81% of Successful Small Businesses Start as Side Hustles, Study by LuisaZhou.com Finds
Small businesses that reach six figures and more in revenue tend to start as side hustles, according to analysis
81% of small businesses that make six figures or more start as side hustles, according to research from LuisaZhou.com.
The research also discovered that most small business owners who reach at least six figures in revenue have a college degree.
The analysis included case studies of 200 small business owners, predominantly based in the US (97.5%), with a revenue from high-five figures to high eight-figures. The analysis was conducted online from April 1-May 25, 2021, and updated in November 2021.
The ‘2021 Small Business Report’ investigated several factors that go into building a successful small business.
A Great Customer Experience is Key to Success: The analysis found that the majority of successful small business owners say the biggest reason for their success is offering a great customer experience.
The Most Important Reason for Starting a Business: The analysis reports that the main reason for starting a business, according to 33.3% of analyzed entrepreneurs, is to have a bigger impact and feel more fulfilled.
People Start Successful Businesses Later in Life: The analysis found that a majority, 51.3% of the analyzed entrepreneurs, were between 30-39 years old at the time of their interviews. This backs up existing research, according to which successful businesses are started later in life.
Few Business Loans: The analysis found that most small business owners don’t take a business loan. Only 4% of the analyzed entrepreneurs said that they had borrowed money from a bank.