Here’s what’s holding Americans back from starting businesses
Approximately three in five Americans (61%) have had more than one idea for starting a business, but an overwhelming majority of those people (92%) didn’t follow through with turning their idea into reality.
So says a Zapier-commissioned Harris Poll survey of more than 2,000 Americans, among whom 1,228 have had an idea for starting a business. Zapier is an automation consulting company.
The survey also investigated why would-be entrepreneurs aren’t following through on their visions. Among the most common reasons were not enough funding, no access to benefits such as health care, and a lack of access to and knowledge about the kinds of tools that make running a business possible.
For example, a majority of respondents hadn’t heard of no-code software. While the tools for building things have never been more abundant, this suggests that knowledge isn’t spreading quickly enough to spur mass entrepreneurship.
Lack of funding is by far the most common reason Americans gave for not starting a business: 63% said that’s what stopped them from pursuing it.
However, money isn’t the only thing holding people back. Here are the other barriers potential entrepreneurs said stopped them from starting a business:
They didn’t know how to get started: 39%
They were worried about failing: 33%
They didn’t have access to business tools: 29%
They weren’t sure how to work with the tools/technology needed to run a business: 26%
They didn’t have enough time for a new venture: 25%
They didn’t have support from friends, family, and/or peers: 23%
They didn’t have access to group plan benefits: 22%
Here is some cautionary advice to career builders contemplating making the move from working for others to starting their own businesses. The consulting company researchers asked would-be entrepreneurs what they would need to change in order for that to happen. Here are their answers:
Nearly three-quarters of Americans who had an idea for a business but didn’t start one (74%) say they would be more likely to start a business this year if they had access to funding.
Access to group benefits. Roughly half of would-be entrepreneurs (49%) said they’d be more likely to start a business if they had access to group plan benefits currently tied to full-time employment (e.g., health insurance, 401(k) matching).
Access to business tools. Nearly half of would-be entrepreneurs (47%) would be more likely to start a business in 2021 if they had better access to business tools.
Knowledge about business tools. Nearly half of would-be entrepreneurs (46%) would be more likely to start a business in 2021 if they better understood how to work with the tools needed to run a business.
While communities, institutions, and governments are all involved in these kinds of decisions, the consulting company feels businesses — and tech companies in particular — also have a role to play.
Lack of funding is by far the most common reason Americans gave for not starting a business: 63% said that’s what stopped them from pursuing it.