The Propensity of Veteran-Owned Firms to Provide Employee Benefit Programs: A Test of Military Imprinting Versus Business Pragmatism

Do military veterans carry a unique cultural ethos into their entrepreneurial ventures? One theory, military imprinting, suggests their culture of support leads to more generous employee benefits. An alternative view credits business pragmatism, where market constraints dictate such decisions. This study tests these competing theories using the Annual Survey of Entrepreneurs (ASE) (N ≈ 139,000). After controlling for numerous factors, we found a nuanced outcome. Contrary to the imprinting hypothesis, veteran- owned firms are no more likely to offer costly benefits, such as health insurance, and are less likely to offer retirement plans. However, they are significantly more likely to provide benefits aligned with professional development and work-life balance, such as tuition assistance and paid leave. These findings suggest military imprinting selectively shapes entrepreneurial behavior, prioritizing specific values from military life. Veterans create “good jobs,” but in a manner distinct from their non-veteran peers.