Everyone thinks they’re an entrepreneurial genius

In this golden age of entrepreneurship, one in seven Americans thinks they already have the next “game-changing” business idea.

New research of 8,000 Americans examining their business ideas, dreams and journey to becoming a business owner found as many as one in two (45 percent) think they have an idea that could be a genuine winner.

Of those with a business idea, 31 percent are confident they have an idea so strong it could change the world and make waves across its chosen industry.

The figures emerged in a study conducted by OnePoll in conjunction with Northwestern Mutual, which examined the ideas and business aspirations of 8,000 Americans.

Sixty-six percent of survey respondents consider themselves aspiring entrepreneurs. People of color were significantly more aspirational here with half of those polled carrying these ambitions — 20 percent more than Caucasian respondents.

In fact, the results showed that minorities are overall more likely to have a side hustle that they want to turn into their own business.

Having confidence in your idea is key and more than half of all Americans with business concepts think it could one day be their primary income and make them wealthy, while 46 percent said their idea will really help people.

Sadly though, there is a big difference between having a winning idea and making it happen. Forty-one percent of people with what they consider a strong business idea have yet to take any steps toward making their dreams a reality.

That might be because, when it comes to turning ideas into actions there are clear barriers. The biggest hurdle reported by Americans was having the financial support needed to grow their business.

These significant obstacles are stopping people from making even the smallest step toward having their dreams. The major roadblock facing Americans is lack of finances (65 percent).

Other great tribulations include the fear of failure (32 percent), not knowing what the next step is (28 percent), being overwhelmed (20 percent), and not having any supportive people around (17 percent).

Having support systems and advisors was deemed crucial when it comes to starting a successful business. Over half (51 percent) of those who either have a business or are looking to start one relied on their support systems for financial assistance to get their business up and running.

As side hustles are the foundation of a full-time business, it’s diverse entrepreneurs who are more likely to take tangible steps toward creating a full-time business. Two in five diverse entrepreneurs had assistance from financial advisors compared to just 28 percent of their Caucasian counterparts.

“For entrepreneurs, a trusted financial advisor is not only a great resource for the many questions that come up when starting a business, but an advisor can also help plan for the long-term,” said Carrie Neumann, Director of Multicultural Market Strategy at Northwestern Mutual.

Fifty percent of diverse respondents said they have the desire to start their own businesses and increase their income by running their own companies. In fact, diverse respondents are more likely to already have a business or side hustle already (21 percent) compared to Caucasian respondents (15 percent).

Starting a business is no easy feat, which is why mustering up motivation is key. In fact, the top motivating factor for starting a business was the potential income owners would receive if and when it became a success, followed by following a strong passion.

Being laid off prompted many people to finally pursue a business out of necessity while 28 percent admitting to starting their business because they didn’t feel like there were any jobs available to them.

Twenty-three percent of diverse respondents were motivated to start their business because they identified a gap in the market with no current solution.

But simply starting a business really is just the beginning. Of those who have started a business or side hustle, 59 percent revealed that the biggest hurdle was having an unstable or unpredictable income with women worrying about their cash flow more than men (63 percent versus 52 percent).

For those who have started a business or side hustle, an increase in stress (48 percent) and increased working hours (40 percent) were additional drawbacks associated with running a business.

However, despite the drawbacks, there are obvious freedoms. The number one benefit of having your own business was the autonomy and ability to be your own boss (55 percent).

Other perks included the potential to grow your income (55 percent), following a passion (51 percent), supporting the family (47 percent), and having greater job satisfaction (46 percent).

“A personalized, holistic plan sets business owners on track to achieve their goals, and it also puts protections – for the business, the owner and current or future employees – in place for the expected and unexpected” added Carrie Neumann.

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