What’s Stopping Americans From Starting a Business in 2025?

Every new year brings a wave of motivation – a fresh start filled with possibilities. For many Americans, the “new year, new me” mindset includes aspirations of starting a small business. And they’re not alone. Each year, a flood of new businesses emerges in January, as people channel their resolutions into entrepreneurial action.

Yet, for every new venture launched, many others never leave the drawing board.

What stops so many from turning their dreams into reality? To answer this, we surveyed 2,000 Americans to uncover how the New Year mentality impacts their decisions to start a business. Beyond motivation, we explored the fears, struggles, and barriers that prevent people from taking the leap.

This article dives into what we found, exploring the common fears, skill gaps, financial challenges, and tools available to empower aspiring business owners to make their dreams a reality.

New year, new business?

The “new year, new me” mindset has a profound effect on entrepreneurial aspirations. According to our survey, nearly 48.48% of respondents reported that this mindset directly influences their decision to start a business.

What drives this motivation? For many, it’s the desire for a fresh start. In fact, 29.21% of respondents said that dissatisfaction with their current situation pushes them to consider launching their own business.

As the calendar year resets, 28.60% of people feel highly motivated to take action and pursue their goals. Another 29.09% admitted they’ve been thinking about starting a business more frequently, and 13.39% feel inclined to take those thoughts further and start planning seriously.

More than 30% of Americans have thought about starting a small business

The idea of turning over a new leaf is a powerful motivator during this time of the year. However, there’s often a significant gap between wanting to start a business and taking the steps to make it happen. Our survey revealed that 31.20% of respondents have thought about starting a small business but have never taken the plunge.

The most popular idea among these aspiring entrepreneurs was to open an eCommerce store, with 13.17% identifying it as the type of business they considered. Yet, despite their aspirations, various insecurities and barriers prevent them from moving forward.

What’s holding them back?

Fear plays a significant role in deciding against starting a business:

• 25.88% of respondents admitted they were afraid of overworking and burning out, a risk that feels overwhelming when considering the demands of running a business.
• Almost 20% reported that self-doubt and imposter syndrome were stronger than their confidence in their ability to succeed in their entrepreneurial journey.

Additionally, a lack of skills and knowledge emerged as a major obstacle, with 30.89% of respondents citing it as the reason they haven’t started their small business.

When asked which skills they felt they lacked, the responses highlighted several technical challenges:

• 27.94% struggled with website building and maintenance.
• 17.63% found eCommerce tools and platforms intimidating.
• 17.01% lacked coding and programming knowledge.
• 16.23% identified graphic design as a skill gap.

These technical and emotional barriers can feel insurmountable, leaving many would-be entrepreneurs stuck in the ideation phase.

The lack of skills nightmare

While many Americans dream of starting their own business, others haven’t even considered the possibility. According to our survey, 23.59% of respondents said they’ve never thought about starting a small business. When asked why, one major reason stood out: a lack of necessary skills.

What skills are missing?

Among those who cited skills as a barrier, the specific areas of concern were:

• 42.36% struggled with understanding eCommerce tools and platforms.
• 38.77% lacked website building and development skills.
• 34.46% pointed to coding and programming knowledge as a gap.
• 38.30% felt they didn’t have the graphic design expertise needed to support a business.

These findings highlight a recurring challenge: technical skills are perceived as essential to running a modern business. Whether it’s creating a functional website or managing an eCommerce platform, the learning curve seems too steep for many aspiring entrepreneurs.

When combined with fears of overwork, burnout, and self-doubt, this lack of confidence in their skillset creates a daunting barrier for those who might otherwise take the leap. Addressing these gaps could open the door to entrepreneurship for thousands of Americans.

Why are 30.51% of Americans dropping their small businesses?

Starting a small business is only the first step – keeping it running is a whole different challenge. Our survey found that 30.51% of respondents who had previously owned a small business decided to stop.

The reasons behind this trend shed light on the struggles of entrepreneurship:

• 10.24% of respondents said they stopped due to a lack of skills or knowledge, highlighting the technical challenges of running a business.
• 13.42% attributed their decision to a lack of confidence, indicating the mental toll entrepreneurship can take.
• Nearly 20% found it difficult to bounce back from setbacks, which can be particularly discouraging in the early stages of business ownership.

For many, the technical side of running a business was a significant factor. eCommerce stores were the most common type of business among respondents, with 20.12% citing it as their venture of choice. However, the demands of maintaining an online store – whether it’s website development, coding, or graphic design – proved to be overwhelming.

These findings suggest that a lack of preparation and technical knowledge doesn’t just prevent people from starting a business – it also contributes to their decision to quit.

What about the ones who took action?

Not everyone lets fear hold them back. Among our respondents, 14.7% currently own a small business. While this is encouraging, these entrepreneurs face their own set of obstacles.

Key challenges for small business owners

Even for those who’ve taken the leap, technical skills remain a top concern:

• 17.99% struggle with website building.
• 10.54% find graphic design challenging.
• 9.90% cite difficulties with coding.
• 9.05% encounter issues with eCommerce tools.

Priorities for improvement

Many small business owners are actively seeking to improve their skills to make their ventures more efficient:

• 9.98% identified website building as their top priority.
• 7.13% want to improve their graphic design skills.
• 5.75% are focusing on coding knowledge.

These struggles highlight the ongoing demands of running a business in a digital-first world. Even with modern tools and resources, the technical learning curve can lead to stress, fatigue, and, in some cases, burnout.

Only 8% of small business owners say they don’t feel burnout ever

Burnout is an undeniable challenge for small business owners, with only a small percentage of people managing to avoid it entirely. Our survey found that just 7.67% of respondents who own a small business reported never feeling burnout.

For most, the experience is very different:

• 19.25% feel burnout frequently.
• Over half (52.83%) experience it occasionally.

The digital tools that make managing a small business easier can also contribute to burnout. With 68% of small business owners primarily running their businesses via smartphone, it’s nearly impossible to fully disconnect. While technology allows for flexibility and convenience, it also blurs the boundaries between work and personal life, leaving entrepreneurs constantly “on.”

Let’s not forget about the legal tender

For many aspiring and current entrepreneurs, financial concerns loom large. Whether it’s the fear of losing money or the challenge of securing funding, the role of finances in starting and running a small business cannot be ignored.

Financial fears: Why some never start

Our survey revealed that financial barriers are among the most common reasons why people hesitate to start their own businesses:

• 27.59% cited insufficient financial resources as their main concern.
• Over half (56.18%) feared financial loss or falling into debt.
• 32.73% admitted they lacked the necessary funds to get started.

These fears can be paralyzing, especially for first-time entrepreneurs. Without sufficient financial security, the perceived risks of starting a business often outweigh the potential rewards.

Financial struggles of small business owners

Even for those who’ve taken the leap, financial pressures remain a challenge:

• Tight budgets can limit opportunities for growth.
• Financial insecurity and unexpected expenses, such as technology upgrades or marketing campaigns, often strain resources.

These financial worries highlight why affordability and cost-effective solutions are critical for empowering new and existing business owners alike.

We got the why, but the future focuses on the how

A lack of tech-savvy skills and insufficient funds are two of the biggest reasons why many people struggle to start or sustain a business. However, these challenges don’t have to be deal-breakers.

Today, affordable tools help to simplify the technical aspects of running a business, making it easier than ever to launch and manage an online presence without coding, programming, or graphic design expertise.One such tool is Hostinger AI Website Builder. With just a single prompt, you can create a professional, fully functional website tailored to your business needs. This eliminates the technical barriers to website creation and allows entrepreneurs to focus on growing their businesses, rather than learning how to code.

What does the data tell us?

If we look at the types of businesses using Hotinger AI Website Builder to create their websites, clothing and fashion brands lead the pack. Other popular categories include:

• Hair and beauty products
• Coffee and gourmet snacks
• Parts repair and electronics
• Coaching services, such as yoga or personal growth

This highlights how accessible launching a business is with AI tools, even in competitive industries. No matter your business idea, an AI website builder can help you get started with minimal effort or technical skills.

Real (life) numbers to empower your decision-making

Beyond online speculation, our data highlights actual trends and successful categories for small businesses and side hustles in the US.

What’s thriving?

When we consider the average annual turnover in USD, among the top-performing categories, we see:

• Gear, fishing equipment, and airsoft brands leading the way with some of the highest average earnings.
• 3D printing businesses, which remain a profitable niche for many successful entrepreneurs.
• Coaching and spiritual growth services, demonstrating the market’s demand for personal development.
• Marketing and media services, ever so essential for modern businesses.
• Floral arrangements and subscriptions, combining creativity with recurring revenue potential.

These top categories are earning impressive amounts, but it’s important to note that all categories represented in the data are generating results. Whether your focus is on books, health products, or online stores, there’s potential for success.

How much are businesses earning?

Our data shows average earnings distributions, too, revealing that most businesses that are being operated by Hostinger AI Webiste Builder are making respectable profits:

• A significant portion of businesses earn more than $5,000 per year, which is a solid figure for a side hustle or small business.
• A notable percentage of businesses even achieve $10,000–$50,000 annually, showing that higher earnings are entirely possible for online businesses.
• Impressively, some businesses surpass the $100,000 mark, highlighting the scalability of small business ventures online.

Embrace the New Year, embrace your business dreams

Nearly half of Americans are motivated by the New Year mindset to pursue entrepreneurship, seeing it as an opportunity for a fresh start. However, fear and self-doubt often prevent them from turning their aspirations into action.

For many, a lack of technical skills – such as website building or graphic design – creates additional barriers, leaving them feeling unprepared. Even those who’ve taken the leap face ongoing challenges, including burnout and financial pressures, as they navigate the complexities of running a small business.

Fortunately, modern tools like Hostinger’s AI Website Builder are transforming the entrepreneurial landscape. By simplifying technical tasks, these tools are breaking down barriers and empowering more people to start and sustain their businesses with confidence.

So, why not make 2025 the year you take the leap?

The author

Matleena Salminen

Matleena is a seasoned Content Writer with 5 years of content marketing experience. She has a particular interest in emerging digital marketing trends, website building, and AI. In her free time, Matleena enjoys cups of good coffee, tends to her balcony garden, and studies Japanese. Follow her on LinkedIn