Younger Startup Owners More Confident, Survey Finds

By Kate Rogers Features FOXBusiness

Younger entrepreneurs are feeling more optimistic about their business prospects over the next year than their older counterparts. According to a recent survey, 98% of 18-to-30-year-old entrepreneurs are either confident or very confident that their business will see greater profitability in the year to come.

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The third-quarter Kauffman/LegalZoom Startup Confidence Index found that while the expectations for the U.S. economy fell overall; younger entrepreneurs have much sunnier outlooks than older entrepreneurs.

Nearly 40% of the startup owners surveyed said they believe the economy will deteriorate in the next year, which is a 4% climb from the second quarter and up from 31% in the first quarter of 2012.

Overall, 39% of entrepreneurs are “very confident” in future profitability, which was consistent with second-quarter results, the survey reported. 

However, more entrepreneurs were pessimistic about consumer demand.

The third-quarter survey found nearly one-third of entrepreneurs expect “moderate-to-significant” deterioration in consumer demand in the next 12 months. This was up 6% more than in the second-quarter survey, and 8% more than the first-quarter survey.

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Finally, 30% of startup owners said they would hire in 2012, down from 33% in the second-quarter study. Only 16% of small business owners applied for loans or lines of credit in the third quarter of the year, which was consistent with the second-quarter study.

The study was conducted online among 698 startup business owners.