Small Business Investing

Financing Small Businesses

On average, how much money do new companies require to start their operations and activities?

According to the Kauffman Foundation, in a sampling of many new companies (that may be larger than the national average), new companies require approximately $80,000 per year. The median or middle amount required to start a business is approximately $50,000. New companies tend to require capital from owners directly and bank credit, when possible or required to fuel their beginning operations. In its rigorous data collection set, Survey of Business Owners, the U.S. Census Bureau found that one-third of all non-employer firms and 12% of employer firms required no start-up capital. Furthermore, twenty percent of all employer firms required less than $5,000 in start-up capital.


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