How Much Money Does It Take To Start A Small Business?

LANSING – Small business owners use an average of $10,000 to start their businesses, according to a survey published by the Small Business Association of Michigan.

While most small business owners would do it again if given the chance to start a small business, the Index illustrated key findings around the issue of start-up capital. Many small business owners started businesses with their own money, and with very small amounts. Seventy-three percent of business owners surveyed primarily funded their businesses with their own personal savings, while 37 percent obtained loans and lines of credit. More than half of those surveyed (53 percent) indicated they would have had an easier time had more money been available at the outset.

The Wells Fargo/Gallup Small Business Index study was released by Wells Fargo & Company.

The study also revealed a need for business knowledge and information. Only thirty-one percent of small business owners surveyed started with business plans. Forty-nine percent say they would have had an easier time had they asked for more advice from experienced business owners, while an additional thirty-nine percent indicated a better understanding of financial management would have been an asset.

?The reality of owning a small business is both exciting and a bit scary,? said Rebecca Macieira-Kaufmann, executive vice president and head of the Small Business Segment for Wells Fargo. ?The survey results provide us with real insight into what it takes to start and run a small business, and what many small business owners wish they had at the onset ? more capital and more financial management education.?