Defense Secretary Ash Carter made waves last month when he announced two new proposals that will dramatically increase the Department of Defense’s flexibility in shaping the structure of our military. If approved, the proposals would allow more civilian workers in high-demands fields to enter the military mid-career, give the military more discretion in how they promote (or don’t promote) current servicemembers, and provide more incentives for soldiers to voluntarily leave the service before retirement. These changes are a radical departure from the military’s current approach to managing its talent, and this increased flexibility is badly needed at a time when the military is trying to adapt to changes on and off the battlefield. However, if enacted, these changes will necessarily disrupt the traditional military career path, and likely result in more servicemembers leaving the military in the middle of their career and looking for work in the private sector.

Research shows that veterans already struggle to find jobs when they leave the military, and if Carter’s proposals are approved, that problem may grow larger. Given these necessary changes to our force structure, the military should equip servicemembers to meet that challenge head-on by preparing them to become entrepreneurs. With the right education and partnerships in place, the DOD can empower servicemembers with the knowledge, skills and resources they need to create their own jobs — and build businesses that will contribute to the economy — when they leave the military. Many veterans possess the critical personality characteristics, leadership traits and technical skills required to be successful entrepreneurs (the hard part of entrepreneurship), but leave the service unprepared to successfully navigate the financial risks and opportunities associated with the pursuit of business ownership.

Many of our government agencies and veteran support organizations have created programs to reduce barriers to entrepreneurship for veterans. The GI Bill, the Small Business Administration’s veteran loan program and its innovative partnership with DOD to offer entrepreneurship training to transitioning veterans through the Boots to Business Program are all positive steps toward helping veterans start their own businesses. While well-intentioned, these agencies and programs do not sufficiently prepare servicemembers to become successful entrepreneurs. The military should incorporate the support from these programs into a larger, more coordinated effort to prepare servicemembers for entrepreneurship upon separation. These efforts should start at the beginning of service and focus on three key areas: greater financial flexibility, more comprehensive financial literacy and the creation of a “transition business plan” for each servicemember.

Greater financial flexibility: Since many veterans leave the service with modest financial assets, they are less prepared to pursue a professional choice that doesn’t offer a steady paycheck. Financial flexibility can be improved not only by increasing savings, but by minimizing house payments and car loans, accumulating paid leave to bridge the financial gap upon separation, exiting from service at a location that maximizes a soldier’s professional and personal network, and even delaying the growth of their family so their partner can support the family through this critical transition. One can achieve financial flexibility only through years of sound financial decision-making with this objective in mind. Today, many veterans lack appreciation for the importance of financial flexibility; we must help them see a longer time horizon, the high probability of their midcareer transition and the long-term impact of today’s financial choices.

Comprehensive financial literacy: Given the pending changes to the military retirement system, the DOD has increased its emphasis on improving financial literacy to prepare servicemembers and veterans to effectively assume responsibility for their retirement. The services have long understood the virtues of financial conservatism by promoting sound budgeting, savings and modest debt to help soldiers avoid financial distress. But financial literacy is currently taught as a tool to manage risk; we should also be teaching servicemembers how to use these tools to build wealth. We must teach them to become business owners by combining their financial knowledge with their savings and the labor skills they will acquire in the military.

Transition business plan: Soldiers acquire valuable skills and benefits representing significant wealth; these assets must be managed in a coordinated fashion to serve as the foundation of a veteran’s “transition business plan.” Servicemembers must be taught how to efficiently marshal all of the resources available to them when they transition to civilian life: the value of their labor, GI Bill benefits, transition assistance support, entrepreneurship training, disability payments, small-business and home loan programs, as well as the personal brand they have created for themselves as a high-performing member of the armed services. Through these programs veterans can gain access to critical skills and business opportunities, and get attractive loans that minimize the amount of required savings to start a business, while also minimizing the risk of failure. Today, many veterans access these programs on an as-needed tactical basis; we must teach them how to strategically assemble these resources in advance to bridge their transition to business ownership.

These skills and resources can’t be quickly acquired during out-processing at the time of departure; they must be developed throughout the active-duty experience. Our military leaders must articulate that preparing servicemembers to become entrepreneurs is a priority, and that the journey begins on day one and is embedded throughout the military experience and community.

While they often have little financial capital or flexibility to start a business, veterans possess the most important conditions for success: skills, leadership, perseverance and discipline. With so many veterans struggling to transition to civilian employment — and likely more on the horizon — the military must empower servicemembers with the knowledge, skills and strategic planning to successfully start and grow their own businesses. Not only does entrepreneurship provide veterans with a compelling way to support themselves and their families when their service is no longer needed, it also promotes the culture and skills required to ensure our military is prepared to meet the challenges of tomorrow. And most importantly, because servicemembers view the military not only as a patriotic duty, but as in investment in their future, empowering them to become entrepreneurs preserves the social contract our nation makes with these soldiers by supporting them on the battlefield and when they return.

Douglas P. McCormick is a former active-duty Army officer, cofounder of HCI Equity and the author of “FAMILY INC: Using Business Principles to Maximize Your Family’s Wealth.” J. Michael Haynie is Syracuse University’s vice chancellor of Veteran and Military Affairs. He also serves as the founding executive director of the Institute for Veterans and Military Families and as the Barnes Professor of Entrepreneurship at the Whitman School of Management.

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