The £5m “Be The Boss” campaign, to be run by the Royal British Legion, will provide ex-service personnel with loans and grants to assist with the costs of starting and growing a business.
“In my time at Defence, I’ve been inspired by the talent, capability and can-do attitude of the armed forces,” said business minister Lord Drayson.
“Those are exactly the qualities you need in business too, but ex-service personnel are under-represented when it comes to startups and self-emloyment.”
The Royal British Legion will also increase the information an advice available to those looking to set up a business, including matching to mentors to provide assistance to those in the early stage of their business career.
“We’ll draw upon our extensive resettlement experience to ensure that these funds are used to equip service leavers to start up small businesses.”
Ex-service personnel, who have been discharged since October 2001, will be able to apply for a loan of up to £30,000 and grants of up to £7,500 through the scheme.