1 in 4 entrepreneurs fail at least once before succeeding. It takes entrepreneurs an average of three years for their business to begin supporting them financially.
These somewhat blunt statistics involving entrepreneurialism were the findings of a study by Skynova, a small business resource for creating professional invoices. Skynova surveyed 250 entrepreneurs to find out how much money it takes to launch a business, as well as the main challenges they face when getting a new venture up and running.
With the average time taken for a business to become financially profitable being three years, it’s not that surprising that 36% of entrepreneurs say they had considered quitting before their business took off.
1 in 4 Entrepreneurs Fail in Business
Skynova’s survey provides an insightful picture of the struggles, as well as the resilience of entrepreneurs in the United States. With the right knowledge, resources and support, small businesses can overcome the challenges and create sustainable, profitable businesses. As ‘The Entrepreneurial Journey’ notes:
“Starting a small business and becoming an entrepreneur isn’t an impossible dream, but it does take work, and the road may not be easy. Many entrepreneurs invest over $6,000 in getting their firms off the ground and wait years before their businesses are profitable enough to live off. Along the way, there are challenges of self-doubt, fear of the unknow, financial concerns, and general lack of sleep.”
Typical Age and Investment When Starting a Business
The survey found that, on average, entrepreneurs lauched their business when they are 30 years old. Business owners invest and average of almost $6,200 on their business when they launch.
Most Common Effects of the Pandemic
The survey delved into how the Covid-19 pandemic has impacted small businesses in the US. 76% of the entrepreneurs surveyed say the health crisis has negatively affected their business growth.
57% said they experienced a loss of revenue, 39% admitted to losing customers, and 33% of entrepreneurs say they have had to pivot their business. 15% of the survey’s participants say they have been forced to make major budget cuts, and 9% have had to close their business. 5% of the business owners surveyed say the pandemic has forced them to make staff cuts.
PPP Loan Recipients and Post-Pandemic Revenue
The report shows that only 8% of entrepreneurs have received a PPP loan for their business. 55% of business owners who received a PPP loan were more likely to indicate that their pre-pandemic revenue was returning to normal. This compared to 43% of entrepreneurs who hadn’t received a PPP loan and said their revenue was returning to pre-pandemic levels.
Skynova’s study provides heartening confirmation that despite the many challenges and setbacks, particularly in the wake of a health crisis the size of the Covid pandemic, entrepreneurs show the determination and resilience required to succeed.
The journey to success is likely to be easier with the right financial support and assistance in place, such as PPP loans and small business resources like Skynova’s online platform for analyzing and managing invoices.