What’s in store for small business ownership next year? The Intuit QuickBooks Entrepreneurship in 2024 Report sheds some light on this topic. Surprisingly, when small business owners were asked how they plan to grow, getting funding wasn’t among their top three strategies. Instead, they prioritized hiring skilled employees, followed by investing in social media and e-commerce.
There are some generational differences in their strategies for boosting revenues. A majority of Generation Z business owners (88%) are eager to expand their online presence or physical locations, compared to 66% of Gen Xers and baby boomers. Moreover, 76% of Gen Z and 80% of millennials are planning to hire next year, whereas only 58% of Gen X and boomer business owners intend to do so.
Another survey from Intuit, the 2023 Intuit QuickBooks Small Business Index Annual Report, highlights the heavy reliance on credit cards for managing cash flow among small business owners. Around 83% of those surveyed have used a credit card for their business finances. Notably, 70% of them prefer personal credit cards over business ones, though those with employees are more inclined to use business credit cards.
About 59% of small business owners see credit cards as an emergency or temporary financial tool. However, 24% doubt they’ll clear their credit card balances next year without incurring interest, 51% have used half or more of their credit limits, and over 40% face an APR of 20% or more on their business credit cards.
When it comes to starting new ventures, 23% of those surveyed are considering launching a business in 2024. Gen Z leads this group with 28%, followed by millennials at 26%, Gen X at 20%, and boomers at 10%. Many startup entrepreneurs are counting on their tax returns to fund their businesses; since 2020, 32% have done so, and 65% believe a smaller return in 2024 would complicate starting a business or side hustle.
So, what does success mean for these entrepreneurs? The report indicates that for 42% of small business owners, boosting revenue is the main goal. Additionally, 62% of those running side businesses would leave their day jobs if they could make $100,000 annually. On average, millennials say they need $288,000 to feel successful, while boomers would be content with $126,000.
