Startup Confidence Continues Gradual Climb
Eighty-five percent of startup owners in the U.S. are confident that the next 12 months will bring greater profitability. The figure is a one percent increase over the first-quarter results of the Kauffman/LegalZoom Startup Confidence Index and the highest level since the young study began in early 2012.
The increased confidence was driven primarily by the 31-40 and 60-plus age groups, with 91 percent and 76 percent, respectively, either somewhat or very confident. Younger entrepreneurs – those 18 to 30 years old – remain more certain about their businesses' future profitability than older entrepreneurs, with 93 percent either somewhat or very confident in their prospects.
"Tracking the perspectives of new business owners provides us with an important economic gauge," said Dane Stangler, director of Research and Policy at the Kauffman Foundation. "Their growing confidence in the future, even incremental, is a sign of how they are experiencing economic conditions right now. And it appears to be very good, based on these findings."
Businesses in the study were very small, with 87 percent having just one to four employees, including the owner. However, 69.5 percent of the startup owners anticipate having six or more employees within the next five years.