Most small business owners self finance their businesses and with relatively small amounts according to a recent Wells Rago/Gallup Small Business Index study. Most small business owners spend on average $10,000 to get the ball rolling and start trading.
According to the survey 73% of business owners funded their business from their own savings which 37% obtained loans. Over half of the people surveyed said that they would have had a much easier time had more money been available at the time. Personally, I expect that this would always be the case regardless of the available funds?
Interestingly enough, only 31% of small business owners started out with a business plan. This is probably indicative of the borrowed finance as when you loan money a busness plan is required.
49% of those starting out in business said they would have had an easier time had they sought the experience of existing established business owners whilst 39% also wished they had a better understanding of financial management.
"The reality of owning a small business is both exciting and a bit scary," Rebecca Macieira-Kaufmann, executive vice president and head of the Small Business Segment for Wells Fargo, said in a statement. "The survey results provide us with real insight into what it takes to start and run a small business, and what many small business owners wish they had at the onset - more capital and more financial management education."
The Wells Fargo/Gallup Small Business Index surveyed approximately 600 small-business owners nationwide.
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