Small-business owners put a higher premium on their independence and acumen.
In reflecting on their wealth creation, America’s Millionaire small-business owners take their cue from the classic Paul Anka song: They did it their way.
A Millionare Corner wealth level study of households with a net worth between $1 million and $4.9 million (not including primary residence) finds that only 16 percent of respondents who are small-business owners credited family connections for their wealth creation. Similarly, just over one-third (34 percent) In comparison, 92 percent credited their own hard work.
The second most-cited wealth creation factor was “running my own business” (89 percent), while frugality ranked third (87 percent).
Small businesses are the bedrock of the American economy. They represent 99.7 percent of all employer firms and employ half of all private sector employees, according to the Small Business Administration. They generate $6 trillion in revenue annually, which is equivalent to the second largest economy in the world.
Small-businesses pay 44 percent of the total U.S. private payroll and have generated 65 percent of net new jobs over the past 17 years.
Small-business owners put a higher premium on their independence and acumen. Eighty-four percent credit smart investing with their wealth creation, while less than one-third (32 percent) credit decisions made for them by an advisor.
What’s luck got to do with it? Not much, small-business owners say. Forty-nine percent credit their success to kismet, compared with 69 percent who credit their wealth creation in part for having the foresight--and perhaps a little luck--to be in the right place at the right time.
More than three-fourths (78 percent) credit their education, which is a lower percentage than surveyed Millionaire households overall (94 percent), which perhaps leads to the next wealth creation factor: Taking risk, which 72 percent credit for their wealth creation.
Small business owners and entrepreneurs have a maverick streak, and according to the U.S. Census Bureau, just over half of business owners have a college degree vs. more than nine-in-ten of Millioniare households overall.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.