Nearly one third of Americans thought about starting their own business within the past year, according to a new LendingTree survey. But out of the 3,387 people surveyed, nearly half of the aspiring entrepreneurs have not taken any steps toward business ownership. While numerous reasons and hurdles stand in the way, access to capital is the number one reason for not acting on entrepreneurial dreams.
Upon seeing the survey results about starting a business, LendingTree did a second survey of 1,067 Americans in conjunction with Qualtrics, seeking to gauge attitudes toward business ownership and the challenges relating to access to capital. The results showed that one third would consider a Small Business Association (SBA) loan to finance their startup, while one in four believe they will not need to borrow to undertake a startup.
Inertia was identified as another big hurdle, with 44.6% saying they haven’t taken any of the steps toward starting, such as working on the business part-time, registering a company, or applying for a business loan. However, the spirit behind a portion of aspiring entrepreneurs is strong, with 20% saying they’d forgo an income to get their business off the ground, with 19% prepared to risk $25,000 or more.
“Of the many hats small business owners wear, CFO is perhaps the most critical. Managing capital requires you to build and maintain relationships with multiple lenders; don't put all your eggs in one basket,” advised Hunter Stunzi, SVP small business at LendingTree in a press statement. “While one lender may take months to approve you for a large equipment loan, an online lender may approve and fund you in the same day. Both lenders should have a place on your balance sheet.”