TYSONS, Va., –What are the best cities in the U.S. for veterans who are also entrepreneurs? A new study offers some answers.
The PenFed Foundation for Military Heroes, a national nonprofit organization dedicated to supporting veterans in their transition from service to success in civilian life, has released the findings of its annual study on the top U.S. cities for veteran entrepreneurs. The Foundation noted it offers a Veteran Entrepreneur Program, which is designed to equip veteran and military spouse entrepreneurs with the tools to grow their network and scale their businesses.
The study, conducted in partnership with Polco and the National Research Center (NRC), found Washington D.C. claimed the top spot as the best city for veterans to start a business. Raleigh, N.C. took second place, and Tampa made major improvements, moving from 13th to third place, according to the PenFed foundation.
Each metropolitan area was measured by livability, support for veterans, economic growth, and ability to start a business. The study also ranked the top 20 small-sized cities for veteran entrepreneurs, highlighting opportunities for success in both big cities and smaller markets, the foundation said.
‘Exceptional Entpreneurs’
“Our nation’s veterans bring leadership, discipline, and an unwavering commitment to every challenge they take on,” Andrea McCarren, president of the PenFed Foundation for Military Heroes, said in a statement. “Those same qualities make them exceptional entrepreneurs. This study shines a spotlight on the cities that are creating real opportunities for veterans to thrive as business owners.”
In addition to the top 20 cities for veteran entrepreneurs, the study also identified the top 20 small cities, including:
- Cheyenne, WY
- Durham-Chapel Hill, NC
- Sioux Falls, SD-MN
- Rapid City, SD
- Columbia, MO
- Grand Island, NE
- Colorado Springs, CO
- Omaha, NE-IA
- Fargo, ND-MN
- Fayetteville, NC
- Cape Girardeau, MO-IL
- Lincoln, NE
- Madison, WI
- Lexington-Fayette, KY
- Casper, WY
- Boise City, ID
- Portland-South Portland, ME
- Abilene, TX
- Grand Forks, ND-MN
- Asheville, NC
About the Rankings
The PenFed Foundations said the rankings were developed using data from more than 30 publicly available sources, including government and nonprofit databases. A total of 53 quantitative indicators were applied to assess the entrepreneurial environments for veteran entrepreneurs across 387 metropolitan statistical areas.
About the Program
Since 2018, the Veteran Entrepreneur Program has helped over 120 veteran and military spouse founders grow and scale their businesses through mentorship, media training, and access to capital, through its accelerator program in Bentonville, Ark. and Tysons, Va., according to the foundation.
The accelerator program will expand to San Antonio and Pittsburg in 2026. The foundation will also launch an Incubator program for early and idea-stage veteran or military spouse founded businesses focused on validating, shaping, and communicating business concepts into testable, launch-ready models.
The program will launch in five geographic locations in 2026 including Raleigh, NC, Pittsburgh, Pa., Tysons, Va, New York, New York and Boston, Mass.
The PenFed Foundation for Military Heroes said it covers all costs and takes no equity in participating companies.
