A survey conducted by FreshBooks found that 24 million Americans want to work for themselves through starting their own business by 2021. But according to 2018 estimates, only two million will go into full-time self-employment.
FreshBooks vice president of strategy Matt Baker explains the top five reasons why many Americans do not start their own business despite their desire to do so.
1. Lack of self-confidence. The FreshBooks survey found that 27% of respondents do not start businesses because they do not have a complete business plan. Baker suggests using applications and easy-to-use software like FreshBooks to get started with their own business.
2. Lack of capital. Thirty-five percent of respondents are concerned about having consistent income if they venture into self-employment. Another 28% do not have the money to invest in their own business or pay their existing debt and 27% are not earning enough.
3. Lack of health benefits. This is one of the major concerns of most of the respondents. But Baker believes that incurring additional expenses with buying your own health insurance may be very well worth it. He explains that self-employed people reported feeling healthier and less stressed.
4. Lack of equality. The survey found that there are only 35% self-employed women, compared to 65% men. The findings also reveal income gap, with women earning 28% less than their male counterparts.
5. Lack of direction. Fourteen percent of respondents do not know what they really want to do.
The FreshBooks study also found that 35% of people working for small businesses are considering starting their own business in two years. For those who started their own business, 55% are earning more and 63% reported improvement in quality of life. In addition, 96% of them no longer have any plan to return to traditional work.