New Ventures Surge with Lower Startup Costs
The losers: Banks, because less capital is needed by a new breed of entrepreneur.
The winners: the American economy, which again shows the power of productivity to create new jobs and opportunities.

According to the Small Business Administration, entrepreneurs starting new ventures expect low startup costs that will not require bank loans. Individual entrepreneurs expect startup costs will average $6,000, while teams of entrepreneurs project higher startup costs that average $20,000. Eighty percent of the more than 800 budding entrepreneurs surveyed said they did not expect to take out a bank loan to cover the startup costs. "Not all ventures require large infusions of capital," said Dr. Chad Moutray, chief economist for the SBA Office of Advocacy. "Everyday ordinary Americans strike out on their own to grab a piece of the American Dream. It doesn't take a lot of savings to participate in the ownership society, just a good idea and lots of hard work and perseverance." The survey also showed, on average, individual entrepreneurs expect a $90,000 income after five years, while team ventures expect $125,000. According to the Office of Advocacy, the higher team average makes it more likely that these new ventures will result in new job creation. Source: NFIB.