More than half of entrepreneurs launched their companies with less than $25,000 and a third started with less than $5,000, according to a recent survey of 600 small-business owners from financial services and technology platform Kabbage.
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The three types of businesses that need the least amount of startup capital to afloat during the first six months are accounting businesses, online retail and construction and landscaping. Forty-five percent, 44 percent and 39 percent, respectively, said they only needed $5,000 or less during that very crucial period.
Sixty-five percent of entrepreneurs reported that they didn’t feel that they had enough money to start their companies, and 93 percent said they’d predicted a run rate of under 18 months. Eighty-two percent said they didn’t have enough experience to run their companies. But despite those feelings of imposter syndrome, Kabbage noted that all of those businesses are currently operating today.
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