Starting a business

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9th February, 2023

Report: 3 key ingredients for starting a business

New research has found self-belief is a key factor in starting a business, but there are a couple of other variables that spell the difference between dreamers and doers.

Everyone has that friend who always seems to be coming up with the next killer app. Then there’s that couple who want to set up a furniture refurbishing and ‘upcycling’ shop.

You may have even come up with a cracking idea that could have been a great business concept. But, like most Australians and New Zealanders, the dream never seems to become a reality.

In fact, a new survey from leading business management platform MYOB has found less than half of all people who say they’ve had a good idea for a business ever bring it to life.

On the other hand, a much smaller percentage of people can be considered ‘serial entrepreneurs’, having started multiple businesses throughout their careers. So what are the key factors that determine whether you’re likely to start a business or remain an employee?


Identifying barriers to entry


The survey, which received 2,000 responses split across both Australia and New Zealand, asked people what had held them back from starting a business, and the results are similar across both nations.

Key highlights of the MYOB Belief Barometer:

  • 76% of Aussies say they’ve had at least one business idea, but only 35% of those have gone on to start one
  • For the innovative Kiwis, 85% say they’ve had an idea, but only 50% of them followed through in creating one
  • Lack of available finance was the primary reason for not pursuing a business idea in both Australia (38%) and NZ (45%)
  • But, a fear of failure was also in the top three reasons, with 34% of Aussies citing it and 32% of Kiwis

These statistics are contrasted against the finding that, for a small percentage of the population, starting businesses is something of a habit.

In Australia, of all the people who have started a business, 10 percent have started three or more in their time. This number shrinks to eight percent in New Zealand.

“There’s no denying that starting a business is a big commitment and it takes an incredible amount of self-belief, particularly as we navigate current economic headwinds,” says MYOB’s General Manager of SME, Emma Fawcett.


Belief, backing and a business management platform


Head of Go-To-Market for MYOB, Jo Tozer believes that, with the right backing and more affordable, easy-to-manage business solutions at their fingertips, more people will become entrepreneurs.

“What’s key is having that confidence to back themselves.

“When armed with self-belief and the right tools and support, we could easily see more of these ideas make it past a chat around the BBQ,” says Jo.

And it could be a lack of understanding, familiarity or trust in available business management solutions that feeds into a general lack of confidence.

“For many, a business idea is an opportunity to pursue a passion project or the creation of something to help others, but it comes with many other responsibilities such as keeping the books, managing inventory, or tracking sales leads, which is where doubt can creep in,” says Emma.

That’s where MYOB comes in. A business management platform that brings together the six key workflows that most businesses will at some stage encounter, and so using MYOB means less complexity, more efficiency and higher security.

READ: Do you MYOBelieve? Find out how to unleash your business potential

“I’ve got no doubt that there are some absolute game-changing ideas out there and it would be a shame for these startup dreams to be left unrealised because of any self-doubt in this area,” says Jo.

“This is precisely why MYOB has evolved into a platform that streamlines key business workflows — bringing everything together in one place where business owners can manage their entire business.

“We want to empower business owners to feel confident in their decisions and focus on unlocking their potential, so we’ve done the legwork for them.”

Thinking of starting your own business? Set yourself up for growth from the get-go with all your key workflows together in one place. Learn more about MYOB in Australia here. For New Zealand business operators, find out about the MYOB business management platform here.