More South Carolinians will begin new business ventures in the new year as the cost of living and inflation spur the creation of small businesses out of both necessity and passion.
A survey of more than 15,000 adults across the U.S. by the global financial technology platform Intuit QuickBooks was released this month and shows that 2023 will be a strong year for people to deliver on plans to become self-employed.
Delaware led the way, with 23 percent of respondents reporting having created a new business last year. Rounding out the top five were Hawaii, at 22 percent, New Jersey and Virginia, at 21 percent, and Maryland, at 20 percent. South Carolina trailed with 18 percent reporting the start of a new venture in 2022.
This new year promises more robust small business growth in the Palmetto State. Of those responding to the survey, 35 percent said they plan to create a new primary venture or side hustle in 2023.
According to survey results, technology is making building new and side hustle businesses easier.
About 46 percent of respondents said they would pursue an e-commerce business where transactions for products and services are conducted electronically on the internet.
Technology and retail are expected to be the fastest growing new small and side businesses in 2023, with one in five likely in those industries. Arts and entertainment could be another growth area as people explore their creative sides with hopes of reaching audiences online and through social media.
While pursuing a new business out of passion or creativity, these side hustles are becoming more popular as the higher cost of living has people scrambling to supplement their incomes.
Flexible work schedules and virtual connections born out of the COVID-19 pandemic are allowing more workers to build businesses while holding onto existing jobs.
Almost two-thirds of people planning new businesses in 2023 — 65 percent — said they would continue to work for other employers dividing their workweek between them and their side hustle.
Continuing to work for an employer could also help budding entrepreneurs fund their side hustles.
The majority of survey respondents, 73 percent, said they would use their own money or savings to start their businesses. Another 23 percent said they would seek funds from traditional banks, and 17 percent said they would look to online lenders for financial support.
As building and funding small businesses top the minds of many, the survey also showed that inflation will cause more workers to switch jobs in 2023. More than three in five, or 61 percent, said the need to earn more is pushing them into the job market.
In South Carolina, 35 percent of adults surveyed said they plan to change jobs.
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This content was originally published here.
