Most small businesses in the U.S. were started or acquired with less than $30,000 in invested capital.
To be more precise, the median small business was started with about $27,000.
The chart below is based on data from the U.S. Census 2014 Survey of Entrepreneurs. It shows the percentage of small businesses by the amount spent to start or acquire the business.
Regular readers may remember back in 2014 we reported on a survey that said most small businesses are started with less than $10,000.
This data is consistent with the Census data presented above. The difference is the Census data is for all small businesses with fewer than 500 employees. The data from the 2014 survey was for small businesses with fewer than 50 employees.
And as we noted back then, most solopreneur businesses report spending less than $5,000 to start their business.
The Internet, cloud computing and the general cost declines associated with technology have made it much cheaper and easier to start a business than in the past. We believe these trends will continue, allowing more people to become entrepreneurs.