More Entrepreneurs Buying Businesses

We’ve pointed out before here at Small Business Trends that the United States is becoming more entrepreneurial.

More people own small businesses than ever before. Depending on which statistics you use, the number of U.S. small businesses is somewhere between 5 and 10 million. That estimate jumps to over 20 million if you include the self-employed and sole proprietors.

An important subset to this overall entrepreneurial trend is the increasing number of Americans who are buying existing small businesses, instead of starting their own. According to a report by Wachovia, small business acquisitions are growing in popularity. On any given day in the United States, 1.7 million businesses are for sale.

The reason people are buying businesses instead of starting them is money. For many kinds of industries, such as manufacturing or owning a motel, the cost of starting a new business would far exceed the cost of buying into an existing operation.

Anecdotal reports from mergers & acquisitions professionals and business brokers suggest there are more buyers than sellers in certain industries. One reason is the number of out-of-work corporate executives. These days, more than ever before, there are greater numbers of veteran business people who can come up with the $100,000 to $2 Million (USD) they might need to buy an existing small business. And who prefer to be business owners rather than employees.

1 Comment ▼

Anita Campbell - CEO

Anita Campbell Anita Campbell is the Founder and Publisher of Small Business Trends and has been following trends in small businesses since 2003. She is the owner of BizSugar, a social media site for small businesses, and also serves as CEO of

One Reaction

  1. Pingback: Small Business Owner » Blog Archives » Small Business Matters Subscription Newsletter for Entrepreneurs

Leave a Reply

Your email address will not be published. Required fields are marked *


Free e-Book: 8 Insights You Need to Know Before Choosing HR Software for Your Small Business

Learn how to navigate the HR software market, avoid getting oversold on unnecessary features and choose the right tools for your small business's unique needs.

No, Thank You