Should You Start a Small Business in 2023?

If you’ve been waiting for the perfect time to start your business, 2023 just might be it.

Are you thinking of starting a small business? You're not alone. In fact, according to the U.S. Small Business Administration, there are more than 32.5 million small businesses in the United States, and 13% of these businesses are startups. But with so many existing businesses, you might be wondering if there's still room for you to launch your own venture. If you're thinking about starting a small business in 2023, here are a few things to keep in mind.

There's never been a better time to be an entrepreneur

In today's world, anyone with an idea, some ambition, and a willingness to work hard can start a business. Thanks to technology, you no longer need expensive office space or equipment -- you can run your entire operation from your laptop. When it comes to starting a small business, technology has made things easier and more affordable than ever before -- you can launch an entire e-commerce operation for less than $100.

From accounting software that tracks your finances to social media platforms that allow you to market your products or services, there are endless tools available to help you get your business off the ground, and many of them are free or low-cost. There are also plenty of online resources available to help you get started, including how-to guides, templates, and support groups for entrepreneurs.

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Starting a small business isn't easy though

In 2019, prior to the pandemic, there were 1.04 million new businesses, compared to the 928,000 businesses that closed. About two-thirds of small businesses survive after two years, about half after five years, and only about one-third survive after 10 years. The number drops to 25% after the 15-year mark. Small businesses typically are more impacted by economic conditions than larger businesses. Of the 15 million jobs lost during the beginning of the pandemic, Q2 2020, 8.6 million were small business jobs.

Small businesses, that in the beginning need more sources of financing, are also being negatively affected by today's interest rates. Rising rates are making it more expensive to borrow money, driving down cash. High inflation also tends to disproportionately impact small businesses since they don't have the buying power large businesses do. After a rough 2022, small businesses may see the economy stabilize next year, making it potentially an ideal time to start a business.

More resources to help small businesses

There are a variety of government programs available to help small businesses get off the ground. From loans and grants to tax incentives and counseling services, there are many government resources available to help small businesses not only get started but also stay afloat.

Consumers are also becoming increasingly aware of the importance of supporting small businesses, especially local businesses. In fact, according to American Express, 88% of consumers say they would be more likely to shop at a small business if they knew it supported other local businesses or contributed to the local community.

If you're thinking about starting a small business, 2023 just might be the perfect year to do it. With so much opportunity and support available, there's no reason not to give it a shot! If you've ever dreamed of being your own boss, there's no time like the present to make it happen.