From Service to Start-Up: The Honorable James Rodriguez on the Future of Veteran Entrepreneurship

“The uncertainty is real — but uncertainty is not new to you.”
— Hon. James D. Rodriguez

In honor of National Veterans Small Business Week, Military.com was fortunate to sit down with the Honorable James D. Rodriguez, the former Assistant Secretary for the U.S. Department of Labor’s Veterans’ Employment and Training Service (DOL VETS). A Marine Corps veteran and seasoned federal executive, Rodriguez led the nation’s primary programs supporting veterans, transitioning service members, and military spouses as they pursue meaningful civilian careers—including those who choose the path of entrepreneurship. With decades of experience shaping federal policy across the Department of Labor and Department of Defense, he brings a unique perspective on how veterans can turn their military experience into successful business ownership, and what the government must do to better support them.

When James D. Rodriguez talks about veteran entrepreneurship, he speaks with the authority of someone who has seen the process from every angle: from the vantage point of the policymaker trying to shape the system, to the Marine veteran who understands how hard the first years out of uniform can be. His career, spanning senior roles across DOL, DoD, and various White House task forces, has been anchored in a simple mission: make sure veterans have the tools, the access, and the support they need to succeed long after they hang up the uniform.

During our conversation, Rodriguez offered a clear assessment of what veteran entrepreneurs are facing today, the systemic barriers that still stand in their way, and the strengths that position them to build and lead successful companies.

When Shutdowns Hit, Veteran-Owned Businesses Feel the Shock First

With the federal government lurching toward repeated shutdown threats, Rodriguez says it’s not abstract political theater—veterans feel the consequences immediately, especially those running small companies.

“Veteran-owned firms that rely on government contracts often see work paused, invoices unpaid, and new awards frozen,” he explains. “Even if funding is technically authorized, the contract officers who process the work may be furloughed.”

That creates a financial choke point for small firms that are already operating with thin margins. Disrupted cash flow is not an inconvenience—it’s an existential threat. Rodriguez notes that most small businesses cannot absorb long-term payment delays without sacrificing payroll, hiring, or growth opportunities.

Shutdowns also hit the federal support system itself. Loan approvals slow or freeze. VA Small Business Certifications stall. Counseling and training pipelines pause. “New businesses are often the most impacted,” Rodriguez adds, “because they don’t have the financial runway to survive extended delays.”

Why the First Year Out of Uniform Is the Most Fragile

Rodriguez has spent years studying where transitioning service members struggle most. That first year after separation is always one of the most vulnerable—and for aspiring entrepreneurs, it’s a pressure-cooker.

While core veteran benefits continue during a shutdown, many administrative functions slow down or stop entirely: records requests, forms, certifications, and compliance paperwork. For a new business owner, those aren’t bureaucratic niceties—they are lifelines.

A vet trying to secure an SBA-backed loan or finalize federal contracting paperwork can suddenly watch their entire business plan grind to a halt. “A shutdown interrupts revenue and access at exactly the points where veteran businesses are structurally most dependent on government systems—contracting, capital, and federal access,” Rodriguez says.

It’s why he believes entrepreneurial training should start well before service members separate, not months afterward.

DOL + SBA: A Partnership with Room to Grow

Under Rodriguez’s leadership, DOL VETS strengthened its coordination with the Small Business Administration, creating a more connected path between employment readiness and business readiness.

“The core of the coordination was about moving service members from employment readiness to business ownership readiness,” he explains.

This two-way referral system matters:

• Transitioning service members expressing interest in starting a business are routed to SBA resources like Boots to Business or Veterans Business Outreach Centers (VBOCs).
• VBOC counselors send veterans back to DOL programs when additional training, apprenticeships, or employment support would be more beneficial.

These shared networks work well, he says, but the system is still too fragmented for the average veteran to navigate easily.

The Real Barriers Are Structural, Not Personal

Rodriguez is the first to emphasize that veterans want to start businesses—and they have the drive, work ethic, and mission focus to succeed. What holds them back are structural inefficiencies baked into the federal process.

The most persistent barrier is capital. Many veterans transition with limited credit histories due to living on base, frequent moves, or limited savings. When those service members apply for SBA loans, lenders often view them as high-risk—not because of their skills or potential, but because of gaps in civilian financial records.

“The inability to secure lines of credit for early cash flow can delay or stop startup operations,” Rodriguez notes. “It’s a structural reality, not a reflection of a veteran’s capability.”

The second major constraint is the fragmentation of the federal system. A veteran entrepreneur must move through DoD, DOL, VA, and SBA programs—each with different portals, timelines, and requirements.

Rodriguez’s solution is ambitious: a single, unified intake and navigation system that would allow veterans to begin their entrepreneurial journey in one place and receive seamless support across all agencies.

“The programs are strong; the pathway is fragmented,” he says. “Integration is what’s missing.”

What Veterans Bring to the Entrepreneurial Table

Rodriguez lights up when discussing the strengths veterans carry with them into the business world. He has seen it time and time again—traits forged over years of service become powerful entrepreneurial advantages:

• A strong sense of purpose
• Adaptability under pressure
• A mission-first mindset
• Leadership in uncertain environments
• Commitment to team and community

“Veterans bring informed ideals and strong methodologies that align closely with what entrepreneurship requires,” he says. Their unconventional training—stress inoculation, problem-solving, improvisation—often gives them an edge in volatile markets.

And increasingly, veteran-owned businesses are driven by impact as much as income. Many founders hire veterans, support military families, or solve problems inside the federal government.

Purpose sustains them. And purpose, Rodriguez argues, is a competitive advantage.

Encouragement for Veterans Starting a Business Today

With economic uncertainty, political volatility, and shifting markets, many veterans wonder if the timing is right to start a company. Rodriguez’s answer is unequivocal:

“The uncertainty is real—but uncertainty is not new to you.” Veterans have spent their careers operating in unpredictable, resource-constrained environments. They know how to adapt, reassess, and continue moving forward despite obstacles.

“You don’t need to have all the answers from the start,” he says. “You just need to prove one thing at a time—your offering, your customer, your price, and your ability to deliver.” And he emphasizes one final truth: mentorship matters. In the military, success is never an individual act. The same is true in entrepreneurship.

Why DOL VETS Matters

For veterans unfamiliar with DOL VETS, Rodriguez offers a simple explanation: it is the federal government’s central hub for helping veterans succeed in the civilian workforce, whether through employment, apprenticeships, or business ownership.

The agency:

• Runs the Transition Assistance Program (TAP) Employment Track
• Supports veterans through American Job Centers nationwide
• Funds DVOP and LVER specialists dedicated to veteran employment
• Coordinates closely with SBA to support entrepreneurship

Economic stability, he stresses, is the foundation of long-term success—no matter which path a veteran chooses.

A Clear Way Forward

As National Veterans Small Business Week highlights the long-term economic impact veterans make across the country, Rodriguez remains optimistic. The system is imperfect, but the talent within the veteran community is undeniable.

“Your military background didn’t just prepare you to follow a mission—it prepared you to create stability in unstable environments.”

And that, he says, is the essence of entrepreneurship.