Understanding the Military Spouse Entrepreneurship Act

Understanding the Military Spouse Entrepreneurship Act

May 01, 2024

In 2023, two Senators, Amy Klobuchar (D-MN) and Thom Tillis (R-NC) introduced legislation aimed at supporting military spouses with an entrepreneurial spirit called the Military Spouse Entrepreneurship Act. The purpose is to address the economic needs and visions of military spouses who often sacrifice in silence. Despite certain benefits, it is not easy being a military spouse, and the burden they carry is unrecognizable to most civilians. Many endure anxiety and worry when their spouse gets put into harm’s way by being deployed to a combat zone. They are separated from extended periods of time and often carry the load as a single parent while finding it nearly impossible to set down long-standing roots, changing duty locations every two to four years.

A need for this bill to get passed

According to the Center for American Entrepreneurship, 92% of military spouses are women. Amongst this population, military families disclose that an estimated quarter of military spouses are unemployed, and up to 60% suffer from underemployment. That number is staggering on its own and becomes highly concerning. It is revealed to be seven times the national average.

Unemployment and underemployment experienced by spouses, along with the fact that around 80% of military spouses are younger than age 40, is a serious concern for the military. Spouses experiencing career struggles could build up resentment and frustration with the military lifestyle. Despite their patriotism and unwavering pride in their spouse serving the nation, the dissatisfaction of military spouses over time could be detrimental when the military is pushing for higher retention rates to help balance out low recruiting efforts. Military spouse satisfaction and their experience, along with finances, are the main driving force in whether a service member continues with the military or pursues a civilian lifestyle.

Senator Klobuchar on Sentoar.gov explained the importance of the support, “Military spouses make huge sacrifices to support our troops, and we must work to support their unique economic needs. Our bipartisan legislation would help ensure that military spouses have the right tools and training to establish their own small businesses and become entrepreneurs.”

Long-term growth

A significant aspect of this bill is the desire for a long-term outlook. Two critical factors that focus on development over time include:

· Training

This new act provides military spouses with much-needed training on launching and managing a business over time. Studies have shown that at least a third of all startups fail by their second year, and half are defunct by their fifth. The risk of failing with your new business is a real factor you must consider.

· Continuous development

Administrators are expected to conduct a survey at specific military stations to identify any challenges these entrepreneurs face and help military spouses make modifications in creating, managing, and growing a small business. The data from the survey will be sent to the Senate Small Business Committees and the House of Representatives within 180 days for further analysis.

Consult a Financial Professional

Even with governmental assistance and entrepreneurial training programs, starting a business is a huge life step requiring attention to detail, regular reviews of progress, recognizing areas for improvement, and understanding the financial aspects of the business and how your decisions could impact your company and its development and even survival. Consider consulting a financial professional before making any financial decisions, especially ones driven by emotion. A financial professional can help you analyze your options pragmatically without letting the emotional factor steer you in the wrong direction.

 


Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

Sources:

The Military Spouse Entrepreneurship Act Will Strengthen America’s Military Readiness | Center for American Entrepreneurship (startupsusa.org)

Klobuchar, Tillis Introduce Bipartisan Legislation to Support Military Spouse Entrepreneurship - News Releases - U.S. Senator Amy Klobuchar (senate.gov)

This article was prepared by LPL Marketing Solutions

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