In the latest Kauffman/LegalZoom Startup Confidence Index, startup business owners’ confidence reached the highest level since the study was initiated in first quarter 2012. That’s according to the second-quarter 2013 Index, just released by the Ewing Marion Kauffman Foundation and LegalZoom.
Business owners’ confidence in achieving greater profitability over the next 12 months saw an overall increase 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.
The second-quarter survey included several new questions that provided insights into respondents’ characteristics and their companies’ profiles. As expected, businesses in the study were very small, with 87 percent having just one to four employees, including the owner. However, 37 percent of young businesses said they plan to hire employees, and an astonishing 69.5 percent of the startup owners anticipate having six or more employees within the next five years.
“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.”