For many people, owning a business is the American dream. When you launch a small business, it gives you the opportunity to follow your passions and control your own destiny.
That’s the glamorous side of small business in America, but a recent survey by Fundera demonstrates how challenging running a small business can be. In the survey, Fundera found that a large portion of small business owners don’t pay themselves any sort of salary, despite the fact that they’re working long hours which include nights and weekends.
For comparison’s sake, the average CEO in the United States has an annual salary of $163,000. Most small business owners don’t come close to that mark, with 87 percent of them having a salary of under $100,000. Of the ones that do make over $100,000, it’s an even split between those in the $100,000 to $150,000 range and those making over $150,000. As far as the small business owners who don’t take any salary are concerned, they made up 30 percent of the surveyed group. That obviously doesn’t necessary mean that they aren’t making any money off their small businesses.
Working overtime is very common among small business owners. The survey found that 81 percent of small business owners would work nights at least on occasion. The number who would work on weekends was even higher at 89 percent.
All this information makes sense. Employees will usually have a set schedule, and 9 to 5 is still the most common schedule in the United States, which means the typical employee isn’t working nights and weekends. Small business owners who are trying to grow their businesses successfully are more likely to be driven towards working all hours to get the results they want, hence the high percentage working on nights and weekends.
As far as the salaries are concerned, 30 percent is quite a few small business owners who aren’t taking a salary, but it’s understandable that they wouldn’t if the business isn’t making enough money. The business needs to generate a profit before the owner can pay himself. It’s also possible that some of these small business owners were working while building their businesses so that they could still earn income during that time.