In addition, over half of those who want to be their own boss (52%) say they would be willing to accept at least a fair amount of financial risk to do so. Among “aspiring entrepreneurs,” the risk-tolerant percentage is even higher, at 70 percent of those who are seriously considering starting or buying a business.
The Reasons
Digging further into the survey results reveals that (1) the appeal of being one’s own boss, and (2) having the opportunity to earn more money top the list of reasons why individuals want to become business owners.
Also, four in 10 people say that the desire for a more flexible work schedule is a key reason for wanting their own business. Schedule flexibility is a much more significant driver of entrepreneurial interest for women than men. Fifty-two percent of women who want to start a business list the desire for a more flexible work schedule as one of their main reasons, compared with 38 percent of men who want to start a business.
The Obstacles
While Americans are interested in being their own boss, financial matters remain a barrier for people to overcome when starting or buying an existing business. Aspiring entrepreneurs rate a lack of funding (60%) and concerns about the personal financial risks of going into business (50%) as the biggest challenges they face.
Other concerns cited in the survey were: inflation (33%), needing to learn more about starting or managing a business (33%), lack of confidence that the business would succeed (26%), government regulation (25%), and access to business loans (24%) are also viewed as important challenges by aspiring entrepreneurs.
While the initial capital needed to buy or start a business was the number one barrier mentioned, the office of William Bruce maintains valuable relationships with the top national SBA bank lenders and can usually arrange business acquisition loans for business buyers with only an approximate 15 percent down payment.
In Summary
Small businesses are a key pillar of the U.S. economy and labor market, and entrepreneurs are critical to creating and sustaining economic activity. Fifty percent of of all working Americans are employed by small businesses. Businesses with 20 or fewer employees make up 89 percent of all business entities in the United States.
The importance of the small business component to the American economy cannot be overstated.
For readers considering buying an existing business, here are some additional articles that may be helpful:
How to Find a Good Business For Sale
Here Are the 6 Most Frequently Asked Questions When Buying a Business
Considering Buying a Business of Your Own? What Size and Type is Right for You?
Considering Buying a Small Business? Here’s How to Analyze a Business for Sale
What Are the Sellers’ Discretionary Earnings of a Business?
x x x
