A Growing Trend in Entrepreneurship: Buying Small and Midsize Businesses Rather Than Starting One

growing trend in entrepreneurship buying businesses

A growing number of people are realizing their own business dreams by buying small to midsize companies and helping them prosper.

Read the full article at: www.nytimes.com

Now more than ever, entrepreneurs are choosing to acquire small and midsize businesses rather that start their own business. And more than likely, these businesses are family-owned firms that are sold by the founder.

There are several reasons for this new trend in entrepreneurship. First of all, many baby boomers who started their own businesses are now ready to retire. Plus, money is now easier to borrow than it has been in the past.

Moreover, those who would rather be their own boss rather than climb the corporate ladder, see buying a business as much less risky than starting one up from scratch. These are people who want to build an organization and be part of the community.

They’ve discovered that shopping for a business works similar to shopping for real estate. They visit sites like BizBuySell and BizQuest, which are the largest online marketplaces for small business – everything from restaurants, gas stations and convenience stores, to retail stores, dry cleaners and ecommerce companies.

The sale of small business has jumped significantly in recent years, growing over 58 percent from 2012 to 2014. BizBuySell’s Insight Report shows business for sale transactions on a quarterly basis, broken down by industry, price and geographic area.

4 Comments on A Growing Trend in Entrepreneurship: Buying Small and Midsize Businesses Rather Than Starting One

  1. Excellent article, but what if the new Entrepreneur became a “Rentrepreneur” by leasing instead of buying a business? This concept reduces the risk, lowers the cost substantially, and allows the freedom of exiting an improper fit when and if necessary without any strings attached.

  2. Excellent presentation in this article. Of course is better to buy an existing business instead of building one from scratch, because you have your clientele well formed. So you don’t have to spend verry much money for your brend to become well known. And it’s another plus, you can learn from the mistakes of the former owner. But it’s a problem that remains: Borrowing money become expensive than ever!

  3. We totally agree and offer a even better solution than buying, just visit our website for details of the next phase of independence in business..

  4. Great article. I started from scratch and am building my own business. It was tough finding an independent insurance agency to buy. They great thing is now I’m in a position where I expand by buying another. I wish I could have started by buying right away. Life is good now though! http://oaktree-insurance.com/selling-your-business-we-buy-businesses/

Leave a comment

Your email address will not be published.