E-Source Says

The Faces of Entrepreneurship

Small businesses are the backbone of the American economy, contributing by selling goods and services and employing people in their communities. These businesses were started by entrepreneurs because they had the drive and passion to try something new. 

The rise of entrepreneurship shows no signs of slowing down as we move into the second half of 2023 and the possibility of an economic downturn. Just as there is an assortment of different businesses, there is an assortment of reasons to branch out on one’s own. There are many different faces of entrepreneurship and one size does not fit all. In fact, 16% of the entire workforce are entrepreneurs. 

Getting started

According to Guidant Financial motivations for starting a business include pursuing a passion (31%), an opportunity presented itself (21.36%), or because they were newly unemployed (23.44%). Other reasons may include wanting to leave corporate America, having control over their schedule, and working autonomy.

About ⅔ of entrepreneurs start their own business with personal capital. Others may use money from family and friends, bank loans, or crowdfunding, with 33% starting with less than $5,000 (Lendio). 

As important as funding is, it’s also just as important to look into growing industries for the best chance of success. Travel/hospitality, media, energy, security, and real estate are the top five most popular industries with promising growth rates. Many people choose to stay within a similar industry as their previous workplace because of the knowledge and connections they already have.

Demographics

Entrepreneurs in the U.S. are more likely to be male than female with more than half (59%) being men. As for race/ethnicity, white people made up 71% of the entrepreneur workforce, followed by Hispanics/Latinos (14%), Black/African Americans (6%), and Asians (6%). 

According to an annual business survey from the United States Census Bureau, in 2018 minority-owned businesses totaled 1,048,323. Hispanic/Latino entrepreneurs are showing the greatest gains.

In terms of age, 63% of entrepreneurs are over the age of 40, and only 7% between the ages of 20-30. Among Black, Asian, Hispanic, and white entrepreneurs, women tend to become business owners at a younger age than their male counterparts, per Zippia.

Geographically, entrepreneurs earn the most in New York, where the average entrepreneur salary is $107,291 and New York City and Chicago IL being the most popular (Zippia). There is quite a range across the US. Starting a new business in Texas or Florida could be especially favorable, as they are among the top states with the fastest-growing firms in the country.

The Entrepreneur’s Source® is Empathetic, Engaged, Encouraging, Educative, and Earnest. We’re here to coach and offer companionship as you begin your entrepreneurial journey. Entrepreneurship has gradually become a preferred career path for adults ranging from energetic 20-year-olds to more experienced individuals nearing retirement age from Florida to Alaska and everywhere in between. No matter your age or industry, starting a business can be profitable and rewarding.

Looking to connect online with the nation’s largest franchise business expo? Start A Business Weekend is just the place. If you’re ready to start your entrepreneurial journey and adopt a Multi-Unit Mindset, we’re here for you! Check out our book, “Your Career Revolution” and other resources regarding entrepreneurship here.

Learn More About Career Coaching
If you are considering a career change, invest in yourself to discover your options, possibilities, and dreams. Chat with one of our coaches to begin your career revolution. To learn more about career coaching, visit www.entrepreneursource.com or check out our guidebook, “Your Career Revolution: Reimagine and Reclaim the Life of Your Dreams.”