Millions of Americans — 54% or 145 million to be precise — have “seriously considered starting a business,” according to recent research released by Gusto. Entrepreneurial desire is especially strong (66% each) among Gen Z and millennials. And yet, Nich Tremper, head of Gusto Insights and senior economist, writes that only one-third of these folks are currently working on actually getting started.
As a veteran of the go-go era of startup entrepreneurship, when millions of people took the plunge, despite not having nearly as many resources as there are today, I was a bit surprised by this stat.
What’s holding people back? Tremper says, “People are drawn to entrepreneurship by the opportunity to pursue a passion, control their schedules, and build financial security for their families.” But their “uncertainty” about how to start keeps them from reaching their business goals.
More specifically, the research shows that “process and knowledge gaps” are the primary obstacles keeping 28% of wanna-bes from getting started. Nearly half (41%) say they’d start a business sooner if they had “guided support” or “had access to a service that walked them through key setup tasks.” If this is what’s holding you back, you can get that kind of guidance by contacting SCORE (free mentorship) or a Small Business Development Center.
Why People Want to Start Businesses
The desire for more freedom and agency in their working lives is a prime motivator for many aspiring small business owners. The most common reason cited was “turning a passion into a business” (30%), followed by the ability to control their schedules (26%), building long-term financial security for their families (24%), and wanting to stop working for someone else (21%).
Frankly, I don’t think starting a business out of passion is a sound foundation for success. Passion may inspire you to start a business, but it won’t necessarily convince customers to buy what you’re selling. You still need a market, a business model, and a realistic path to profitability.
Using AI As an Advisor
Many aspiring entrepreneurs are using AI as an advisor in their planning process (43%). Among that group, they use AI for:
- 37%: Investigating legal requirements
- 37%: Estimating startup costs
- 34%: Asking if their ideas are worth pursuing
- 28%: Seeking encouragement
AI has proved helpful—about two-thirds of the aspiring business owners say AI helped them make a different choice than they originally intended.
Getting Started
Not everyone in the study was stuck. Even those who hadn’t yet started report they’ve written a business plan or outline (39%) and researched a legal structure (37%). Among those who were actively pursuing a startup, 23% opened a business bank account or credit card, 22% registered a business name or applied for a license, and 19% have applied for or obtained an employer identification number (EIN).
Rieva Lesonsky is the founder of Small Business Currents, a content company focusing on small businesses and entrepreneurship. You can find her on Twitter @Rieva, Bluesky @Rieva.bsky.social, and LinkedIn. Or email her at Rieva@SmallBusinessCurrents.com.
Photo courtesy Getty Images for Unsplash+

