Small Business Trends | 2023 Small Biz Survey

Trend #1: Starting a Small Business Is Worth The Effort

Small business owners aren't backing down. Nearly all believe the blood, sweat, and tears they've poured into their ventures have been worth it. It confirms what we already know at Incfile — entrepreneurship is extremely rewarding!

An overwhelming number of entrepreneurs, 72%, say what they do is challenging but worthwhile.

A happy-go-lucky 25% report that owning a business is both fun and easy in their experience. Only 22% say owning their business is not worth the sacrifice and hardship.

When you break down the demographics, men were slightly more likely than women to say business ownership is easy. Entrepreneurs (ages 18-34) were three times as likely to respond that business ownership is painful and not worth it.

Trend #2: Small Business Owners and Entrepreneurs Choose Passion

We often hype the freedom and control that comes with being a small business owner, but the truth is, that's not why most of them took the plunge.

A mighty 41% of our survey respondents say their passion is why they started their own business. While 34% say they had no choice but to strike out independently due to financial constraints.

While the dream for many seemingly is to be the boss, a mere 15% went into business for themselves to call the shots. And don't discount the power of encouragement from loved ones; for 10%, it put them on the entrepreneurial path.

Interestingly, women were more likely than men to want to be their own boss, while Black respondents were likelier to say their passion was their primary motivation.

And there’s more to share about passion. A determined 48% believe that combined with drive, it’s essential for success. A pragmatic 39% say having the right tools and resources is crucial. And a mere 13% think entrepreneurship is only for some.

Trend #3: Entrepreneurs Would Do Things Differently

Our small business owner survey showed that if entrepreneurs could go back in time —  they would also do a few things differently. These include:

• 65% would do more research and prep work before starting their business.
• 10% would choose a different business type that better fits their needs or lifestyle.

A whopping 23% said they wouldn't change a thing, and only 5% reported that if they could go back in time, they wouldn't start a business in the first place.

Trend #4: They Share the Same Traits

We asked small business owners to share the top traits fueling their journey and to choose as many as they wanted. Our report debunks the widespread belief that entrepreneurs are risk-takers. 

The majority, 73%, say their top trait is being highly motivated, followed by those who identify as lifelong learners (54%). Fast learners weighed in at 53%, followed by risk-takers (51%) and creatives (47%).

Small Business and Entrepreneur Challenges

Owning a small business is a demanding and rewarding journey — but America's sharp and relentless entrepreneurs are up for the challenge.

Even so, our survey found that most small business owners ran into the same challenges while pursuing their entrepreneurial dreams.

Challenge #1: Small Business Owners Can't Find Their Community

Everybody needs a helping hand now and again. Or at least someone to go to for advice.

Unfortunately, almost one-third (31%) of those polled told us they could not name any place online they trusted for day-to-day small business support.

For those who stated that they had found support online, it was mostly through bland and impersonal websites that didn't offer any sense of community. These websites included:

• IRS.gov (22%)
• SBA.gov (21%)
• Visa.com (14%)
• Other (12%)

And trust us when we say that community matters a lot.

Entrepreneurs who are part of a small business community were nearly 60% more likely to report doing better this year than last.

Challenge #2: Too Much Stress, Not Enough Money

Another major challenge our survey respondents faced included dealing with a high amount of small business owner stress and having trouble meeting financial needs.

In fact, they stated that they wanted less stress and more money — don't we all? This highlights their particular challenges in today's economy and the importance of mental health.

According to the survey:

• 47% want to reduce stress and other mental health concerns.
• 47% crave more funding opportunities and grant access.
• 37% wish for less bureaucracy and paperwork.
• 33% long for more time off and relaxation.
• 16% are having challenges hiring the right people.
• 20% are struggling with community support.

Challenge #3: Prepping For Future Threats

The last major challenge our survey respondents noted was accurately guessing and preparing for issues they might face in the future.

According to our survey, the biggest threats to their business's success include:

• Lack of passion (29%)
• Lack of support (25%)
• Shortage of resources (24%)
• Poor or inadequate planning (22%)

Black business owners were more likely than other minority groups to point to a lack of support or resources as the biggest threat to their business. Poor planning (22%) was also cited for business failure.