MOUNTAIN VIEW, Calif.–(BUSINESS WIRE)–Business formation continues to be at historically high levels, with concerns about the cost of living and inflation motivating Americans to pursue small business. New research from Intuit QuickBooks shows that this trend will continue into 2023 and of those survey respondents who say they plan to start a small business, two-thirds (66%) point to inflation and the need for additional income is after their decision. These findings and more are highlighted in the QuickBooks New Business Insights reportbased on a recent survey of 15,200 American adults commissioned by Intuit (NASDAQ: INTU), the global financial technology platform that makes QuickBooks, TurboTax, Mint, Credit Karma, and Mailchimp.
The report also discovered several geographic trends related to business formation and where small business economic activity in the United States flourished in 2022 and is expected to increase in 2023:
- Business formation continued to hover at a historically high level in 2022 with several states leading the pack: The states where the most residents reported starting a new business were Delaware (23%), Hawaii (22%), New Jersey (21%), Virginia (21%), and Maryland (20%).
- These states are poised to lead the country in small business formation in 2023: The states with the highest number of residents who said they plan to start a business in the next year are New Jersey (42%), Florida (40%), Hawaii (40%), California (39%), Louisiana (38%), Maryland (38%), Georgia (37%), Nevada (37%), New York (37%), Delaware (37%), and South Carolina (37%).
- While small business formation is at historically high levels, many of these new ventures will be aftershocks: Creating a new small business as a side hustle continues to increase in popularity as people look to supplement their income amid inflation. Almost two-thirds (65%) of respondents indicated that they would continue to work for other employers at the same time as running their new business ventures, suggesting that side hustles are increasing in popularity as in -people look for more income opportunities, particularly amid inflation. .
“As we navigate the post-pandemic small business landscape, we are seeing an increase in business formation as people look for new sources and opportunities of income in a changing economy,” said Alex Chriss, executive vice president and general manager of Intuit’s Small Business and Loan. -Employed Group. “With the increase in the creation of small businesses, it is imperative that we support them with the tools they need to run and grow their business successfully, especially since the majority of them approach e-commerce, solutions of online loans, and digital tools to acquire and manage customers. cash flow.”
Technology, and its ability to simplify many aspects of starting and running a business, continues to be a major driver of small business startups.
- Technology has made it easier than ever to start a business: 45% of those surveyed indicated that the opportunities that technology platforms allow is a main reason for deciding to start a business.
- E-commerce opportunities have been identified as the strongest growth opportunities: 46% said they will pursue an e-commerce business as their new business venture and 37% plan to pursue employment in the creator economy, driven by apps and social media services.
- Access to finance is most important for new business owners: While the majority of those surveyed (73%) indicated that they would use their own money or savings to start their businesses, roughly one in six (17%) said they would look to -online lenders as an option, and more than one in five. (23%) consider a traditional bank.
This report and additional research and insights from Intuit QuickBooks are available here.
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Source: Intuit Inc.