In recent years, we’ve witnessed a troubling trend in the American economy: the disappearance of small businesses. Local shops, service providers, and family-owned operations that have been cornerstones of communities for decades are closing their doors, leaving a void that private equity (PE) firms are quick to fill. But this takeover comes at a steep cost—both financially and culturally.

PE firms, driven by the pursuit of profits, are buying up small businesses across the country, often with the goal of maximizing short-term revenue at the expense of long-term community value. From plumbing services to HVAC companies, no industry is immune. Once in control, these firms frequently raise prices, cut services, and focus solely on generating a return on investment. While these strategies benefit shareholders, they leave consumers with fewer choices, higher costs, and lower quality services.

The Rise of Private Equity in Small Business

Over the past decade, private equity firms have taken a keen interest in small businesses, particularly in essential service sectors like home repair, healthcare, and education. These businesses often provide steady, reliable revenue streams, which make them attractive targets. Once acquired, the private equity model tends to prioritize immediate profit increases, often through cost-cutting measures and price hikes. For consumers, this can mean paying significantly more for everyday services like HVAC repair, plumbing, or even routine medical care.

For example, when a PE firm buys a plumbing company, the new owners may raise prices to maximize short-term profits, leaving customers with inflated costs for essential services. These businesses may also reduce investments in quality or local job creation, contributing to a broader decline in community-based economic health.

The result? A homogenized, corporate-controlled landscape where local businesses are no longer owned and operated by members of the community, but by far-off investors with no personal stake in the town or region. What’s more, as these small businesses vanish, the skills and knowledge required to run them are lost, making it even harder for local entrepreneurs to start anew.

Keeping Small Businesses Thriving

The erosion of small business ownership is more than an economic issue; it’s a cultural one. Small businesses bring character, innovation, and competition to local economies. They sponsor youth sports leagues, donate to local charities, and help keep wealth circulating within the community. Without them, towns and cities lose much of their uniqueness, and consumers are left with fewer choices.

So how do we keep small businesses thriving in an era of rapid consolidation and rising costs? One solution lies in selling these businesses to qualified veterans. Veterans bring a unique set of skills to the table—leadership, discipline, and a sense of responsibility—that make them ideal candidates for small business ownership.

Veterans as Small Business Owners: A Winning Combination

Veterans possess a wealth of experience that directly translates to business ownership. They are used to high-pressure environments, have strong leadership abilities, and understand the value of teamwork. Moreover, veteran-owned businesses tend to outperform their non-veteran counterparts in terms of revenue growth and employee retention.

For veterans, owning a small business isn’t just a career opportunity; it’s a path to reintegration into civilian life. Many veterans struggle to find meaningful employment after their service, and owning a business provides them with a sense of purpose and control over their future. It allows them to use their skills in a productive way, contribute to their communities, and build a stable future for their families.

Studies have shown that veteran-owned businesses create jobs and boost local economies. According to the U.S. Small Business Administration, veteran-owned businesses employ more than 5 million people and generate over $1 trillion in annual revenue. By transitioning small businesses to veteran owners, we can help preserve local economies while empowering those who have served our country.

How Owners in Honor Helps

This is where Owners in Honor steps in. Our mission is to guide veterans through the Entrepreneurship Through Acquisition (ETA) process, helping them acquire small businesses and become successful owners. We provide mentorship, education, and financial assistance to veterans who are interested in buying businesses, ensuring they have the tools and support they need to succeed.

By connecting veterans with business owners looking to sell, we help preserve small businesses and keep them thriving in their local communities. Our program not only benefits the veterans who participate, but it also ensures that these businesses continue to contribute to their local economies for years to come.

Join Us in Supporting Veterans and Small Businesses

We’re excited to announce a special event in New York City on November 6th, where we’ll share more about our mission and how you can get involved. This event is a great opportunity to meet like-minded individuals who are passionate about supporting both veterans and small businesses.

If you’re interested in attending, please reach out to Tiffini@ownersinhonor.org. We’d love to see you there and discuss how you can be a part of this important cause.

Together, we can help ensure that small businesses continue to thrive in America, while providing veterans with the opportunity to build meaningful careers and strengthen their communities.

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