21st Century Student FinLit -Getting Personal SW

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This chapter continues with the theme of building wealth . Owning your own business is like investing in yourself, and a business started and run by you just might be an excellent investment! Small Biz Stats. The definition of a small business is a commercial enterprise with 500 or fewer employees , which really doesn’t seem that small. However, over half of all small businesses are home- based and employ just one person . In 2015, the five states with the highest small business startups were Montana, Wyoming, North Dakota,

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Entrepreneurial America There are 28,443,856 small businesses in the U.S. Over half employ just one person. Source: SBA

Colorado, and Vermont. These days, the most popular small business start ups are software and mobile app development firms, green tech, cyber-security, wearable technology, and education technology companies . Retail e-commerce business are also popular start ups.

SMALL BIZ STATS

How small is “small”? What’s the smallest?

500 or fewer employees.

Over half are home-based and employ just one person. Montana, Wyoming, North Dakota, Colorado, and Vermont. PRODUCT PREVIEW II. Who Starts a Business? Traits of a Successful Small Business Owner. If 50% of the American workforce is employed by a small business, it’s pretty obvious that Americans have an entrepreneurial spirit. What does it take to be successful? Many experts have weighed in on the traits and skills that make a person more likely to succeed as a small business owner. Here are some key traits: Perseverance. Small businesses have their share of ups and downs. It can take several years until a business is profitable. Successful business owners don’t decide the business is doomed every time there’s a downturn and business is slow. To them, challenges reveal opportunities to recommit to their vision, adapt and refine their product or service . Successful business owners don’t throw in the towel when the going gets tough. Hard worker. If you have a less than stellar work ethic, owning your own business may not be for you. You’ve got to bring your game every day and be ready to put in long hours. In fact, a recent report indicates that one of the main reasons that small business owners give up on their business is an underestimation of the amount of time required to manage it. Risk Taker. Starting a business is a risk many people are not comfortable taking. One obvious risk is to your reputation. You have to be willing to “put yourself out there,” risking public failure. Another risk is financial. Starting a business requires an investment of hard earned cash and the risk of loss of that investment. A solid plan, preparation, and an unwavering belief in yourself and your product or service, go a What states have the most start up small businesses? What are popular small biz start ups? Software and mobile app development firms, green tech, cyber-security, wearable technology, and education technology companies. Retail e-commerce is also popular.

THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY 221

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