Survey: 23% Considering Starting a Small Business in 2024
Intuit has released its Entrepreneurship in 2024 Report, which features some interesting tidbits.
About the findings:
Intuit’s report was derived from surveying more than 4,500 adults in the United States. Headlining the report is the fact that nearly one-quarter (23%) of respondents stated that they considered starting a business in the new year. Members of Gen Z were the most likely to be mulling the idea, with 28% responding affirmatively. On the opposite end, only 10% of Boomers said they had any intent to create a business in 2024.
On a similar note, Gen Zers were also more likely than older generations to invest in growth. Of those surveyed, 88% of Gen Z small business owners said they planned to expand their e-commerce or brick-and-mortar businesses next year. At the same time, two-thirds of Gen Xers and Baby Boomer-owned businesses said the same. Meanwhile, more than three-quarters of Gen Z and 80% of Millennial business owners intend on hiring in 2024 compared to just 58% of businesses owned by those of older generations.
As we head into the new year, inflation continues to be the top-cited challenge affecting small businesses. This response was followed by “higher interest rates.”
At the same time, inflation has also been a key motivator for those starting businesses. In fact, 57% of business owners said that inflation led them to look for other sources of income. This was matched by the 57% of respondents who said that the pandemic spurred a rethinking of priorities, which inspired them to start a business. Digital technologies also played a role in the creation of new businesses, with 53% noting that these innovations made it possible for them to launch their own business.
Finally, the latest report also looked at how entrepreneurs defined success. For 42% of small business owners, increasing revenue was cited as a primary goal for 2024. Elsewhere, of the 1,000 “side hustle business owners” surveyed, 62% said they’d quit their day job if they were able to earn at least $100,000 a year from their business. Speaking of income, although Baby Boomer respondents said they’d be satisfied and feel successful if they made an average of $126,000, the average among Millennials surveyed was much higher at $288,000.
Reacting to this report in reverse order, the fact that people of my generation feel like they need to earn more than a quarter of a million dollars in 2024 to feel successful is mindboggling. I’m not sure I have an exact number in mind, but it would definitely be lower than that.
Setting that aside, I do think it’s fascinating that inflation was named both as a top challenge and as a main instigator for business. To me, that fact truly embodies the entrepreneurial spirit and shows why American small businesses are sure to prosper in 2024 and well beyond.