According to a recent Gallup survey, small business owners are more optimistic than ever. And with good reason; the survival rate of small businesses that survive past their fifth year is on the rise, climbing from 43% in 2012 to over 48% in 2016.
To find out more about this bold, new-generation of entrepreneurs and what makes them tick, Guidant Financial surveyed more than 1,000 of their small business owner clients and their findings were published on Entrepreneur.com.
Unpacking this infographic reveals some interesting trends that provide insight into why small businesses today are not only surviving, but thriving as well:
- ‘Opportunity entrepreneurship’ breeds empowerment. 8/10 entrepreneurs started up because they saw an opportunity rather than being forced into it (read: laid off).
- Baby Boomers were born to thrive in business ownership. They represent the largest group of business owners (just under half of all those surveyed).
- Small business owners have a lot to smile about. Those on Main Street are happier than their peers on Wall Street. This high level of happiness stems from the satisfaction of pursuing their passions.
- Small business owners are getting more creative when it comes to funding–especially traditionally underserved groups, such as racial minorities. Alternative funding options like 401(k)s saw a 35% increase in 2016.
- Education is a bonus but not a requirement. 82% of respondents have an associate’s, bachelor’s or master’s degree. 15% launched a business with a high school diploma.
- Certain industries experienced more growth than others last year such as food & beverage, health & fitness and business services.
- Franchising is becoming a popular gateway to business ownership. 40% of those surveyed entered the world of small business ownership by purchasing a franchise.
- Starting a business doesn’t have to break the bank. While the price tag of some businesses is up to $5 million, many purchased a business on a much smaller budget–and almost 30% of respondents managed to acquire a business for less than $100,000.
- Expansion is top-of-mind for most business owners. Despite concerns over lack of capital funding, most small business owners (48%) hope to expand this year.
Have some insight to share? Let us know in the comments below.
about the author
Amanda is a content editor at FreshBooks, writing and producing blog content to help small business owners achieve their goals and enjoy (yes, actually enjoy!) running their business. Amanda’s background in education and customer support makes her a natural communicator who loves empowering others to succeed. When she’s not writing and editing content, Amanda takes her dog, Jonny, on adventures searching for the best coleslaw in Toronto.