What will small business ownership look like next year? The Intuit QuickBooks Entrepreneurship in 2024 Report has some answers.
When asked how they plan to drive growth, the small business owners surprisingly didn’t rank getting funded in their top three plans. First, they intended to hire skilled workers, followed by investing in social media and e-commerce.
There were some generational differences in how the entrepreneurs planned to boost revenues. Most (88%) Generation Z business owners said they wanted to expand their e-commerce and/or physical locations, compared to 66% of Gen X and baby boomers. And while 76% of Gen Z and 80% of millennial entrepreneurs expect to hire in 2024, only 58% of Gen X and boomer business owners plan to do the same.
A separate survey from Intuit—the 2023 Intuit QuickBooks Small Business Index Annual Report—showed how deeply small business owners relied on credit cards to manage cash flow. Of those surveyed, 83% have relied on a credit card to manage their business finances.
In general, 70% of those surveyed use personal credit cards instead of business ones. However, businesses with employees are more likely to use business credit cards.
And:
- 59% of the small business owners use credit cards as “an emergency or temporary source of funding”
But:
- 24% don’t believe they will be able to pay off their credit card balances in 2024 without paying interest
- 51% have used half or more of their available credit limit
- Over 40% say the APR on their business credit cards was 20% or higher.
Startups
Overall, 23% of those surveyed are considering starting a business in 2024. Gen Z is leading the pack of wanna-be entrepreneurs, with 28%, followed by 26% of millennials, 20% of Gen Xers, and 10% of boomers.
Startup entrepreneurs are eagerly awaiting their tax returns—32% of the startups since 2020 funded their companies with their tax returns. And 65% say a smaller return in 2024 would make it harder to start a business or launch a side hustle.
Defining Success
So, what does success look like for these entrepreneurs? According to the report:
For 42% of small business owners, increasing revenue is their primary goal
62% of the side-hustle business owners surveyed would quit their day job if they could earn $100,000 a year.
Millennials say they need to earn $288,000, on average, to feel successful. Boomers would be satisfied earning $126,000 on average.
2024 stock image by Chonlatee42/Shutterstock
