Do you dream of becoming a successful entrepreneur but agonize over the amount required to open a business? If you think that a million dollars is needed, think again. The results of a recent survey on entrepreneurs conducted by Kabbage debunked that premise.
Believe it or not, 58% of respondents stated they had less than $25,000 when starting their business while 33.33% started with only $5,000. The survey was confined to successful entrepreneurs whose businesses existed for 10 years or more.
These findings align with U.S. Census Bureau data showing that the average startup amount was around $25,000.
After starting their business, about 67% of the respondents were fearful the money was insufficient with more than 90% estimating their funds were fully exhausted in less than 18 months.
The industry often dictates the amount of initial investment. Entrepreneurs who went into manufacturing, medical, and restaurants started with $100,000. Nearly 40% of those who started with $5,000 or less were in accounting, construction, landscaping, and online retail.
Money is always a factor but 82% of entrepreneurs didn’t doubt their abilities. All it takes is business acumen, perseverance, and self-confidence to grow your capital. You don’t need angel investors to pursue your dream.