Dr. Jeffrey R. Cornwall
Several new studies of small business owners today show that tough times continue for entrepreneurs.
Two surveys released yesterday offer some disturbing results. Wave Accounting, a cloud based accounting software company for micro and SMB’s, released a survey of their 250,000 micro and SMB customers, and Pepperdine University’s Graziadio School of Business and Management joined with Dun & Bradstreet Credibility in a survey released yesterday of 6,000 small business owners.
The Wave survey reinforced what a lot of us suspected. The number of accidental entrepreneurs, those who started businesses after finding themselves unemployed and unable to find work, has doubled over the rate found before the recession began (from 9% to 18%).
And the role that government incentives played in their decision to launch their business? Only 2% of respondents in the Wave survey said government incentives fed the decision to go into business for themselves. And in the Pepperdine survey, only 1% said the highly publicized crowdfunding JOBS Act would have any impact on their ability to raise needed funding. So don’t let politicians fool you into believing that their attempts to steer and guide the economy have an impact!
And speaking of financing, only 41% of the businesses looking to raise capital were successful.
A shocking figure from the Wave survey relates to how well the business owners were able to meet their basic needs through their business. An incredible 52% of American small business owners can’t put food on the table through the earnings from their business over the past twelve months.
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