Funds Required For New Startups Average $10,000

The next time that someone tells you it takes big money to start a business, don’t believe them. The newest Wells Fargo/Gallup Small Business Index confirms that it requires relatively small amounts—an average of $10,000—to start a new business. Wells Fargo asked a nationwide sample of 600 business owners to discuss how they financed their firms. Seventy-three percent of respondents used their own money to start their first business; 37% obtained loans or lines of credit.

More than half (53%) feels their business development would have been smoother with more funding at the outset. New business owners also seem to have a strong hunger for better information and support. Forty-nine percent would have liked to have advice from seasoned business owners before pursuing the entrepreneurial path. An additional 37% would have liked to have a better understanding of financial management.

To learn more about the August 2006 results of the Wells Fargo/Gallup Small Business Index, visit https://www.wellsfargo.com/press/20060815_Money?year=2006.

(Many thanks to the National Dialogue on Entrepreneurship http://www.publicforuminstitute.org/nde for passing this along. Russ)