Published September 12, 2019
WASHINGTON, Sept. 12, 2019 /PRNewswire/ -- New entrepreneurs launch their businesses from a passion for their product or service, or a desire to be their own boss, and have significant experience (11.5 years, on average) in their industries, according to new survey data from SCORE, mentors to America's small businesses.
SCORE, the nation's largest network of volunteer, expert business mentors, has published original survey data on the unique challenges that U.S. small business startups face in their critical first year. Research shows that new entrepreneurs are most likely to launch their businesses based on a passion for their product or service, or a desire to be their own boss, and they have significant experience (11.5 years, on average) in their respective industries.
"In this fourth edition of the Megaphone of Main Street data report series, we chose to focus on startups (small businesses in their first year of operations) because the state of new businesses is generally considered a significant indicator of economic health and innovation," said Bridget Weston, Acting CEO of SCORE. "Data shows that the number of new businesses started has been steadily recovering following the 2008 recession; but, the employment created by these new businesses has not seen comparable rates of recovery. Our research suggests that challenges in finding the right target market, finding financing and hiring the right team could explain this gap."
Key findings of section one include:
Few entrepreneurs (just 15%) start their businesses due to unemployment or underemployment from a 9-5 job.
- 40% of new entrepreneurs got started because of a passion for their product or service.
- 30% wanted to be their own boss.
- 15% saw a gap in the marketplace that they wanted to fill.
New entrepreneurs seek full self-employment.
- 68% of entrepreneurs started their business with the intention of that business serving as the sole, primary income for the owner.
New entrepreneurs don't start their businesses on a whim.
- Survey respondents had an average of 11.5 years of experience in their area of industry.
New business owners take comfort in being prepared.
- 66% of entrepreneurs rated the support of family and friends as their strongest source of support.
- 43% rated having a business plan as their strongest source of support.
- 43% reported having a mentor as their strongest source of support.
New business owners rely on networking-based marketing tactics to reach customers.
- Reaching out to a personal or professional network had the highest perceived marketing success rate (65%).
- Followed by speaking at events (60% success rate), and
- Formal networking groups (54% success rate).
About The Megaphone of Main Street
This report constitutes the fourth installment of SCORE's Megaphone of Main Street data report series, which presents original, statistically-significant survey data on the American small business landscape. Survey data was collected from 1,000 new small business owners in all 50 states and Washington, D.C., representing new small businesses of varied sizes in a broad coverage of industries. Subsequent sections of this data report focus on the challenges that new entrepreneurs face in their first year of operations, including finding financing and hiring the right team.
Since 1964, SCORE has helped more than 11 million aspiring entrepreneurs. Each year, SCORE's 11,000 volunteer business experts provide free small business mentoring sessions, workshops and educational services to clients in 300 chapters nationwide. In 2018, SCORE volunteers helped to create 32,387 new businesses and 103,300 non-owner jobs.
For more information about starting or operating a small business, or on volunteering with SCORE, visit SCORE at www.score.org. Follow @SCOREMentors on Facebook, Instagram and Twitter for the latest small business news and updates.
Funded in part through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, conclusions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.