Tags: Gallup | entrepreneur | business | economy

Gallup: 25 Percent of Prospective Entrepreneurs Decline to Take Plunge

By    |   Wednesday, 25 February 2015 06:20 AM

Small businesses are the lifeblood of our economy, accounting for 64 percent of new private sector jobs. But Americans apparently are fearful of starting new businesses.

Gallup found that 25 percent of us have considered doing so, but decided against it.

"Start-ups are essential to economic growth, so supporting prospective entrepreneurs a business could help them convert their interest into action," write Gallup's Sangeeta Bharadwaj Badal and Bryant Ott.

So what accounts for the reluctance?

  • A whopping 84 percent said the security of steady wages influenced them away from entrepreneurship.
  • Similarly, 66 percent said they worry about the slim chance for success of a start-up. An overwhelming majority of new businesses fail within a year.
  • Meanwhile, 68 percent say they have insufficient savings to start up their own business.
  • Lack of business experience. A total of 49 percent say they have an idea but don't know where to start, and 29 percent say they have no knowledge about running a business.

Jean Card, former speechwriter for the secretaries of Labor and Treasury, is concerned about start-ups.

"The small business half of the economy is only just starting to peek its head above water," the communications consultant writes in U.S. News & World Report. "The American economy (GDP) is comprised of two equal halves — a big business half and a small business half. Many folks don't realize that the small business half really is as significant as the big business half."

Card notes that the National Federation of Independent Business (NFIB)'s small business optimism index is still below its historical average before the Great Recession. "We are in the midst of an historic decline in business dynamism," she says.

"If small business were doing as well, the recovery would have included far more job creation at this point." The economy generated 2.95 million jobs last year, the most since 1999.

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Small businesses are the lifeblood of our economy, accounting for 64 percent of new private sector jobs. But Americans apparently are fearful of starting new businesses.
Gallup, entrepreneur, business, economy
320
2015-20-25
Wednesday, 25 February 2015 06:20 AM
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