Small Business

Small Businesses by the Numbers

America’s estimated 25 million small businesses are essential to the national economy. They employ half of all private sector workers and account for as much as 80 percent of the country’s job creation. This could explain why banks and lenders are so willing to support new ventures; although 31 percent of small business owners opt to borrow at least some of their capital from family and friends, a full 75 percent of startup capital comes from credit cards, bank loans and lines of credit. But startup funding and manpower may not be enough to sustain some businesses; while 70 percent of new small businesses survive at least two years, only half survive the first five years and just a quarter persevere for 15 years or longer.

Personal Debt While Running a Business

Starting a business is a tough task, but it’s easier when you’re on stable ground financially. As much as you try to keep personal and business finances separate, you may end up with some overlap, especially if you used personal capital to open your business. Therefore, decreasing your personal debt is a good step to take, both for your sake and for your company’s. When you have little or no debt, you can put more capital into your business. Additionally, you’ll go to work with less stress and be able to devote more energy to the company. Consider debt relief options like debt settlement.