pricing and the first twelve months of cash.
2. UK: book a Heropreneurs mentor and talk to X-Forces Enterprise before applying for a Start Up Loan.
3. US: attend Boots to Business or Reboot, then contact your nearest VBOC.
4. Register the business, open a separate business bank account and keep personal and business money apart from day one.
5. Read the guide to starting a business after the forces and, for US veterans, the VR&E self-employment track.