This study examines the causes and consequences of involvement in commercial activities by armed forces with regards to coup risk, development and regime transitions. Utilizing an original dataset on military-owned business enterprises, this dissertation examines the links between armed forces control of business enterprises and finds that military controlled enterprises arise out of strategic resource allocation by leaders to minimize coup risk, and that these economic institutions do indeed work to reduce coup risk, though the effect is mediated by the regime type and wealth of a state.