The U.S. economy continues to be hit hard by the COVID-19 crisis. Businesses across industries, geography and size are impacted. Individuals forced to make career changes have taken this opportunity to open small businesses, but many have a need for guidance and may not have the resources to weather the crisis.
BizFilings, part of Wolters Kluwer, surveyed nearly 600 current small business owners and future owners across companies of various industries to gain insight into their motivations for starting a business and the challenges they face beyond day-to-day operations. The BizFilings Small Business Survey 2020 provides guidance and best practices for both seasoned and new small business owners.
“Small businesses have a tremendous impact on local economies. They bring growth and innovation, as well as significant employment opportunities,” said George May, Vice President and Small Business Segment Lead for Wolters Kluwer BizFilings. “Choosing to start and run a small business can be a momentous and rewarding undertaking. This survey illustrates that small businesses can thrive when they focus on their areas of expertise, while leveraging additional expert resources to fill in business gaps.”
- Location matters: 57% of owners are planning for success by diversifying with a mix of online and brick-and-mortar operations.
- Fear of failure: 39% of new business owners cite fear of failure as a chief concern. “The work and time it takes to get off the ground” and “lots to do, more than I thought” were common sentiments.
- Business registration: 60% say they registered their business or plan to do so to ensure regulatory compliance, while 45% believe it inspires customer confidence.
- Asking the right questions: 31% of owners worry about correctly complying with laws, regulations and tax requirements. “The use of resources for assistance can make all the difference in how a business is run and grows,” said one business owner.
- Remote workers: Although not widespread at the time of survey, the current crisis has seen the popularity of telework skyrocket, introducing a whole new set of compliance concerns and shining the spotlight on crisis planning.
BizFilings is a leader in online incorporation services for small businesses. Over the past twenty-five years, BizFilings has incorporated hundreds of thousands of businesses. BizFilings, part of Wolters Kluwer, offers small business owners a full suite of services to incorporate, form an LLC, Benefit Corporation, and other business structures.