Start-ups rely on help of friends and family

March 22, 2018

New businesses often follow the “theory of relativity.” Indeed, 80% of start-ups begin life by relying on friends or family of the founder to help out, based on findings of a study conducted by New Zealand software company Xero and released on March 14.

Researchers who contacted 1,000 businesses discovered that the majority prefer to employ their nearest and dearest rather than risk hiring unsuitable candidates.

And it is no surprise that many of the founders are Millennials: According to the data, nearly 69% of new businesses set up in the past five years were started by those between the ages of 18 and 34.

The study also found that 90% of small business owners believe that setting up shop is one of their proudest accomplishments, with 48% comparing it to the buzz of buying a first home.

When asked what the best thing about setting up their own business was, 51% said it was being their own boss; 38%, being able to control their work-life balance; and 38%, being able to get things done the way they prefer.

Overall, 82% of small business owners said they are now running the business of their dreams

The research marks the launch of Xero’s #behindyourbusiness campaign to encourage budding business owners to take the plunge.

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