Study: Business owners like their work but face struggles
It takes a certain type of person to be a small business owner.
According to the University of Phoenix, that person is independent, flexible, proud to be a business owner and willing to take on the many challenges to succeeding.
The university’s School of Business surveyed 1,000 small business owners across the country to get a closer look at how they are faring.
The biggest finding: 96 percent said were glad they decided to become business owners.
“I think it’s a testament that people are out there starting a business to follow their dreams,” said Lena Rodriguez, School of Business program dean. “That’s great for Phoenix, Arizona and the country at large” because small businesses contribute to the economy, she said.
Following a dream, however, doesn’t guarantee success.
The study, “The Entrepreneurial Experience: Challenges, Rewards and Surprises of Running a Business,” found that 39 percent of respondents said their current business had come close to failing and 13 percent said they had previously owned a business that had failed.
The major reasons: low sales and being under-capitalized, said Rodriguez, who teaches entrepreneurial courses and is based in Phoenix.
In the study, respondents said the biggest challenges facing them are:
» Attracting and retaining clients (38 percent).
» Remaining financially solvent (32 percent).
» Expanding or diversifying their business (22 percent).
» Working with difficult customers/clients: (18 percent).
» Differentiating their company from competition (16 percent.) Other results of the study:
» Small business owners started or acquired their first business at an average age of 35 1⁄2
» 62 percent say being a small business owner or entrepreneur takes more work than they expected.
» One in five started their businesses while they were in an entry level or junior position working for someone else.
The University of Phoenix School of Business, which offers associate, bachelor’s and master’s degree programs, has seen increased interest in entrepreneurial courses, Rodriguez said. It is working with a group of business owners to develop new courses for small business owners and entrepreneurs, she said.