Money The Entrepreneur Dream Gap Study
The dream of becoming your own boss seems to be thriving across the U.S. With more than 36 million small businesses in the states, small businesses account for an impressive 99.9% of all businesses nationwide. [1] U.S. Small Business Administration Office of Advocacy, 'Frequently Asked Questions About Small Business 2026', 2026 https://advocacy.sba.gov/2026/02/03/frequently-asked-questions-about-small-business-2026/ Together, they employ more than 62.3 million people, although 82% are solo ventures, highlighting just how many Americans are choosing to go it alone. [1] U.S. Small Business Administration Office of Advocacy, 'Frequently Asked Questions About Small Business 2026', 2026 https://advocacy.sba.gov/2026/02/03/frequently-asked-questions-about-small-business-2026/ [2] SellersCommerce, 'United States Small Business Statistics (2026 Data)', 2026 https://www.sellerscommerce.com/blog/small-business-statistics/
But while the entrepreneurial dream may be alive and well, turning it into a successful business is no easy feat. New businesses are often reported to face a failure rate of as high as 90%, with around one in five failing within their first two years. [2] SellersCommerce, 'United States Small Business Statistics (2026 Data)', 2026 https://www.sellerscommerce.com/blog/small-business-statistics/
For many aspiring entrepreneurs, starting a business can be exciting and deeply rewarding. However, the reality can also bring significant pressure, uncertainty, and stress, particularly when trying to stay afloat in an increasingly demanding economy.
So, what motivates Americans to take the leap and become their own boss, and what holds others back?
To uncover the dreams, motivations, and challenges behind entrepreneurship, a survey conducted on behalf of Self Financial asked 1,327 U.S. adults about their desire to work for themselves.
The survey explored everything from the biggest barriers to starting a business and the motivations driving aspiring entrepreneurs to the lessons learned by those who have already taken the plunge.
Key findings
- More than half (53%) have dreamed of starting their own business, while 69.8% of this group have already taken the leap and started one.
- Securing financing is the biggest challenge facing new business owners (31.3%).
- Almost two in five (37.7%) already have a clear business idea, while 27.4% have several ideas they would like to pursue.
- Financial independence is the top motivation for starting a business, cited by 39.2% of respondents.
- Respondents estimate they would need $33,300 to start their own business, while 43.4% say a lack of funding or capital is the biggest reason they have not started one.
- Losing savings or going into debt is the biggest fear associated with starting a business, cited by 39.2% of respondents.
How many people have already started their own business?
The entrepreneurial dream is clearly alive in the U.S. When asked whether they had ever dreamed of starting their own business, more than half (53%) of respondents said they had.
More than half (53%) of participants have dreamed of starting their own business.
However, having the dream and turning it into reality are two different things. Of those who had dreamed of starting a business, 69.8% had actually taken the plunge and started one, leaving 30.2% yet to turn their entrepreneurial ambitions into reality.
For those who have already made the leap, the vast majority are still going strong. An impressive 85.6% said they continue to run their business today.
Earning more money was the top motivation for starting a business (35.3%)
For those who have already started a business, money was the biggest driver behind taking the leap. More than a third (35.3%) said their main motivation for starting a business was the opportunity to earn more money.
Becoming their own boss was the second most popular motivation, cited by 24.7%, while 17% said they wanted to turn their passion or interests into a business.
| What are the main motivations for starting a business? | ||
|---|---|---|
| Rank | Reason for starting a business | Percentage of respondents who own their own business |
| 1 | To earn more money | 35.3% |
| 2 | To be my own boss | 24.7% |
| 3 | To pursue a passion or interest | 17% |
| 4 | To achieve a better work-life balance | 11% |
| 5 | I identified a market opportunity | 8.6% |
| 6 | Starting a family business | 2.9% |
| 7 | I was unable to find suitable employment | 0.2% |
| 8 | Other | 0.2% |
On the other hand, some motivations were far less common among business owners. Just 8.6% said market opportunity was a key reason for starting their business, while 2.9% were motivated by starting a family business. Only 0.2% said they started a business because they were unable to find suitable employment.
Securing finance labeled as the biggest challenge to new businesses
While there are plenty of reasons to start a business, turning an idea into a reality can come with its own set of challenges. When asked about the biggest obstacles they faced when starting their business, securing enough finance came out on top, with 31.3% of business owners identifying it as their biggest challenge.
Securing finance is the biggest challenge facing business owners (31.3%).
Finding customers was the second biggest challenge, cited by 22% of respondents, while 17.2% said managing cash flow was the biggest hurdle they faced.
| What are the biggest challenges when starting a new business? | ||
|---|---|---|
| Rank | Biggest challenge when starting a business | Percentage of respondents who own their own business |
| 1 | Securing finance | 31.3% |
| 2 | Finding customers | 22% |
| 3 | Managing cash flow | 17.2% |
| 4 | Competition | 11.4% |
| 5 | Work-life balance | 10.2% |
| 6 | Managing employees | 7.3% |
| 7 | Legal or administrative requirements | 0.4% |
| 8 | Other | 0.2% |
In comparison, business owners were far less likely to identify legal or administrative requirements (0.4%), managing employees (7.3%), or maintaining a healthy work-life balance (10.2%) as their biggest challenges when starting their own business.
Despite these hurdles, the overall experience of entrepreneurship appears to be a positive one. When asked whether they would still choose to start their business if they could go back in time, almost half (47%) said they definitely would. Just 5% said they definitely would not.
A further 32.8% said they probably would still start their business, while only 5% said they probably would not. This means that almost four in five (79.7%) would either definitely or probably make the same decision again.
Business owners report their income is now much higher compared to before starting their business
With 35.3% of respondents saying that earning more money was their main motivation for starting a business, it appears this goal has become a reality for many.
Almost two in five business owners (38.3%) said their income is much higher since starting their business. A further 26.9% reported that their income is somewhat higher, meaning almost two-thirds have seen their earnings increase to some degree.
Meanwhile, 18.8% said their income is about the same, while 10.1% reported that it is somewhat lower and 5.8% said it is much lower.
Over four-fifths (82%) would recommend starting a business to others
With 79.7% saying they would definitely or probably choose to start their business again, the survey also explored whether business owners would recommend the experience to others.
The overwhelming majority (82%) said they would recommend starting a business, including 45.3% who said they definitely would and 36.7% who probably would.
In comparison, just 4.5% said they definitely would not recommend starting a business, while 5.1% said they probably would not. A further 8.4% were unsure.
How many people dream of starting a business?
The survey has already revealed that more than half (53%) of respondents have dreamed of starting their own business. However, when asked to rate the strength of this desire on a scale of one to 10, with one representing minimal desire and 10 representing their ultimate dream, a score of 10 was the most popular response.
Almost one in five (19.3%) rated their desire to start a business as a 10 out of 10, making it the highest-rated response. At the other end of the scale, 10.4% gave their desire the lowest possible rating of one out of 10.
| How strong is the desire to start a business? | |
|---|---|
| Rating out of 10 | Percentage of respondents who don’t currently own a business |
| 1 | 10.4% |
| 2 | 9.4% |
| 3 | 12.7% |
| 4 | 9.0% |
| 5 | 14.2% |
| 6 | 4.2% |
| 7 | 5.7% |
| 8 | 9.4% |
| 9 | 5.7% |
| 10 | 19.3% |
Financial independence is the main motivation for starting a business (39.2%)
For those who dream of starting their own business but have yet to take the leap, financial independence is the biggest driving force. Almost two in five (39.2%) said their main motivation would be to become financially independent or build wealth.
Being their own boss and having greater control over their time was the second most popular motivation, cited by 18.9%. Meanwhile, 17% said they would like to turn a passion or hobby into a source of income, while 12.3% were motivated by dissatisfaction with their current job.
Creating something meaningful or making a positive impact was the least common motivation, although it was still cited by 11.8% of aspiring business owners.
The main motivation for starting a business is to become financially independent (39.2%).
For those who dream of starting a business but have yet to take the plunge, many already have a clear vision of what they want to pursue. More than a third (37.7%) said they already have one clear business idea in mind. Meanwhile, 27.4% have several ideas they would like to explore, 16.5% have one vague idea but nothing concrete, and 18.4% have not settled on an idea yet.
Almost two in five (37.7%) already have a clear business idea, and 27.4% have several to pursue.
Technology is the most popular industry for aspiring business owners
When asked which industry they would most like to start a business in, technology, software and apps came out on top, selected by 39.6% of aspiring entrepreneurs.
Food and beverage was the second most popular choice, with 22.2% interested in starting a restaurant, food truck, catering business or similar venture. Reports show that food and restaurant services account for 11%-12% of small businesses in the U.S. and are one of the fastest-growing small business industries. [3] Search Logistics, 'SMALL BUSINESS STATISTICS 2026 [US EDITION]', 2026 https://www.searchlogistics.com/learn/statistics/small-business-statistics/
Health and wellness was another popular choice, with 12.7% dreaming of starting a business in areas such as fitness, beauty, or personal care. With the global wellness economy expected to reach $9.8 trillion by 2029, aspiring entrepreneurs entering this space would be joining an already booming industry. [4] Global Wellness Institute, 'The Global Wellness Economy Hits a Record $6.8 Trillion and Is Forecast to Reach $9.8 Trillion by 2029', 2025 https://globalwellnessinstitute.org/press-room/press-releases/the-global-wellness-economy-hits-a-record-6-8-trillion-and-is-forecast-to-reach-9-8-trillion-by-2029/
Scalable startups are the most appealing business structure
When asked what type of business structure appealed to them most, 31.6% said they would like to build a scalable startup with the potential for significant growth and investment.
A further 24.5% preferred the idea of running a small business with just a few employees, while 17% planned to keep things personal by working as a freelancer.
Meanwhile, almost one in six (14.6%) said they would like to build a franchise, showing that aspiring entrepreneurs are considering a range of routes to business ownership.
What are the biggest barriers to starting a business?
For many aspiring entrepreneurs, the biggest obstacle is not a lack of ambition or ideas, but having enough money to get started. When asked why they had not yet taken the plunge, more than two-fifths (43.4%) said a lack of funding or capital was holding them back.
This echoes the experiences of existing business owners, who also identified securing finance as their biggest challenge. For those still dreaming of starting a business, finding the money to turn that dream into reality appears to be the biggest hurdle.
The biggest reason prospective business owners have not yet started a business is a lack of funding or capital (43.4%).
Economic uncertainty was the second most common barrier, cited by 17% of respondents, while 13.2% said they were reluctant to leave the security of stable employment. A further 11.3% said they simply did not have enough free time to dedicate to starting a business.
Time can be a significant barrier for those trying to build an additional source of income alongside their existing work. Research conducted on behalf of Self Financial in 2023 found that 36.3% of people with side hustles spend 6 to 10 hours per week on their additional income, while a further 28.8% spend 11 to 20 hours per week on their side hustle. This highlights just how much time and commitment can be required to build a new income stream.
Aspiring entrepreneurs estimate they would need over $33,000 to get started
The funding barrier becomes even clearer when looking at how much aspiring business owners believe they would need to get started. On average, respondents estimated that launching their own business would require $33,300.
That figure is equivalent to 47.7% of the average U.S. salary of $69,846, based on 2023 figures from the Social Security Administration. [5] Social Security, 'National Average Wage Index', 2023 https://www.ssa.gov/oact/cola/AWI.html
Respondents believe they would need $33,300 to start their own business.
Despite the financial hurdle, many aspiring entrepreneurs remain confident that they could secure the money needed. More than a third (35.8%) said they were very confident in their ability to secure the necessary funding, while a further 36.8% felt somewhat confident.
Only 9.9% said they were not confident at all in their ability to secure the funding required, while 17.5% said they were not very confident.
This confidence extends beyond funding, with many respondents also believing they have what it takes to run a successful business. Almost a third (31.4%) said they were very confident in their ability to run a successful business, while just 9.5% described themselves as very unconfident.
| Confidence level in running a successful business | |
|---|---|
| Confidence level in running a successful business | Percentage of respondents |
| Neither confident nor unconfident | 19.5% |
| Somewhat confident | 30.5% |
| Somewhat unconfident | 9.5% |
| Very confident | 31.4% |
| Very unconfident | 9.0% |
Lack of funding cited as the main barrier to starting a business
Alongside asking why participants had yet to start their own business, the survey also explored the biggest barriers standing in their way.
Once again, money emerged as a major concern. A lack of funding was the most commonly cited barrier, selected by 24% of respondents, reinforcing the financial challenges faced by aspiring entrepreneurs.
A lack of funding is the biggest barrier preventing participants from starting their own business (24%).
Fear of financial loss and limited free time were the next most common barriers, both cited by 20.5% of respondents. Meanwhile, 17.5% said a fear of failure was holding them back from taking the plunge.
Other barriers were much less commonly reported, including not knowing how to write a business plan (0.6%), legal or regulatory complexity (1.1%), and a lack of a support network (1.1%).
Losing savings or going into debt is the biggest fear when starting a business
Financial concerns also topped the list when participants were asked about their biggest fears around starting a business. Almost two in five (39.2%) said their biggest fear was losing their savings or going into debt.
Losing savings or going into debt is the biggest fear about starting a business (39.2%).
The fear of failure was also reflected in concerns about public embarrassment, with 17.5% worried about failing publicly. A further 15.6% were concerned about giving up the security or benefits associated with their current job, while 11.8% feared being unable to support their family.
Other concerns were less common, including wasting time and effort (1.9%) and not having the right skills (1.9%). The risk of bankruptcy was cited by 11.3% of respondents.
| Biggest fears about starting a business | |
|---|---|
| Biggest fears about starting a business | Percentage of respondents |
| Losing my savings or going into debt | 39.2% |
| Failing publicly / embarrassment | 17.5% |
| Giving up job security/benefits | 15.6% |
| Not being able to support my family | 11.8% |
| Risk of bankruptcy | 11.3% |
| Not having the right skills | 1.9% |
| Wasting time and effort | 1.9% |
| Other | 0.9% |
Over two-fifths say access to funding would help them to start a business
Financial concerns continue to be a recurring theme among aspiring entrepreneurs. When asked what would help them the most to finally start a business, access to funding came out on top, with 42.9% saying financial support would make the biggest difference.
Reducing the financial risk involved was another key factor, with 14.6% saying this would help them take the leap. Meanwhile, 13.7% said they would benefit most from mentorship or guidance, suggesting that financial support is not the only thing holding aspiring business owners back.
Interestingly, despite 27.4% of respondents saying they already have several business ideas they would like to pursue, having a clear and proven business idea was considered the least helpful factor. Just 0.9% said this would make the biggest difference to their decision to start a business.
Methodology
The survey was conducted on behalf of Self Financial in August 2026 and asked 1,327 U.S. adults from a range of backgrounds questions relating to dreams, motivations, and challenges behind entrepreneurship.
For some questions, respondents could select more than one option; therefore, the results do not add up to 100%.
The self-identified respondent demographics of the survey were:
Age:
- 18-28 - 26.1%
- 29-44 - 66.4%
- 45-60 - 6.5%
- 61-79 - 1.1%
Gender:
- Female - 68.7%
- Male - 30.3%
- Non-binary - 0.8%
- Prefer not to say - 0.2%
Sources
- [1] U.S. Small Business Administration Office of Advocacy, 'Frequently Asked Questions About Small Business 2026', 2026 https://advocacy.sba.gov/2026/02/03/frequently-asked-questions-about-small-business-2026/
- [2] SellersCommerce, 'United States Small Business Statistics (2026 Data)', 2026 https://www.sellerscommerce.com/blog/small-business-statistics/
- [3] Search Logistics, 'SMALL BUSINESS STATISTICS 2026 [US EDITION]', 2026 https://www.searchlogistics.com/learn/statistics/small-business-statistics/
- [4] Global Wellness Institute, 'The Global Wellness Economy Hits a Record $6.8 Trillion and Is Forecast to Reach $9.8 Trillion by 2029', 2025 https://globalwellnessinstitute.org/press-room/press-releases/the-global-wellness-economy-hits-a-record-6-8-trillion-and-is-forecast-to-reach-9-8-trillion-by-2029/
- [5] Social Security, 'National Average Wage Index', 2023 https://www.ssa.gov/oact/cola/AWI.html
