Startup Founder Data Survey
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1 Startup Founder Data Survey Facts & Analysis Request An invitation startup.consero.com The Startup Acceleration Forum Marriott Biscayne Bay Miami, FL June 8 10, Consero Group. Reproduction Prohibited.
2 Introduction Executive Summary The world of entrepreneurship is filled with opportunities and challenges, successes and failures. To drive their businesses forward, startup founders must be plugged in 24/7 from conceiving an idea, to raising funds, and finding the right team to move the ball forward. Whether this group of founders sought to drive social change, take control of their lives, or simply generate wealth, they face similar challenges. Through the support of family and friends, networking, and a strong work ethic, startup founders often have many resources at their disposal to propel their businesses forward. This survey was designed to gauge startup founder perceptions of their entrepreneurship experience, and gain more insight into the challenges these individuals face along their journeys. Survey Methodology The 2016 Startup Founder Survey was created in connection with Consero s Startup Acceleration Forum, an invitationonly event for startup founders in June The 12-question survey was distributed to startup founders in the U.S., Europe, and Latin America in early 2016, and it yielded 109 responses. For qualification purposes, the responses from four individuals who identified themselves in a position other than Founder/CEO/President were excluded from the survey, resulting in 105 qualified responses. Table Of Contents 2 Introduction 5 Challenges 3 Motivation And Support For Launching A Company 7 Survey Demographics 4 Financing And Operations 8 Conclusion And About Consero Consero Group. Reproduction Prohibited.
3 Motivation And Support For Launching A Company Pursuing An Innovative Business Concept Tops The List Of Entrepreneurship Motivators A variety of factors can drive entrepreneurs to start their businesses, including a desire to be one s own boss, which is commonly cited as a motivator. However, the majority of founders surveyed (66%) name an innovative business concept as primary motivation, followed by pursuit of wealth at 58%, and control over one s life at 45%. Interestingly, 40% of respondents also cited positive social impact as a reason for founding a company. This data seem to indicate that entrepreneurs today are looking for profitable ways to drive change in their communities and societies. Fortunately, as startup founders embark on the challenging journey to make an impact or pursue an idea, 88% describe their family and friends to be either very or moderately supportive. Figure 1: What were the primary reasons for starting your business? (Select all that apply.) Innovative Business Concept 66% Pursuit Of Wealth 58% Figure 2: How supportive were friends and family when you started your business? Control Over My Life 45% Very Supportive 65% Positive Social Impact 40% Moderately Supportive 23% Inadequate Employment Options 5% Slightly Supportive 10% Not Supportive 2% Consero Group. Reproduction Prohibited.
4 Financing and Operations Nearly Half of Startup Founders Wish They Had Raised More Funding After conceptualizing a new business, the startup founder must focus energy on financing arguably one of the most challenging aspects of entrepreneurship. When asked to describe how available startup capital is in the current market, 50% of founders view it as moderately available, while 27% view it as slightly available. In looking back on their financing decisions, 44% of respondents would not change their funding strategy, while 42% would raise more from outside investors. Very few (14%) wish they had raised less from outside investors. Overall, since beginning their startup journey, 21% are pleased with their company s growth trajectory, 52% view their company s growth as on par with expectations, and 27% are behind their growth projections. Figure 3: How available is startup capital in the current market? Scarce Very Available Figure 4: If you could start your business again, how would you change your funding strategy? 12% 11% 14% Raise less from outside investors Slightly Available 27% 50% Moderately Available 44% I would not change my funding strategy 42% Raise more from outside investors Figure 5: How would you describe your company s growth trajectory? 21% Ahead of expectations 52% On par with expectations 27% Behind expectations Consero Group. Reproduction Prohibited.
5 Challenges Cash Flow And Financial Stress Top List Of Founder Challenges Three-quarters of startup founders named cash flow as their top challenge, followed by personal financial stress (47%). The overwhelming significance of financial concerns for entrepreneurs may explain why 45% of startup founders wish they had more expertise in finance and accounting before starting their business. Forty-three percent believe they would have benefited from more sales and marketing experience, and 37% wish they had more software development expertise. Upon reflecting on entrepreneurship as a whole, 47% of respondents report that the experience has been more difficult than expected, while the same percentage view entrepreneurship as neither more nor less difficult. Just six percent indicate that entrepreneurship was easier than they expected. Overall, despite the many challenges startup founders must overcome, a remarkable 94% do not regret starting their business. 15% Competition 15% Lack of confidence in myself or the business 22% Difficult partners or investors 28% Too few contacts who can relate to my experience Figure 6: What are your greatest challenges as an entrepreneur? (Select all that apply.) 47% Personal financial stress 75% Cash flow concerns Consero Group. Reproduction Prohibited.
6 Challenges Figure 7: In which areas do you wish you had more expertise before starting your business? (Select all that apply.) Finance and accounting 45% Sales and marketing 43% Software development 37% Legal 28% Human resources 16% Figure 8: Has entrepreneurship been easier or harder than you expected? 6% Easier 47% More difficult 47% Neither easier nor more difficult Figure 9: Do you regret starting a company? 6% 94% No Yes Consero Group. Reproduction Prohibited.
7 Survey Demographics Survey Demographics To qualify for participation, the 109 respondents were asked to report the title that best described their role at the company. To maintain survey integrity, responses from individuals who identified only as other were removed from the data analysis. Of the remaining 105 respondents, 81% percent are founders, 49% identify themselves as CEO, and 12% identify themselves as president. Close to a third of respondents belong to young startup organizations that are less than 18 months old, while 28% work for startups 3 5 years old. In terms of team size, a little over half of the respondents oversee teams of 1 10, while 14% have a staff size of Figure 10: Which title(s) best describes your role at the company? (Select all that apply.) 81% Founder 49% CEO 12% President 5% Other Figure 11: How old is your business? Figure 12: How large is your team? 55% 20% Over 5 years 33% Under 18 months 28% 3 5 years 21% 18 months 3 years 21% 14% 9% 1% Over Consero Group. Reproduction Prohibited.
8 CONCLUSION Conclusion Startup founders face countless difficulties on their journey to building successful ventures, with financial concerns at the top of the list. Ensuring they have the right funding and other support in place prior to launch can help ease some of their challenges along the way. Innovation and pursuit of wealth drive this group of committed executives, and their no-regret attitude can improve the likelihood of success, increase their own employment opportunities, and generate a positive social impact. About Consero Founded in 2010, Consero Group is an international leader in creating function-specific events for senior-level executives in industries that include Legal, Compliance, Shared Services, Customer Experience, Finance, IT, HR and Procurement, among others. Based in Bethesda, Maryland, Consero is best known for transforming the executive experience through intimate, invitation-only programs in a sophisticated learning environment with high-level content. For more information on Consero, please visit Opportunities to Participate at future Consero Forums may be available on a limited basis. Please contact our team for additional information. consero.com info@consero.com +1 (202) Startup Acceleration Forum Marriott Biscayne Bay Miami, FL June 8 10, 2016 Request An invitation startup.consero.com Consero Group. Reproduction Prohibited.
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