Family support is crucial to succeed as an entrepreneur. Luckily, most business owners have the necessary backing from home. That’s according to a new Bank of America (NYSE: BAC) study.
The Fall 2016 Bank of America Small Business Owner Report (PDF) has found 83 percent of entrepreneurs say they receive some form of emotional, operational and/or financial assistance from their loved ones.
Strong Family Support for Entrepreneurs Makes a Difference
The study has found some interesting data to show how family support plays a big part in a business owner’s success. Some of the key highlights are:
- About 53 percent of business owners rely on family to serve important roles in their business (advisers, employees, partners, investors, etc).
- More than one-third (38 percent) have received financial gifts or loans from family and/or friends to fund their business.
- A majority of entrepreneurs (76 percent) rely on personal savings as a top source of financing. Once established, bank loans (43 percent) and credit cards (42 percent) become their top sources of capital.
“We know small business owners are inherent self-starters making significant personal sacrifices on behalf of their businesses, but what’s fascinating is this dimension of family, friends and community that they see as core to their success,” said Sharon Miller, head of Small Business at Bank of America. “As apprehension about the economy stalls plans for many to grow and hire, small business owners are forging ahead with a foundation of support from loved ones and local networks. It shows why it’s so important for us at Bank of America to serve and support business owners, their families and local communities.”
The Bank of America Small Business Owner Report was conducted by GfK Public Affairs and Corporate Communications. GfK surveyed 1,000 small business owners in the United States.
Image: Bank of America
It is hard to get money from sources that are not your family. Family members are usually more lenient when it comes to lending money and doesn’t command high interest rates.