Nearly a quarter of the one million service members who will transition out of the military over the next five years will try and start their own business.
Of those people only 4.5 percent will succeed due to lack of access to capital and networking according to a news release.
To address this statistic JPMorgan Chase is making a $4.2 million grant to Texas-Based PeopleFund, Bunker Labs and with Community Development Financial Institutions in California, the Carolinas and Florida to support local veteran-owned businesses.
According to a news release, this investment will help a veteran-owned small business lending collaboration drive more capital and expertise to veteran-owned businesses nationwide.
The investments are a part of JPMorgan Chase’s Small Business Forward program to invest $75 million over the next three years in support of women, minority and veteran-owned small businesses through a series of data-driven approaches to help build their long term success, while also creating local and inclusive economic growth.
“PeopleFund creates economic opportunity and financial stability for veterans and other underserved people by providing access to capital, education and resources to build healthy small businesses,” said Gary Lindner, CEO of Austin-Based PeopleFund, in the release. ”We inspire, educate, fund, and elevate entrepreneurs on the path to prosperity and the American Dream.”
According to the release, 9 percent of all businesses in the country are veteran-owned, representing nearly six million employees and $1.2 trillion in sales every year.
“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, in the 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.”
Additionally, the release stated that a new Chase Business Leaders Outlook study reveals that veteran-owned businesses report a stronger business outlook in 2018 than their non-veteran peers.
Top findings were included in the release:
— Veteran-owned small business leaders tend to have a more strongly optimistic outlook than their non-veteran peers.
— 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/compensation compared to non-veteran peers.
— 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 peers to be certified as “Green,” “Minority Owned,” or “Women-Owned.”
— The majority of veteran-owned businesses are also mobile- and social-centric with 73 percent having used mobile banking apps for their businesses, and 66 percent say social media has had a positive impact on their business.
— Veteran-owned businesses are more likely than non-veteran peers to spend money on mobile advertising (42 percent versus 19 percent of non-veterans).