Missouri exceeds the national average for revenue earned by veteran-owned businesses as well as the prevalence of these businesses.
A business is considered veteran-owned if a military veteran owns 51% or more of its stock or equity.
Luke Dietterle, University of Missouri Extension specialist, released a report in October detailing the state of veterans in Missouri’s economy. It showed veteran-owned firms generate 2.3% of the state's business revenue, which is above the national average of 1.8%.
“The veterans in Missouri that are business owners tend to punch above their weight a little bit,” Dietterle said.
Although Oklahoma, Arkansas and Nebraska have higher densities of veteran-owned businesses, Missouri’s businesses generate higher shares of the state’s total revenue.
Veterans make significant contributions in several counties' local economies. Sales attributed to veteran-owned businesses in Reynolds, Iron and Dent counties account for more than a quarter of the overall sales in those places.
Veterans are most represented in the arts, entertainment and recreation, with 8% of Missouri firms in this sector being veteran-owned. Wholesale trade follows close behind with 7% of firms.
The share of industry revenue generated by veteran-owned firms was highest in mining, quarry and oil and gas extraction, at 22%. Transportation and warehousing followed, with 13% of revenue attributable to veteran-owned firms.
Despite the success many veterans find in business, they still face significant barriers in the transition to civilian life.
“You're not really going to have a credit history,” Dietterle said. “You're not really going to have sufficient income to serve as collateral for a loan. These folks are just leaving the service, and they just haven't had those experiences. They haven't been able to build that record of financial responsibility.”
This story was originally published by Missouri Business Alert, a fellow member of the KC Media Collective.
