More South Carolinians will start new business ventures in the new year as the cost of living and inflation spur the creation of small businesses out of necessity and passion.
A survey of more than 15,000 adults across the US by global financial technology platform Intuit QuickBooks was released this month and shows that 2023 will be a strong year for people to make plans to become self-employed.
Delaware led the way, with 23 percent of respondents reporting that they had created a new business in the past year. Rounding out the top five are Hawaii, at 22 percent, New Jersey and Virginia, at 21 percent, and Maryland, at 20 percent. South Carolina followed with 18 percent reporting starting 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 main venture or side hustle by 2023.
According to the survey results, technology facilitates the creation of new and side hustle businesses.
About 46 percent of respondents said they would pursue an e-commerce business where transactions for products and services are conducted electronically over the internet.
Technology and retail are expected to be the fastest growing new small and medium businesses in 2023, with one in five likely in those industries. Arts and entertainment may be another area of growth as people explore their creative sides with the hope 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 down existing jobs.
Nearly two-thirds of people planning new businesses in 2023 — 65 percent — said they would continue to work for other employers splitting their work week between them and their side hustle.
Continuing to work for an employer can 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.
While building and funding small businesses is top of mind for many, the survey also showed that inflation will cause many workers to move jobs by 2023. More than three in five, or 61 percent, said the need to earn more will drive them to the job market.
In South Carolina, 35 percent of adults surveyed said they plan to change jobs.