What’s next forthe small businesseconomy?
September 2020

After a decade of growth, 2020 has been a tough year forsmall businesses. The impact of the coronavirus has been felt
everywhere. It would be hard to find any business operating
today as it did in 2019. But the small business economy isresilient. Anecdotally, there are examples all over the U.S. of
businesses adapting not only to survive but thrive. Looking backto the aftermath of the 2008 Great Recession, the rate of new
business growth was more than three times what it had beenin the years before it¹. Are the same trends emerging now, as
2020 shapes not only the current generation of small businesses
but the next generation as well?
To find out, QuickBooks commissioned a survey of 1,600
current and prospective business owners to put some numbers
behind the stories.

¹U.S. Bureau of Labor Statistics data shows a 20% increase in the number of new business starts
per year between 2010 and 2015, compared to a 6% increase during the previous six-year growth
period from 2001 to 2006. Source: Entrepreneurship and the U.S. Economy. (2020). Bls.gov.
Retrieved August 5, 2020, from https://www.bls.gov/bdm/entrepreneurship/bdm_chart1.htm.

Contents

2

Contents

Key findings

4

Sample and methodology

5

Section 1: Impact of the coronavirus

8

Section 2: New business growth12

Section 3: Lessons for the next generation

15

Conclusion: The future of small business

19

Appendix21

3

Key findings
Working at home

Adversity sparks innovation

Bold hiring plans

23% of small businesses starting in the

28% of people who want to start a

New business owners wanting to startnext 12 months will have 100% remotebusiness in the next 12 months say theventures in the next 12 months intend to

workforces

coronavirus has accelerated their planshire seven contractors and 10 employees,

Online sales boom

Beyond digital

28% of small businesses are selling more

87% of small businesses that will open

Business planning

products and services online this year.

in the next 12 months will be online

More than 1 in 10 prospective business

94% say the coronavirus has influenced

primarily or a combination of online

owners do not intend to write a businessthis change

and offlineplan, yet 69% of people who own a small

Rapid innovation

Growing industries

86% of small businesses that have

The fastest-growing industries for small

Call the experts

developed new products and services

businesses over the next 12 months will

According to small business owners, thethis year have done so as a result of thebe accommodation and food services,

first thing new businesses should getcoronavirus

arts and recreation, and retailhelp with is setting up financial systems

Surviving tough times

New optimism

45% of small businesses surveyed

72% of prospective business owners are

Learn from experience

applied for a government-backed relief

optimistic about the prospects for small

The top three financial processes small

program this year

businesses over the next 12 months—

business owners wish they’d invested in

61% were successful in obtaining funds

that’s compared to 42% of people whosooner are expense tracking, inventory,

currently own a small businessand invoicing

on average, within their first 12 months

business recommend it

correctly

Side gig to small businessTomorrow’s business owners are today’s
gig workers, with 42% starting a new
business to make a side gig “official”

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4

100%

34%
have been
operating for five
years or fewer

75%

Sample and methodology
Qualtrics distributed two online questionnaires to 1,600 people for
QuickBooks in August 2020. 965 current small business owners completed one

44%
have been
operating forsix to 20 years

50%

questionnaire. 635 people who intend to start a small business in the next 12months completed the other. The questionnaires were substantially different,
but each cohort answered a set of nine similar questions to allow comparisons

25%

22%

between responses.

have been
operating forover 20 years

Current small business owners
965 people who currently own a small business completed a 25-question survey.
These businesses employ up to 100 people and have annual revenues of at least$5,000. Roughly 1 in 3 (34%) has been operating for five years or fewer. 44%

The top five industries
self-selected by this cohort
Professional, scientific,
and technical services

have been operating for six to 20 years, and 22% have been operating for over
20 years. The top five industries self-selected by this cohort—comprising 56% ofConstruction

total responses collected—were professional, scientific, and technical services;
construction; retail trade; other services (except public administration); andfinance and insurance (Table 42). All respondents were aged 18 to 65 and older,with an average age of 46.

Retail trade

Other services (except
public administration)

Finance and insurance

Contents5

Future small business owners

Top five industries
self-selected by respondents

635 future small business owners—defined as people who do not currently own abusiness but intend to start one within the next 12 months—completed a 22-question
survey. The top five industries self-selected by these respondents—comprising 53%
of the total responses collected—were accommodation and food services; arts,
entertainment, and recreation; retail trade; educational services; and construction(Table 15). All respondents in this cohort were aged 18 to 65 and older, with anaverage age of 37.

Accommodationand food services

Arts, entertainmentand recreation

Retail trade

Educational services

Ages of survey respondents
Construction
250

200

53%

150

of the total
responses
collected

100

50

18-24

25-29

30-34

35-39

Current small business owners

40-44

45-49

50-54

55-59

60-64

65+

Future small business owners

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Industries represented by survey respondents
Retail Trade
Construction
Professional, scientific, and technical services
Accommodation and food services
Arts, entertainment, and recreation
Other services (except public administration)
Finance and insurance
Educational services
Health care and social assistanceReal estate rental and leasing
Information
Wholesale trade
Administrative, support, waste management, remediation
Manufacturing
Agriculture, forestry, fishing, and hunting
Transportation and warehousing
Management of companies and enterprises
Public administration
Current small
business owners
Future small
business owners

Utilities
Mining
20

40

60

80

100

120

140

160

180

200

Statistical significanceFor the purposes of this report, small businesses are defined as employing up to 100 people, with annual revenue of at least $5,000. The latest data from the
U.S. Census Bureau’s Statistics of U.S. Businesses (SUSB), published in March 2020, shows that, in 2017, there were 5,907,070 U.S. businesses with zero to 100
employees². Based on this, taking the total sample of 1,600, the data has a 99% confidence level at a 3% confidence interval. Margins vary for subgroups. Notethat some percentages in this report may not sum to 100 due to decimal rounding or because questions have multiple-choice answers.
²Source: 2017 SUSB Annual Data Tables by Establishment Industry. The United States Census Bureau. Retrieved August 5, 2020, from https://www.census.gov/data/tables/2017/econ/susb/2017-susb-annual.html
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Section 1:
Impact of the coronavirus
Small businesses adapt to survive
It is clear from the responses of the 965 small business owners
that 2020 has brought major changes—even for businesses thatremain strong. More than 1 in 3 (34%) said they cut costs thisyear. More than 1 in 4 (28%) are more reliant on e-commerce,
and more than 1 in 5 (22%) have developed new products orservices (Table 1). The majority—up to 95% in some cases—said
the impact of the coronavirus, at least in part, influenced thesechanges (Table 2).

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Top
made
by smallbusinesses
Top55changes
changes madeby smallbusinesses
in 2020 in 2020
Reduce costs throughefficiency savings
More visible healthand safety protocols
Selling more products/
services online
More employees
working at home
Developed new
products/services
25%
Highly influenced by coronavirus

50%

Some influence from coronavirus

75%

100%

No influence from coronavirus

A no-office future for many small businesses
The impact of the coronavirus has also affected workers significantly. We will look at
workforce contraction and expansion below. But if we focus on how working habits
have changed in 2020, we find that 27% of small businesses are allowing more
employees to work from home (Table 1). Around 1 in 7 (13%) small business owners
say all new employees they hire will work remotely or at home (Table 3).
Prospective business owners are significantly more likely to expect new employees towork remotely. The same question was put to the cohort of 625 people who intend toopen a business in the next 12 months. And more than 1 in 5 (23%) say 100% of theiremployees will either work remotely or at home (Table 4).

Contents9Innovation is creating new business opportunities
Digging deeper into the results shown in Table 1, we find that small businesses aren’t
just changing what they sell this year. Around 1 in 7 (14%) have gone as far as to adopt
entirely new business models. Of these, 76% said the coronavirus either “somewhat”

The proportion of current andfuture business owners who say
all new hires will work remotely
100%

or “highly influenced” the shift (Table 2).
Almost 1 in 3 (29%) small business owners surveyed said the current state of theeconomy has had a “positive” or “very positive” impact on their company’s innovation

80%(Table 5). For more than half of these businesses, this innovation has increased
revenue by more than 50% (Table 6). A similar proportion, 28%, said productivity is up
this year (Table 7). Of course, the same is not true for all small businesses, with many60%

saying innovation and productivity have been affected adversely.
Among those who intend to start a business in the next 12 months, almost 1 in 5 (18%)

40%

said their decision has been “significantly” influenced by the coronavirus (Table 8). This23%

is either through necessity—35% say they need a new source of income—or because
they’re looking to take advantage of new business opportunities. For example, 22%20%

said their current circumstances gave them an idea for a new product or service (Table

13%9). 28% said, “It accelerated my plans to start a business.” More on this in Section 2 ofthe report.

0%
Current small
businessownersFuture small
businessownersContents

10

Top 5 ways the coronavirus is influencing new business starts

I needed anothersource of income

35%

It accelerated my plans
to start a business28%

It gave me an idea for a
new product/service

22%

I saw an opportunity to sell a
product/service more competitively

22%

I saw an opportunity to sell a
product/service to a new market

21%
0%

20%

40%

60%

80%

100%

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Access to relief and the impact on workers
Less than half of the small business owners surveyed (45%) said they applied for relief this year
via the SBA Economic Injury Disaster Loan (EIDL) program, the Paycheck Protection Program(PPP), Employee Retention Credits (ERC), or the U.S. Chamber of Commerce Foundation Save
Small Business Fund. Many applied for more than one of these relief programs. According
to the responses collected, 61% of these applications were successful. As Table 10 shows,businesses were most likely to apply for support from the Paycheck Protection Program.
Among the minority of small businesses that have expanded their workforces this year, they
hired more contractors (Table 11) than employees (Table 12) by a narrow margin. They werealso more likely to have lost employees this year than contractors. 24% say they have fewer
W-2 workers, and 20% say they have fewer 1099 workers.

Small business applications for coronavirus relief programs
Of those who applied forrelief programs
Did not apply

55%

61%
Appliedsuccessfully

45%

Applied

39%

Applied but
did not get

0%

20%

40%

60%

80%

100%

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Section 2:
New business growth
Goodbye side gig, hello main gig
Among the 635 respondents who intend to start a business inthe next 12 months, 42% say this is because they want to makea side gig “official” (Table 13). And the businesses they set up
will be overwhelmingly digital. Almost 9 out of 10 (87%) say
their new businesses will be online primarily or a combinationof online and offline (Table 14).
According to the respondents, we can expect to see the most
growth in three industries over the next 12 months (Table 15):
• Accommodation and food services• Arts, entertainment, and recreation• Retail trade

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But the future of small business is not all about gig work. 18% of
the 965 current small business owners surveyed said they hadplans to start another business (Table 16). Of these, 73% said
they expect this to happen in the next 12 months (Table 17).
Similarly, 43% said they would consider opening a new business
if their current business closed for financial reasons (Table 18).
And in this group, 59% said they would do so within the next 12months (Table 19).

Top 5 reasons people want to start a business in the next 12 months

42%

I am making a side gig “official”

I finished my education,and I'm pursuing my dream

24%
11%

I lost my job and decided to go it alone

9%

I quit my job and decided to go it alone

I recently closed another business,and this is a new venture

7%

Other

8%
0%

20%

40%

60%

80%

100%

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14

New business owners are more optimistic
The data reveals a strong sense of optimism among people who hope to starta small business in the next 12 months. 58% of this cohort said they see more
opportunity right now, while 18% said they see less opportunity (Table 20). Moreuplifting still is the fact that 72% feel “optimistic” or “very optimistic” about theprospects for small businesses over the next 12 months (Table 21). By comparison,just 42% of current business owners expressed the same optimism (Table 22).

How current and future small business owners feel about the prospects
for small businesses over the next 12 months

Current small
business owners

Future small
business owners

0%

20%

Very optimistic

40%

Optimistic

60%

NeutralPessimistic

80%

100%

Very pessimistic

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15

More than two-thirds (69%) of prospective business owners surveyed agree that“businesses born in a recession are more resilient” (Table 23). And they may havegood reason to say this. Around 1 in 6 (17%) of current small business owners who
took part in the survey said their business was born in a recession (Table 24). 42% of
these businesses have been operating for more than 10 years.
The optimism among prospective business owners may help to explain their boldhiring plans. More than half (56%) say they intend to hire between one and 10
employees in their first 12 months (Table 25). Exactly half (50%) say they intend tohire between one and 10 contractors over the same period (Table 26).

More than two-thirds (69%)
of prospective businessowners surveyed agree that“businesses born in arecession are more resilient”

Contents

16Section 3:
Lessons for the next generation
What to do before you start a business
The survey asked current business owners to reflect on what
they might do differently if they had a chance to start over. The
survey also asked if they had any advice about how to starta business. The top recommendation—confirmed by 69% of
respondents—is to write a business plan (Table 27). The goodnews here is that 77% of future business owners intend to do
this (Table 28).

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Current and future business agree on the foundations for successWriting a business plan

Researching
the competition

Finding a mentor

0%

20%

Current small business owners advise...

40%

60%

80%

100%

Future small business owners will be...

According to small business owners, when you start a business, you’re most likely toneed help setting up your financial systems correctly (Table 29). Despite this, 38% ofprospective business owners say they intend to set up their own financial systems (Table
30). 76% will choose their own business name and 53% will create their own logo.

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5 things future business owners should get help with, according
to current business owners

Setting up
financial systems

Choosing abusiness structure

Registering the business

Choosinga business nameCreating a logo

0%

20%

40%

Current small business owners who advise paying an expert to do this

60%

80%

100%

Future small business owners who will pay an expert to do thisContents

19

How to get started with accounting
Current and future small business owners agree on many of the
top financial priorities for new businesses. Managing expenses,

Top 3 financial priorities for current and future small
business owners
100%

getting paid, and setting prices were in the top three for bothcohorts (Table 31 and Table 32). But the next generation is more
focused on securing funding than its predecessor, with morethan 1 in 3 (36%) identifying it as a priority. The survey asked

80%

small business owners which financial systems new businesses
should invest in first. Their top recommendations were expense
tracking and invoicing software, which underlines the value of60%

good cash flow management. Payroll software was third on thelist (Table 33). Prospective business owners largely agree withthis assessment. They listed expense tracking and invoicing

40%

as two of the first financial systems they would invest in. But
in each case, around 1 in 4 respondents said they would use
manual systems instead (Table 34).

20%

Expense tracking and invoicing showed up again when thesurvey asked small business owners which financial systems theywish they’d invested in sooner. More than 1 in 7 (14%) said theybought expense tracking software too late. One in 10 (10%) said
the same of invoicing software. Inventory software also made the
top three (Table 35).

0%Managing expenses

Getting paid

Current small business owners

Setting prices for
products/services
Future small business owners

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20

Operational and marketing priorities
for new businesses
Current and future small business owners identified finding customers and suppliers as
top operational priorities. The next generation, however, placed greater emphasis on theimportance of building a website (Table 36 and Table 37).
The lack of consensus over marketing tactics continues elsewhere in the data. People
who intend to start a business in the next 12 months say they favor Google or Facebook
advertising over potentially cheaper alternatives that current small business owners
recommend. These include creating a Google business listing or building an email
subscriber list. Small business owners say those are things you should do within the first yearof starting your business (Table 38 and Table 39).

Do tomorrow’s business owners havethe skills they need?
The answer is yes, according to the survey responses. The survey asked if they would rate
their sales, negotiation, business planning, finance, delegation, and marketing skills as“strong,” “weak,” or “average.” Fewer than 1 in 5 chose “weak” for any area of expertise(Table 41).
Despite this, many have wisely chosen to put a contingency plan in place if things don’t workout. More than three-quarters (76%) of those who intend to start a business in the next 12months say they “definitely” or “probably” have a Plan B. Another 18% say they “might or
might not” have a back-up option (Table 40).

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Conclusion:
The future of small business
Many of the trends revealed in this report reflect what we see around us:
the rise in remote work and growing reliance on digital technology. Butother trends are more nuanced and surprising. For example, despite all its
challenges, 2020 has been a year of innovation for many small businessowners. They’re developing new products or services and, in some cases,
entirely new business models.
Similarly, many people who intend to start a small business in the next 12months identified a new business opportunity in response to the challenges
they’ve experienced in 2020. More than 1 in 4 (28%) said the coronavirus
accelerated their plans to start a business. The sense of optimism among thenext generation of small business owners is encouraging and appears to be
influencing their recruitment plans.

More than 1 in 4 (28%)
said the coronavirus
accelerated their plans
to start a business

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22

Many expect to build a workforce of at least 10 employees or contractors within
the first 12 months of setting up their businesses. The industries that stand to gain
most from this are accommodation and food services; arts, entertainment, andrecreation; and retail trade—many of which have reduced or furloughed workers
this year. Despite the optimism among people establishing new businesses overthe next 12 months, they appear to be approaching these ventures with a dose ofrealism. Just 6% said they do not have a back-up plan if things don’t work out.
The data reveal important lessons for future small business owners. Current
business owners shared insights on everything from what to do before getting
started to how to manage finances and operations. In many cases, the next
generation appears to be aware of what they need to do to build a solid
foundation for the future, whether that’s writing a business plan or finding a

Just 6% said they do nothave a back-up plan if
things don’t work out

mentor. But less so in others, particularly with marketing and when to reach out toan expert. Given what’s happened in 2020, the most valuable assets they may haveare the ones many small businesses have already demonstrated this year. That is
the ability to adapt and remain resilient—yet creative—at the same time.

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Appendix
Data tables

Contents

24

TABLE 1
Sample = 965 small business owners
Back to page 8
Back to page 9

TABLE 2Which of the following changes have you made this year? (Select all that apply)
Reduced costs through efficiency savings

34%

More visible health and safety protocols

32%

Selling more products/services online

28%

More employees working at home

27%

Developed new products/services

22%

Invested more in virtual services

20%

Invested more in virtual technology

19%

Invested in online payments systems

17%

Adopted a new business model

14%

Retrained workers

13%

None of the above

19%

High
influenceSome
influenceNo
influence

Invested more in virtual services

70%

26%

5%

Back to page 8

Invested more in virtual technology

71%

24%

5%

Back to page 9

Selling more products/services online

61%

33%

6%

Invested in online payments systems

55%

36%

9%

Retrained workers

57%

32%

10%

Sample = 965 small business owners

You said you made the following changes. To what
extent did the coronavirus influence these changes?

Reduced costs through efficiency savings

50%

39%

11%

More employees working at home

47%

41%

11%

More visible health and safety protocols

39%

49%

13%

Developed new products/services

43%

43%

13%

Adopted a new business model

32%

44%

25%

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25

TABLE 3
Sample = 965 small business owners
Back to page 9

TABLE 4
Sample = 635 future small business owners
Back to page 9

TABLE 5
Sample = 965 small business owners
Back to page 9

When you hire new workers in the future, approximately what
proportion of them will work remotely/from home?
100%

13%

75%

10%

50%

14%

25%

11%

None

19%

Not sure

12%

Not applicable

22%

What proportion of your workforce, approximately, do you expect to work remotely/from home?
100%

23%

75%

19%

50%

22%

25%

11%

None

10%

Not sure9%

Not applicable4%

Has the current state of the economy had any impact on the rateof innovation in your company?
Very positive impact

10%

Positive impact

19%

Neutral—no impact

38%

Negative impact

26%

Very negative impact

8%

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26

TABLE 6
Sample = 965 small business owners
Back to page 9

TABLE 7
Sample = 965 small business owners
Back to page 9

TABLE 8Sample = 635 future small business owners
Back to page 10

Which of the following best describes the impact thisinnovation has had on revenue?
More than 100% increase

7%

75% to 100% increase

19%

50% to 74% increase

25%

25% to 49% increase

20%

10% to 24% increase

19%

1% to 9% increase6%

No impact

4%

Has the current state of the economy had any impact on
productivity in your company?
Very positive impact

8%

Positive impact

20%

Neutral—no impact

38%

Negative impact

26%

Very negative impact

9%

On a scale of 1 to 5 (1 = not at all, 5 = significantly), to what extent was your decision to start a new business influenced by thecoronavirus?
1

14%

2

12%

3

31%

4

24%

5

18%

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27

TABLE 9
Sample = 635 future small business owners
Back to page 10

TABLE 10
Sample = 965 small business owners
Back to page 12

TABLE 11
Sample = 965 small business owners
Back to page 12

In what way did the coronavirus influence your decision? (Select all that apply)
I needed another source of income

35%

It accelerated my plans to start a business28%

It gave me an idea for a new product/service

22%

I saw an opportunity to sell a product/service more competitively

22%

I saw an opportunity to sell a product/service to a new market

21%

I’m filling a gap left by another business that recently closed

14%

I couldn’t find another job

12%

I was able to get funding that helped me invest a new venture

12%

Other (please specify)

2%

Did you apply for any of the following
coronavirus relief programs?

Appliedsuccessfully

Applied but
did not get

Did not
apply

SBA Economic Injury Disaster Loan (EIDL)

21%

15%

65%

Paycheck Protection Program (PPP)

30%

15%

55%

Employee Retention Credit (ERC)

17%

12%

71%

U.S. Chamber of Commerce Foundation Save
Small Business Fund

19%

14%

66%

Has your business gained or lost contractors (1099s) this year?
Gained

15%

Lost

20%

No change

65%

Contents

28

TABLE 12
Sample = 965 small business owners
Back to page 12

TABLE 13
Sample = 635 future small business owners
Back to page 13

TABLE 14
Sample = 635 future small business owners
Back to page 13

Has your business gained or lost employees (W-2s) this year?
Gained

13%

Lost

24%

No change

63%

Which of the following best describes your reason for starting a
new business?
I am making a side gig “official”

42%

I finished my education, and I’m pursuing
my dream24%

I lost my job and decided to go it alone

11%

I quit my job and decided to go it alone

9%

Other (please specify)

8%

I recently closed another business, and thisis a new venture

7%

Will your business be primarily offline, online, or a combination?
A combination

50%

Online37%

Offline13%

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29

TABLE 15
Sample = 635 future small business owners
Back to page 6
Back to page 13

TABLE 16
Sample = 965 small business owners
Back to page 14

Which of the following industries best describes the business you intend to start?
Accommodation and food services

13%

Arts, entertainment, and recreation

13%

Retail trade12%

Educational services

8%

Construction

7%

Information

6%

Administrative and support and waste management and remediation services

5%

Health care and social assistance5%

Professional, scientific, and technical services

5%

Other services (except public administration)

4%

Finance and insurance

4%

Wholesale trade

4%

Agriculture, forestry, fishing, and hunting

3%

Real estate rental and leasing

3%

Manufacturing

3%

Transportation and warehousing

2%

Management of companies and enterprises

1%

Utilities

1%

Public administration

1%

Mining0%

Do you have any plans to start another business?
Yes

18%

No

70%

Don’t know

12%Contents

30

TABLE 17
Sample = 172 small business owners
Back to page 14

TABLE 18
Sample = 965 small business owners
Back to page 14

TABLE 19
Sample = 410 small business owners
Back to page 14

When would you like to start another new business?
Within 3 months

16%

Within 6 months

24%

Within 9 months

18%

Within 12 months

15%

1-2 years

17%

2+ years

6%

Don’t know

2%

If you ever decided to close your business for financial reasons,would you consider starting another business?
Yes

43%

No

36%

Don’t know

21%

When would you start this new business?
Within 3 months

12%

Within 6 months

19%

Within 9 months

9%

Within 12 months

19%

1-2 years

18%

2+ years

8%

Don’t know

16%

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31

TABLE 20
Sample = 635 future small business owners
Back to page 15

TABLE 21
Sample = 635 future small business owners
Back to page 15

TABLE 22
Sample = 965 small business owners
Back to page 15

TABLE 23
Sample = 635 future small business owners
Back to page 16

Do you see more opportunity during this time or less opportunity?
More

58%

Less

18%

Same as before

18%

Not sure6%

How do you feel about the prospects for small businesses over the next 12 months?
Very optimistic

24%

Optimistic

48%

Neutral21%

Pessimistic

7%

Very pessimistic

1%

How do you feel about the prospects for small businesses over the next 12 months?
Very optimistic

13%

Optimistic

29%

Neutral22%

Pessimistic

27%

Very pessimistic

9%

To what extent do you agree or disagree with the following statement: “Businesses
born in a recession are more resilient.”
Strongly agree

22%

Agree

47%

Neutral—no opinion

27%

Disagree3%

Strongly disagree

1%Contents

32

TABLE 24
Sample = 965 small business owners
Back to page 16

TABLE 25
Sample = 635 future small business owners
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TABLE 26
Sample = 635 future small business owners
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When you started your business, was the economy growing or in a recession?
Growing

68%

Recession

17%

Not sure15%

How many employees (W-2s) do you plan to hire in the first 12 months?
0

18%

1-5

36%

6-10

20%

11-20

12%

21-49

6%

50-99

4%

100+

1%

Not sure3%

How many contractors (1099s) do you plan to hire in the first 12 months?
0

26%

1-5

37%

6-10

13%

11-20

8%

21-49

7%

50-99

2%

100+

1%

Not sure

7%

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TABLE 27
Sample = 965 small business owners
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TABLE 28
Sample = 635 future small business owners
Back to page 17

TABLE 29
Sample = 965 small business owners
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TABLE 30
Sample = 635 future small business owners
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If you were giving advice to a new business owner, which of the following would you recommend they do
before they open the business? (Select all that apply)
Write a business plan69%

Research the competition

55%

Find a mentor

40%

Which of the following is true for you?

Doing

Not doing

Not sure

Writing a business plan

77%

13%

10%

Researching the competition

75%

19%

6%

Finding a mentor

52%

30%

18%

If you were giving advice to a new business owner, which of the following would you recommend they gethelp with? (Select all that apply)
Setting up financial systems

63%

Choosing a business structure

60%

Registering the business

50%

Choosing a business name32%

Creating a logo

29%

How are you appoaching the following?

On my own

With help from an expert

Not sure

Choosing a business name

76%

18%

7%

Creating a logo

53%

36%

12%

Choosing a business structure

50%

43%

7%

Registering the business

44%

44%

12%

38%

53%

9%

Setting up financial systems

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TABLE 31
Sample = 965 small business owners
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TABLE 32
Sample = 635 future small business owners
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When you started your business, what were your top three financial priorities?
Managing expenses

66%

Getting paid

51%

Setting prices for products/services

50%

Setting up an accounting system

30%

Tax compliance28%

Setting up payroll

26%

Getting funding

25%

Setting up a payments system

18%

Other (please specify)

6%

When you start your new business, what will your top three financial priorities be?
Managing expenses

54%

Setting prices for products/services

52%

Getting paid

42%

Getting funding

36%

Tax compliance

36%

Setting up a payments system

32%

Setting up an accounting system

27%

Setting up payroll

20%

Other (please specify)

2%

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TABLE 33
Sample = 965 small business owners
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TABLE 34
Sample = 635 future small business owners
Back to page 20

If you were giving advice to a new business owner, which of the following would you recommend they buy
software for? (Select all that apply)
Expense tracking

58%

Invoicing51%

Payroll

50%

Bill payments49%

Accepting payments

48%

Inventory

41%

Estimates

23%

Other (please specify)

6%

How do you intend to manage thefollowing financial processes?

Manually

SoftwareNot sure

Expense tracking

27%

63%

10%

Invoicing

25%

63%

12%

Bill payments

29%

60%

10%

Accepting payments

28%

60%

12%

Payroll

27%

54%

19%

Inventory

36%

51%

13%

Estimates

34%

49%

17%

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TABLE 35
Sample = 965 small business owners
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TABLE 36
Sample = 965 small business owners
Back to page 21

Looking back to when you started your business,
what are your views on the timing of the following software purchase decisions?

ToolateRight time

Too early

Neverpurchased

Expense tracking

14%

56%

9%

21%

Inventory

11%

48%

11%

31%

Invoicing

10%

61%

9%

20%

Estimates

9%

46%

11%

35%

Accepting payments

9%

63%

9%

20%

Payroll

8%

57%

9%

26%

Bill payments

7%

65%

8%

20%

When you started your business, what were your top three operational priorities?
Finding customers

75%

Finding suppliers

43%

Complying with regulations

43%

Finding workers

41%

Investing in the right technology

38%

Setting up a website

33%

Hiring an accountant

22%

Other (please specify)

6%

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TABLE 37
Sample = 635 future small business owners
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TABLE 38
Sample = 965 small business owners
Back to page 21

When you start your new business, what will your top three operational priorities be?
Finding customers

63%

Setting up a website

58%

Finding suppliers

43%

Investing in the right technology

41%

Complying with regulations

41%

Finding workers

33%

Hiring an accountant

20%

Other (please specify)

1%

If you were giving advice to a new business owner, which marketing systems would you
recommend they prioritize in the first year of their business? (Select all that apply)
Business website

55%

Google business listing37%

Building an email list

35%

Business Facebook page

34%

Google advertising

32%

Facebook advertising

32%

Business LinkedIn page

25%

LinkedIn advertising

20%

Instagram advertising

19%

YouTube advertising

17%

Business Instagram page

17%

Business Twitter account

14%

Twitter advertising

13%

Business YouTube channel

12%

Other (please specify)

9%

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TABLE 39
Sample = 635 future small business owners
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TABLE 40
Sample = 635 future small business owners
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Which of the following marketing channels do you intend to prioritize in the first year of
your business? (Select all that apply)
Business website

47%

Facebook advertising

43%

Google advertising

40%

Business Facebook page

38%

Instagram advertising

33%

Building an email list

30%

YouTube advertising30%

Google business listing

29%

Business Instagram page

29%

Business YouTube channel

23%

LinkedIn advertising

20%

Twitter advertising

19%

Business LinkedIn page

19%

Business Twitter account

17%

Other (please specify)

4%

Do you have a contingency plan prepared if things don’t work out?
Definitely yes

37%

Probably yes

39%

Might or might not

18%

Probably not

5%

Definitely not

1%

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TABLE 41
Sample = 635 future small business owners
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TABLE 42
Sample = 965 small business owners
Back to page 5

How would you rate your knowledge or skills in
the following areas:

StrongAverage

Weak

Sales

41%

47%

12%

Negotiation

40%

44%

16%

Business planning

40%

49%

11%

Finance

37%

49%

15%

Delegation

36%

48%

16%

Marketing

36%

51%

13%

Which of the following industries best describes your business:
Professional, scientific, and technical services

14%

Construction

13%

Retail trade

12%

Other services (except public administration)

10%

Finance and insurance

7%

Accommodation and food services

7%

Arts, entertainment, and recreation

6%

Real estate rental and leasing

6%

Health care and social assistance6%

Manufacturing

4%

Educational services

4%

Wholesale trade3%

Information

2%

Agriculture, forestry, fishing, and hunting

2%

Transportation and warehousing

2%

Administrative and support and waste management and remediation services

2%

Management of companies and enterprises

1%

Public administration

0%

Mining0%

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