U.S. Veteran-Owned and -Led Businesses Cautious on Economic Outlook, New TD Bank Survey Shows

Despite caution, survey shows optimism exists related to customer acquisition, access to capital and talent, and cost efficiencies

As the small business world continues to navigate rapid digital transformation and related shifts in customer expectations, veteran-owned and -led businesses are cautiously optimistic about their business growth over the next 12 months, according to the results of a new survey released today by TD Bank on the occasion National Veterans Small Business Week.

More than seventy percent (71%) of veteran-owned and -led businesses list economic conditions, like inflation and high interest rates, as their primary concern related to their business growth. Additional concerns include attracting customers (48%) and competition from other businesses (41%).

The economic environment continues to pose challenges for veteran-owned and -led businesses’ performance, with just one-third (34%) expecting improved performance over the next twelve months. Instead, nearly half (49%) expect to merely meet their goals in the same timeframe. Notably, only 29% of veteran-owned and -led businesses indicate plans to increase their staffing levels, showing a hesitancy to expand operations amid uncertainty.

Ready, Aim, Grow!

Despite a cautious outlook for service expansion and hiring plans, veteran-owned and -led businesses are eager to pursue areas of opportunity, including:

• Customer Acquisition: While veteran-owned and -led businesses continue to grapple with the effects of economic fluctuations, 77% note new customers as a key opportunity for their business.
• Access to Capital and Talent: As the economy continues to stabilize with a potential ‘soft landing’ on the horizon, just one fifth of veteran-owned and -led businesses feel disadvantaged when considering access to capital (21%) or professional networks (21%).
• Cost Savings/Efficiencies Initiatives: Veteran-owned and -led businesses continue to prioritize financial stability as they navigate market volatility, with more than half (52%) citing cost efficiency initiatives as an opportunity for their company in the next twelve months.

Additionally, banking innovation is particularly important, as the majority of veteran-owned and -led businesses (84%) believe their primary bank offers cutting-edge features and products. When veteran-owned and -led businesses consider choosing a bank partner, more than two-thirds (68%) prioritize both low banking fees and online banking features as top determining factors.

“Overall, the survey findings reveal veterans' positive sentiment about the future of small businesses, including opportunities around new technologies and customer growth,” said Andy Bregenzer, Co-Head of Commercial Banking, TD Bank. “There are many resources designed to support veterans' financial wellbeing, and banks are here to provide guidance and expert recommendations on the resources and solutions that will help veterans successfully pursue their business goals and achieve their aspirations."

Those surveyed show a high level of satisfaction when it comes to their banking relationships. Notably, an overwhelming 96% report their primary bank effectively meets their business needs or goes beyond to support them. More than half of veteran-owned and -led businesses (55%) maintain only one banking relationship, and nearly two thirds (62%) consider their banking service to be excellent.

Survey Methodology

This report presents the findings of a survey conducted by Wakefield Research among 100 veteran business leaders in leadership roles at companies with annual revenues of $100K - $2B each, along with 200 individuals who make up a representative sample of business leaders in the U.S. The online survey was conducted between July 29^th and August 13^th, 2024. Data has been weighted.

Veteran business leaders businesses are defined as owners or those in the c-suite.

About Wakefield Research

Wakefield Research is a leading, independent provider of quantitative, qualitative, and hybrid market research for thought leadership and strategic insights. Wakefield Research is a partner to the world’s leading brands and agencies, including 50 of the Fortune 100. We conduct research in nearly 100 countries and our surveys appear regularly in top-tier media. Learn more at www.wakefieldresearch.com.

About TD Bank, America's Most Convenient Bank^®

TD Bank, America's Most Convenient Bank, is one of the 10 largest banks in the U.S. by assets, providing over 10 million customers with a full range of retail, small business and commercial banking products and services at more than 1,100 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. In addition, TD Auto Finance, a division of TD Bank, N.A., offers vehicle financing and dealer commercial services. TD Bank and its subsidiaries also offer customized private banking and wealth management services through TD Wealth^®. TD Bank is headquartered in Cherry Hill, N.J. To learn more, visit www.td.com/us. Find TD Bank on Facebook at www.facebook.com/TDBank and on Instagram at www.instagram.com/TDBank_US/.

TD Bank is a subsidiary of The Toronto-Dominion Bank, a top 10 North American bank. The Toronto-Dominion Bank trades on the New York and Toronto stock exchanges under the ticker symbol "TD". To learn more, visit www.td.com/us.

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