New survey reveals small business owners motivations

6/20/2011

It is commonly believed that many entrepreneurs opened their businesses because they were laid off from their previous job. However, a recent study conducted by Deluxe indicates that this is not necessarily the case.

According to the report, 75 percent of small business owners started a new company because they wanted to follow their dreams and passions, while only 10 percent did so because they were laid off. Independence was also a crucial factor - nearly two-thirds of respondents (63 percent) would not take a new job at another company if it was offered to them.

Though most entrepreneurs are pursuing their passions, there are still obstacles blocking their paths. Managing costs of doing business and securing credit were challenges faced by 19 and 12 percent of respondents, respectively.

"The results of the survey also hint that this group may be more optimistic than the broader small business population, but struggles still exist for small business owners and entrepreneurs," notes the report.

Entrepreneurs having trouble securing commercial loans may want to consider other sources of funding, such as private investors or friends and family. According to a recent report from Pepperdine University, few business owners consider these options.