More than half of the starting entrepreneurs achieve more turnover than expected in the first three years

Becoming an entrepreneur is exciting in many ways, especially financially. But those who take the plunge often quickly achieve more turnover than expected. Research by online bank Knab among more than 3,000 business customers shows that more than half of the starting entrepreneurs (52 percent) achieve more turnover within the first three years than they had anticipated in advance. About a third (34 percent) has approximately the expected turnover and only 14 percent has a lower turnover than expected. “Our customers start their business on average around the age of 40, a life phase in which financial security is extra pleasant”, says financial expert Oskar Barendse from Knab about that. “But with the right motivation, a good insight into your finances and a lot of perseverance you will come a long way.” Yet financial insecurity is the main reason why people hesitate to become entrepreneurs. A third of the entrepreneurs say that this was the main obstacle before taking the step. In addition, they mainly mention ‘no sense in peripheral matters’ and ‘doubt about their product or service’ as barriers. Earning a lot of money is by no means the most important reason to start a business, that is the need to do fun work, according to Knab’s research. At 41 percent the expectation to earn more plays a role, while 84 percent of the starting entrepreneurs indicate ‘I wanted to do work that I like’. Other frequently cited reasons for starting an entrepreneurial business are “I had a specific quality” (79 percent), “I wanted more of a challenge in my life” (66 percent) and “I didn’t want to work as an employee” (57 percent).

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“These figures show how much passion the self-employed person often has for the profession,” says Barendse. “In my opinion, pleasure in your work is one of the most important conditions for being successful. Earning money is a nice consequence of that, but not necessarily the best motivation to start a business.”

Read also: Unemployment remains stable, but there are large differences between sectors.

Author: Jobly