According to the U.S. Department of Veterans Affairs, there are about 19 million veterans living in America. Many of these people who served their country are starting businesses, joining an increasing number of Americans who sought to become entrepreneurs after the onset of COVID-19, according to the U.S. Census Bureau.
Demographic data sheds light on who these veterans are. According to the U.S. Bureau of Labor Statistics, around nine out of 10 veterans are men. The largest cohort is over 60 years old, comprising about a 35% share of the U.S. veteran population. In October 2021, an estimated 8.4 million veterans participated in the civilian workforce, and in 2021, the unemployment rate for veterans (4.4%) was lower than the rate for nonveterans (5.3%).
The rise in overall entrepreneurship seems logical in the face of an undeniable fact: a decreasing number of Americans are realizing the American Dream. According to Pew Research, the U.S. middle class has contracted steadily over the last five decades. In 1971, the share of American adults who lived in middle-class households was 61%. By 2021, that number was 50%. Pandemic-related financial issues impacted lower- and middle-income households the hardest; from 2019 to 2020, median incomes fell 3.0% for lower-income households and 2.1% for middle-income households. There was almost no change in the median incomes of upper-income households during the same period.
For most business owners (roughly 64% according to the Census Bureau’s Annual Business Survey), achieving greater income is one of the primary drivers behind owning their businesses. And that number is fairly consistent across veterans and nonveterans. Interestingly though, when comparing veteran business owners to nonveteran owners across other metrics, there are a few notable differences. Compared to nonveterans, veteran business owners value being their own boss, working for themselves, and wanting to start their own business more heavily. On the other hand, nonveterans are more likely to report having flexible hours and a better work-life balance as primary motivators for business ownership.
Comments are closed.