Here’s why most people decide to start a small business

Every business owner has had some sort of motivation for getting started. And interestingly enough, many business owners have been inspired by similar reasons.

Each year, Guidant Financial and the Small Business Trends Alliance (SBTA) conducts a survey amongst business owners to find out more about what it's like to own a business and to track small business trends. One of the questions in the survey asks respondents why they took the leap.

As it turns out, there are a variety of reasons someone might open a small business. But topping the chart is people who have decided that, more than anything else, they're ready to be their own boss. This segment accounted for 29% of respondents. When you're your own boss, you can make your own schedule, approve your own ideas, and there's no need to answer to anyone. It doesn't come without hard work, of course. But for many people, it's worth it.

Coming in at 17% are people dissatisfied with corporate America. Combined with those who want to be their own boss, that means that nearly half of the freedom seekers who have started a business did so because they were fed up with their current work environment.

In 16% of cases, business owners were fueled by the desire to pursue their passion and in 12% of cases, those surveyed said an opportunity presented itself. Then there are those who had a bright idea they wanted to see through. These 9% were motivated by "inspiration for a new business."

Then there are people who no longer wish to work in a traditional setting but don't want to stop working completely, so 7% account for those who simply weren't ready to retire. The last 7% were laid off or their job was outsourced, so they were presented with a need.

Keep in mind that these answers came from more than 2,400 people surveyed in 2021, so these business owners are facing unprecedented challenges from the COVID-19 pandemic. Their motivation and resilience exhibited by them speaks volumes. In fact, 23% of the respondents reported a loss of revenue due to the pandemic. While there are already challenges associated with the start of a small business, in many cases this time period made it harder than ever.

No matter what the reason was for starting your own business, it's important to have great legal representation. Contact the Law Offices of Donald W. Hudspeth, P.C., today to learn more about how to fully set yourself up for success in your growing venture.

Categorised in: Starting a Business in Arizona

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