43 percent of Americans plan to start their own business in 2022 and one-third are first time entrepreneurs, new survey finds
In the summer of 2021, a record 4.3 million Americans voluntarily quit their jobs in what some are calling the beginning of the “Great Resignation.” It was one of the highest “quit rate” ever recorded since the government started keeping track two decades ago. The situation got worse by the end of 2021 as over 20 million people quit their jobs in the second half of 2021, according to the government’s jobs report released in the first week of 2022.
However, what the government’s jobs report didn’t tell us is that a record number of Americans are also planning to venture on their own. Following the two-year pandemic, millions of Americans now want to be their own boss instead of working for others.
Digital.com, a leading independent review website for small business online tools, products, and services, recently published a survey report this month to examine entrepreneurship in America and key factors influencing startups. The study generated responses from thousands of adults and highlights trends across various industries.
The survey of 1,250 American adults found 2 in 5 Americans plan to start a business this year. Whether or not these plans turn to action remains to be seen, but what’s clear is the exploding interest in entrepreneurship.
• 43% of Americans plan to start a business this year
• 55% of entrepreneurs who plan to start a business will quit their current job within the next year
• One-third of 2022 startups come from first-time entrepreneurs
• Popular industries for new businesses include retail, business & finance, and computer & IT
• 1 in 8 entrepreneurs have raised $100k or more for a new venture; 1 in 10 have invested more than $100k of their own money
The study shows that 2 in 5 people plan to start a business this year. Forty-seven percent of Americans who want to start a business are currently working for an employer, 34 percent are self-employed, and 19 percent are unemployed. Fifty-five percent of aspiring new business owners will leave their current jobs within the next 12 months.
According to the survey, most future business owners who plan to leave their jobs are from the health care, construction, education, and finance industries. Employees in the health care and social assistance industry account for 8 percent of aspiring entrepreneurs. Construction workers and education employees represent 8 percent and 7 percent of people who want to start a business respectively.
Sixty-two percent of respondents say they want to start a new business to earn more money. Forty-eight percent of entrepreneurs want to be their own boss, 47 percent want to pursue a passion, and 44 percent want more flexible work hours. Likewise, 31 percent of respondents want the flexibility of working remotely, while 29 percent are dissatisfied with their current jobs.
Research findings indicate that retail, business, finance, and computer and IT are the most popular industries for new business owners. Fifteen percent of aspiring entrepreneurs will launch a retail shop, 11 percent will start a business and finance company, and 10 percent want a startup in the computer and IT industry. Women are more likely to venture into retail and personal care services, but female entrepreneurs tend to start business & finance companies at the same rate as men. Thirteen percent of aspiring founders will focus on business & finance. In contrast, 18 percent of people over 35 plan to start a retail business.
Digital.com’s research team developed this report to gain insight into the startup boom and entrepreneurship in America. The survey was created and paid for by Digital.com and administered by Pollfish, the online survey platform on January 8, 2022. To access the complete report, please visit: https://digital.com/2-in-5-americans-plan-on-starting-a-business-in-2022/