Texas is home to over 200,000 veteran-owned businesses, making it one of the leading states for veteran entrepreneurship. As the 8th largest economy in the world, second largest in the United States by GDP (gross domestic product), Texas does not have a corporate or personal income tax, offers a highly skilled and diverse workforce, and easy access to global markets.
Additionally, the State of Texas provides benefits for new, veteran-owned businesses. This includes waiving some startup fees plus waiving state franchise taxes for the initial five years. It’s no wonder Veterans can’t help but fall head over boots for Texas, where the wide-open spaces and friendly folks make it the perfect place to grow a business.
The Importance of Veteran-Owned Businesses
“Vetrepreneurs” as veteran entrepreneurs are often referred to bring unique skills and perspectives to the table, often rooted in the discipline, leadership, and teamwork learned during military service. A SCORE survey found veterans feel the military prepared them well for small business ownership by their approach to hard work and leadership skills learned through service. According to the Small Business Association, (SBA), veterans are 45% more likely to start their own business than the general population.
Veteran-owned businesses help meet the needs of their local communities and play a role in growing the economy. Whether it is services offered or hiring locally, veterans possess a unique set of skills that make them exceptional entrepreneurs.
As of August 2024, there were over 24,400 veteran owned businesses in Texas alone. That number has doubled since 2022.
Nationally, veteran-owned businesses contributed to $1 trillion in revenue to the U.S. economy with over 2-million veteran-owned businesses employing over 5-million Americans. Most of these businesses are in the professional, scientific and technical services sector.
The population of women veterans has more than doubled since 9/11 and is now estimated to make up 18% of the veteran population by 2040, with more female veterans embarking upon business ownership each year.
Safe to say, veterans make great business owners. However, many service members still face challenges in the business world, including navigating available resources. Finding a bank that stands out as a supportive partner for these entrepreneurs is imperative when growing a new or existing business.
Challenges Faced by Veteran Entrepreneurs
Veteran entrepreneurs face unique challenges transitioning from military to civilian life. Starting a business adds another layer of complexity. Access to capital, navigating regulatory requirements, and building a customer base are common hurdles. A 2023 report from Gusto, a payroll provider, found that veteran business owners were less likely than all entrepreneurs to have access to capital, and were more likely to obtain a private business loan. This is where a supportive banking partner becomes crucial.
What Should Veterans Look For in a Banking Partner?
Veteran small business owners should look for banks that offer veteran-friendly programs, SBA loan options, business support services, community involvement, convenience, competitive rates and fees, and have a strong reputation and financial stability.
1. Tailored Financial Solutions
It is imperative business owners work with a bank who offers a range of treasury products designed to meet the specific needs of small businesses. Whether it’s a business checking account, a line of credit, a loan for expansion, or a business credit card, access to these products and working with a banker who knows you and your business can be transformational.
2. Commitment to Community
Community banks are deeply invested in the success of local businesses. They focus on building long-term relationships with their clients and offer personalized service that larger banks often cannot match. Community banking also brings the benefit of local leaders making local decisions, cutting through the red tape typical of larger financial institutions.
3. Expertise and Support
Experienced business bankers offer valuable insights and advice to help veteran-owned businesses thrive. From cash flow management to strategic planning, their expertise can guide entrepreneurs through the complexities of running a business. This support is crucial for veterans who may be navigating the business world for the first time.
4. Networking Opportunities
Networking opportunities that connect veteran entrepreneurs with business owners, potential clients, and industry experts can unlock new partnerships and growth avenues. Engaging with fellow veterans can lead to collaboration and valuable feedback. Learning how others handle challenges like hiring or cash flow management can offer practical insights and strategies.
Community Impact
Supporting veteran-owned businesses has a ripple effect on the community. These businesses often hire other veterans, creating job opportunities and fostering a sense of camaraderie and support. Who you choose to bank with can make all the difference. Veritex Community Bank values community impact and is committed to helping business owners succeed.
Ben Amaso, business banking relationship manager and Navy veteran states,
“As a veteran myself, I can confidently say that Veritex Community Bank is committed to providing personalized support and tailored financial solutions that empower veteran entrepreneurs to succeed. We understand this community and the bond it shares. To better support our veterans in business, Veritex Community Bank is introducing a veteran networking group in 2025. We are excited to bring this community together as we help them navigate best practices for growing their business.”
With tailored financial solutions, a commitment to community, and a focus on education and networking, Veritex Community Bank is the ideal banking partner for veteran-owned businesses. Choosing Veritex Community Bank means choosing a bank that understands and values the veteran community, making it a smart choice for any veteran entrepreneur looking to grow their business.
Sources: Tvc.texas.gov; Comptroller.texas.gov
