Latest Compendium on Small-Scale Enterprises 2024
New Study Reveals Insights into Small Business Ownership and Challenges
A recent survey conducted by NerdWallet and The Harris Poll in October 2024 has shed light on the motivations, challenges, and future outlook of small-business owners in the United States. The survey, which focused primarily on personal finance topics and economic conditions, did not directly report on the current state of small business growth and challenges. However, it did provide valuable insights into the experiences of small-business owners.
The survey found that starting a small business is a significant decision for many, with the most common motivation being the desire to increase income (50%). Interestingly, about one in five small-business owners (19%) were motivated to start their business due to the COVID-19 pandemic.
Small-business owners are facing a variety of challenges, with finding or retaining customers being the most common (54%). Despite these challenges, the majority of small-business owners (73%) report making more money now than they could if they returned to working for someone else. This sentiment is further reflected in the fact that more than nine in ten small-business owners (93%) are currently facing challenges, yet more than seven in ten (70%) never want to work a traditional job again.
The survey also revealed that about two-thirds (66%) of small-business owners believe their savings are on track to have enough money to retire in the future. This optimistic outlook might be due to the actions small-business owners are taking to cope with recent economic conditions. Eighty-four percent of small-business owners have taken some action in the past 12 months, with the most common action being increasing prices (33%). Some owners have taken more drastic actions, with 15% changing physical location and more than one in 10 (11%) shutting down a storefront.
The survey included small-business owners who sell goods, sell services, are influencers, or describe their business in "other" terms. It is worth noting that more than 42% of Americans currently or previously owned a small business. Applications for employer identification numbers remain elevated, with about 426,000 being filed in September 2024, indicating a continued interest in entrepreneurship.
In terms of business growth, equal proportions of small-business owners have expanded (23%) and reduced (23%) their product or service offerings. It is important to note that the survey did not provide direct data on the current state of small business growth and challenges in the U.S. If you need this information, it may require direct access to the full survey report or a dedicated release by NerdWallet or The Harris Poll focusing on small businesses.
In summary, the survey provides valuable insights into the motivations, challenges, and future outlook of small-business owners in the United States. Despite facing challenges, the majority of small-business owners report making more money than they could if they returned to working for someone else, and the vast majority never want to work a traditional job again. The survey also reveals that small-business owners are optimistic about their retirement savings and are taking action to cope with recent economic conditions. However, more detailed information on the current state of small business growth and challenges may require access to the full survey report or a dedicated release by NerdWallet or The Harris Poll.
- One of the common motivations for starting a small business is to increase income, according to a survey by NerdWallet and The Harris Poll.
- Among small-business owners, finding or retaining customers is the most common challenge they face.
- The app, increase prices, and change physical location are some actions taken by small-business owners to cope with recent economic conditions.
- Most small-business owners (73%) make more money now than they would if they returned to working for someone else.
- Personal finance and economic conditions are the focus areas of the survey, but it did not directly report on the current state of small business growth and challenges.
- An entrepreneur or small-business owner might benefit from analyzing their personal savings and spending habits to achieve financial stability and retirement goals.
- The survey showed that small-business insurance and financial analysis apps could be useful tools for managing business and personal finance.
