Nearly 40% of Business Founders Say Their Biggest Challenge is Establishing a Customer Base
Entrepreneurs often face a variety of challenges when starting a business. The Manifest's survey of 501 business founders highlights their primary driving factors and roadblocks.
WASHINGTON, Dec. 3, 2020 /PRNewswire/ -- During a year largely defined by the onset of the COVID-19 pandemic, one might expect fewer new business ventures. However, the number of new businesses started in the US has hit a 13-year high.
A solid customer base helps business founders get their company established. New data from The Manifest shows that 36% of founders say that their biggest challenge was building a customer base.
Business founders can look for a customer base early in the process of creating their company by identifying knowledge or product gaps in the market that their company can fill.
Other challenges include maintaining a strong support network. Just 11% of founders expressed worries about maintaining a support network outside of their business venture. Support networks can include business partners, family members, and close friends.
Income Potential and Passion Are Driving Factors for Starting a Business
More than one-quarter (26%) of business founders started their own business to improve their income potential.
Despite the economic uncertainty that resulted from the COVID-19 pandemic, 3.2 million employer identification number applications were received in 2020. Many entrepreneurs took advantage of new opportunities and consumer demands by starting a new business and establishing a new source of income.
Other business founders relied on their hobbies and interests to launch their business. One in five (21%) of founders started their business to pursue a personal passion.
Although some markets are highly saturated, passionate individuals can find success by effectively branding and marketing themselves and their company. The internet serves as a useful tool for new entrepreneurs, allowing them to create a website or blog with little overhead costs.
Women in Business Face Unique Challenges
Female business founders expressed more worries about starting a business than male founders did, with 83% of female founders expressing these apprehensions compared to 75% of male founders.
Women face a variety of social and structural barriers in the workplace. A 2019 study found that female founders were 63% less likely to receive funding from venture capital firms. These barriers disproportionately affect women of color.
Female founders identified access to funding (20%) and paying off debt (11%) as their primary challenges. By comparison, only 7% of male founders expressed the same worries about debt.
Despite these hurdles, the number of women-owned businesses in the United States increased by 21% in 2019.
Potential founders should take these factors and challenges into account when looking to start their business venture.
The Manifest's survey included 501 startup founders.
Read the full report here: https://themanifest.com/business-consulting/business-ventures-examples-new-business-ideas
For any questions about the survey, input on the findings, or an introduction to the industry experts included in the report, contact Abby Saldana at [email protected].
About The Manifest
The Manifest is a business news and how-to website that compiles and analyzes practical business wisdom for innovators, entrepreneurs, and small and mid-market businesses. Use The Manifest as an approachable tour guide through every stage of the buyer journey. With three main offerings – data-driven benchmarks, step-by-step guides, and agency shortlists – The Manifest strives to make your business goals a reality.
Contact
Abby Saldana
[email protected]
(202) 350-4344
SOURCE The Manifest
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