What’s stopping Aussies from starting a business?

More than half of Australians have dreamed of running their own business, but most never make the leap, because fears hold them back from getting started.

A new national survey from AnyBusiness.com.au has revealed the real reasons people are holding back, and the myths that might be keeping millions from becoming their own boss. Topping the list is money worries.

What’s holding back entrepreneurship?

According to the survey of 2,500 Australians, 52 per cent say they’ve thought about starting or buying a business, but only 14 per cent have actually done it. The number one roadblock? Cold hard cash.

A whopping 43 per cent of respondents said they don’t have enough savings or access to finance, while another 26 per cent fear their business might flop. Fourteen per cent admitted they simply wouldn’t know where to start, and 8 per cent blamed too much red tape.

“It’s simply not true that you need hundreds of thousands in cash,” said AnyBusiness Managing Director Mary Tamvakologos.

“Many profitable small businesses are available for under $100,000, and vendor or bank finance can make up the difference. People overestimate the entry cost, that’s the biggest mental roadblock.”

Confidence gap holding Aussies back

When asked how confident they’d feel running a business, only 11 per cent said they were very confident, while almost a quarter confessed they weren’t confident at all. However, if money wasn’t a barrier, 62 per cent said they’d consider starting or buying a business within a year.

So what’s the dream business? Most Aussies would love to own a café, retail shop or food business (29 per cent), followed by an online store (24 per cent) or a service-based business like cleaning, trades or beauty (17 per cent).

The myths stopping future entrepreneurs

Tamvakologos says fear of failure is another big myth holding back business ownership.

“Buying an established business with a customer base and cash flow is often less risky than starting from scratch,” she said. “The key is proper due diligence — checking financials, leases and turnover — not luck.”

As for complaints about red tape, she says most business setup is pretty straightforward.

“Every industry has requirements, but most are checklist-based: ABN, insurance, licences. A 30-minute call with an accountant or broker usually clears up what’s needed.”

With the economy cooling, Tamvakologos believes now could actually be a great time to buy a business.

“Economic slowdowns often mean better deals and more motivated sellers. For smart buyers, it’s one of the best times to enter the market.”

Aussies need more help to get started

When asked what would make them more likely to take the plunge, 38 per cent of Aussies said better access to affordable business loans would help, while 27 per cent wanted a simple, step-by-step guide.

“Australians have the ambition but not the roadmap,” acknowledged Tamvakologos.

“Most people want to be their own boss, they just don’t know how to start or think they can’t afford to. We want to change that by giving would-be buyers the right information, listings and expert tools to make ownership achievable.”

Need more advice? check out our Getting Started hub for more info.

This post first appeared on Business Builders. You can read it here.

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