Majority of SMEs satisfied with the decision to strike out on their own

Cashmanager | 4 years ago

Entrepreneurs face a vast array of challenges, from generating the funds necessary to start their company to finding the right business accounting software. But when it comes to doing it all over again, it seems most business owners found the struggle to be worthwhile. 

A new poll from Gallup revealed that 84 per cent of small-business owners in the US wouldn't change their decision to open their own company. Thirteen per cent said they'd do something else instead, while a mere 3 per cent weren't sure if they'd make the same choice if they had to go back. These statistics could be quite similar in New Zealand. 

The survey, which polled 600 small-business owners, is in line with results from past years, indicating the global recession wasn't putting entrepreneurs off. Results from the same poll conducted in 2010 were almost identical to this year's - 83 per cent of respondents said they'd do it all over again, 15 per cent would do something different and 2 per cent were uncertain. 

While most business owners were happy with their choice, they admitted they faced a variety of challenges in getting their company off the ground. Twenty-three per cent cited securing accounts and generating revenue and a customer base as the largest difficulty, while 15 per cent said cash flow was the biggest problem. Credit financing and coping with bureaucracy were mentioned by 10 per cent and 8 per cent, respectively.

However, one challenge many SMEs face is settling their accounting processes. While some owners may be intimidated by the idea of investing in small business software and completing these tasks themselves, it can be beneficial in the long run. This DIY approach can also help the significant portion of entrepreneurs who said they struggled with cash flow save money on accounting, rather than paying someone else to complete this vital business task.