The lot of the quintessential small business owner presents a paradox: these individuals love being their own boss, but do not always believe themselves to be very successful at running their own business.
A Gallup poll revealed this inherent tension when it asked small-business bosses two key questions:
- Are you satisfied being the owner of your own business?
- Do you feel successful as a small business owner?
Two very different trends emerged.
First, 56 percent of those 601 small business owners surveyed said they were extremely or very satisfied being their own bosses. That was the highest percent since the pre-recession days, and a 5 percent increase compared to one year ago. In 2010, just 45 percent said they were extremely or very satisfied with being a small-business owner.
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But the successful feeling trend is going in the other direction, despite the economic recovery. Asked if they felt extremely or very successful as a business owner, 37 percent answered in the affirmative. This was the lowest level since the annual survey was launched in 2003, and 3 percent lower than that reported during the heart of the recession.
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Here's what Gallup had to say about that:
"Small-business owners convey their strong desire to be their own boss and to set their own hours, and report feeling mostly satisfied with being a small-business owner. But fewer today say they feel successful as a small-business owner, even as the economy has improved in the last few years. …
"One explanation for this paradox may lie in the fact that small-business owners tend to like the basic lifestyle and self-sufficiency that come with being an entrepreneur, and therefore may tend to be satisfied even when they don't perceive themselves as particularly successful. Over four in 10 say that the most rewarding thing about starting and running their business is being their own boss and being independent — by far the most frequently mentioned response to this open-ended question."
So, in a way, simply being one's own boss represents its own brand of success.
Gallup asked some more questions, and turned up a few gems.
When asked what was "very important" in motivating these people to start their own business, here's what they heard:
- Secure their financial future – 69 percent;
- Be their own boss – 66 percent;
- Set their own hours – 51 percent;
- Have an income source till market conditions improve – 30 percent;
- Take advantage of business opportunities – 29 percent;
- Continue a family business – 26 percent; and
- Pursue a hobby – 15 percent.
Then came a telling question-and-answer exchange: Would you recommend to a young person that they start their own business? Less than half (42 percent) said they would.
"[Our] research shows that most [small business owners] would do it all over again if given the chance [but] owners are divided on whether they would recommend to young people that they start their own business, perhaps recognizing the significant challenges that come with the territory of being an entrepreneur in today's economy," Gallup concluded.
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