The Be the Boss scheme was set up with £5 million of funding from BIS and is run by The Royal British Legion. There are 1,420 people currently engaged in the scheme, with 2,905 people having entered the programme since it began.
So far 88 businesses ranging from fitness centres, locksmiths and plumbers have received funding and grants. The scheme provides armed forces service leavers with loans and grants to help with the costs of starting and growing a business once they have returned to civilian life. It is also able to give people support, advice and access to business mentors who can give them the expert advice they need.
Business and enterprise minister Mark Prisk said: "There is a great entrepreneurial spirit among our armed forces veterans and the Government is keen to help them develop and grow their business expertise. They have the perfect attributes with great desire and a can-do attitude that is exactly the kind of commitment needed when starting and growing your own business.
"I have been inspired by many of the success stories that the scheme has delivered over its first two years. I am delighted that The Royal British Legion has committed their long term investment in Be the Boss and will be taking it forward to new levels of success in the future."
All ex-service personnel are able to apply for mixed funding of a 25% grant and 75% loan of up to £7,500 for start-up businesses and £30,000 for existing businesses that want to grow.
Chris Simpkins, director general at The Royal British Legion, said: "The Be the Boss scheme has been a tremendous success in its first two years with a unique onus on equipping our nation's Armed Forces service leavers with the right tools required for business start-ups.
"The Legion is the only Armed Forces charity providing this particular funding, sound business advice, mentoring and future financial forecasts and we hope to see many more business successes in the coming years."
Minister for defence personnel, Welfare and Veterans Andrew Robathan said: "I am delighted to see that 3,000 former Service personnel have benefited from Be the Boss. Not only has it helped them make a successful transition into civilian life but they are making use of the wide range of skills they obtained during their career with the Armed Forces. I hope the success of the scheme inspires any other potential entrepreneurs amongst our former Service personnel to set up their own business."