A survey conducted by Guidant Financial, a small enterprise financing firm, and LendingClub Corp (NYSE:LC), an online credit marketplace, has revealed that owners of small businesses are approaching this year with confidence and economic optimism. Aspiring entrepreneurs and small business owners numbering over 2,600 in all the 50 states in the U.S. were surveyed.
Among the survey respondents the number one reason they gave for going into business in 2017 was to be captains of their own destiny. In 2016 dissatisfaction and unhappiness with corporate America was the top reason for starting a business. At the moment 72% of small business owners are male though the number of women going into business increased by 18% in 2017.
Rising business optimism
Business optimism has also been on an upward trend with 63% of the small enterprise owners saying that on a scale of one to ten they rated the current political climate at 7-plus. The rest of the survey respondents gave a rating of six or less to the current political climate. The number of business owners who rated their happiness level at eight or more on a scale of one to ten was 75%.
With regards to aspiring entrepreneurs 55% in this group indicated that their confidence levels with regards to small business was eight or more. According to the survey the biggest challenges facing aspiring entrepreneurs included lack of funding, lack of knowhow and inability to identify opportunities. Over 50% of aspiring entrepreneurs lack the funds to put a down payment. About 41% of aspiring entrepreneurs also indicated that they didn’t have the knowledge concerning financing opportunities.
“From a small business perspective, we saw increased economic optimism and confidence in 2017, and more entrepreneurs taking the plunge to start a business. Tax reform and economic growth stand to benefit many small business owners in 2018,” the chief executive officer of Guidant Financial, David Nilssen, said.
The survey also revealed that California was the leading state with regards to the highest number of entrepreneurs. It was following by the state of Florida and then Texas. In previous years the state of Texas had held on to the number two spot before losing it last year.