Although many small business owners face continued economic uncertainty, their personal drive and long-term aspirations are buoying their optimism. That’s according to data from the third Amex Trendex: Small Business Edition, an annual survey commissioned by American Express.
“Small business owners are concerned about issues like pricing and cash flow, but they are overwhelmingly happy that they chose their career path as an entrepreneur, and most intend to be small business owners for the long run,” said Gina Taylor Cotter, EVP & GM, Small Business Products & Business Blueprint at American Express. “We also found that growing up with technology and social media has influenced how Millennials and Gen-Zers operate as small business owners: they are more likely to start a company right out of school and rely on technology to run their business.”
Amidst pricing and cash flow concerns, small business owners’ drive and long-term aspirations keep them motivated.
Pricing/price hikes (44%) and cash flow (35%) are small business owner respondents’ top concerns, which is consistent with Amex Trendex findings over the past year. Nearly 7-in-10 (68%) wish that they had more time to focus on their product/service vs. managing their businesses’ finances. But small business owners have a positive mindset despite these challenges: 95% of those surveyed are happy with their decision to start their company.
The Amex Trendex report found that small business owners are motivated by their long-term ambitions. Six-in-ten respondents (60%) expect their business to be a long-term venture and run for more than five years. When asked about their long-term business goals, longevity rose to the top (49%), followed by becoming an established leader in their industry (32%) and growing their employee base (24%).
As for why owners chose to start their small businesses: more than eight-in-ten respondents (84%) were inspired by a personal passion; nearly two-thirds (65%) saw a need in their community; about six-in-ten (59%) want to support their family and future generations; and over four-in-ten (44%) needed more flexible work.
Survey suggests that growing up with technology and social media influences how Millennials and Gen-Zers take to small business ownership.
Millennial and Gen-Z small business owners surveyed are most likely to have learned about entrepreneurism online or on social media (56%), compared to Gen-X and Boomers who knew an entrepreneur personally (47%). They are also more likely to have started their business right out of school: one-in-five (20%) Millennial and Gen-Z small business owners surveyed indicated they were students or unemployed before starting their business (vs. 3% of Gen-Xers and Boomers). About six-in-ten (59%) of Millennials and Gen-Zers surveyed had a traditional job (private sector, government, or another role in their current business) before starting their business, compared to almost three-fourths (74%) of Gen-Xers and Boomers.
The survey also found that Millennial and Gen-Z small business owners, who grew up with technology, rely on it to run their business. When asked about the top contributing factors that helped them navigate the past few years, one-third (33%) of Millennials and Gen-Zers cited technology solutions vs. 18% of Gen-Xers and Boomers.
Millennial and Gen-Z small business owners surveyed are also more skeptical about what it takes to be a successful entrepreneur than older generations. They are about twice as likely to think that “you have to be wealthy to start a business” (21% vs. 9%), that “true entrepreneurs do it alone” (29% vs. 15%), and one-third (33%) think that “entrepreneurs are born and not made” compared to 22% of Gen-Xers and Boomers.
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Tags: Small Business
