America is still the land of opportunity for entrepreneurs, where a business can be started for a modest startup investment. That’s according to a study released today by the U. S. Small Business Administration’s Office of Advocacy.
“Not all new ventures require large infusions of capital,” said Dr. Chad Moutray, the Office of Advocacy’s Chief Economist. “Everyday ordinary Americans strike out on their own to grab their piece of the American Dream. It doesn’t take a lot of savings to participate in the ownership society, just a good idea and lots of hard work and perseverance,” he said.
In the study of 800 nascent entrepreneurs, modest startup costs were projected for most new ventures. Solo entrepreneurs expect median startup costs of $6,000, while the median cost expected by team ventures is $20,000.
More than 80 percent of the entrepreneurs studied expected to cover their startup costs without bank loans. The most prevalent source of startup funding was personal credit cards and help from spouses/family/friends.
Read the full study.