The Pursuit of Flexible Work is Leading People to Start Small Businesses in the U.S.

The pursuit of flexible work opportunities is one of the biggest factors influencing many people’s decision on whether they should launch a small business in the U.S. 

A recent Amex Trendex report shows 44% of small business owners turned to entrepreneurship because they “needed more flexible work.”  

Notably, the report, which surveyed 1,127 U.S. small business financial decisionmakers, found 74% of Gen-X and Boomer small business owners had a traditional job or another role in their current business before starting their company.  

Millennials and Gen-Z are more divided, with a higher likelihood of starting their businesses immediately out of school.  

“About six-in-ten (59%) of Millennials and Gen-Zers surveyed had a traditional job before starting their business, but one-in-five (20%) Millennial and Gen-Z small business owners indicated they were students or unemployed before starting their business (vs. 3% of Gen-Xers and Boomers),” the survey reveals. 

Moreover, Millennial and Gen-Z small business owners predominantly learned about entrepreneurship online or via social media (56%). In comparison, Gen-X and Boomers typically gain their entrepreneurial knowledge through personal connections with other entrepreneurs (47%). 

Despite persistent uncertainties within the post-pandemic economy, like high interest rates, the personal drive and long-term aspirations of U.S.-based small business owners remain big influential factors when an individual decides to launch a small business as well. The data reveals 84% of the respondents were inspired by a personal passion, 65% saw a need in their community, and 59% want to support their family and future generations.  

When it comes to small business concerns, the pricing and cash flow forecasting remain top concerns — with 44% and 35% of respondents citing these issues, respectively.     

“Small business owners are concerned about issues like pricing and cash flow forecasting, but they are overwhelmingly happy that they chose their career path as entrepreneurs, and most intend to be small business owners for the long run,” said Gina Taylor Cotter, EVP & GM, Small Business Products & Business Blueprint at American Express. 

When asked about the top contributing factors that helped small business owners navigate recent years, 33% of Millennials and Gen Z cited technology solutions, compared to 18% of Gen-Xers and Boomers. 

The data reflects the resilience and adaptability of small business owners in the U.S., particularly among younger generations. There is a high desire for better work-life balance across the workforce, but there is also a desire among younger generations for more meaningful work.