“While it’s no surprise that finances were the biggest hurdle, acting on the strength of their belief in their idea to explore avenues that could help them overcome these barriers could unleash the opportunities people are hoping for,” MYOB head of go-to market Jo Tozer said.
“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 the ‘pub test’.”
Entrepreneurs who did take their idea beyond a beer were mostly confident it would succeed, with more than two-thirds either extremely or moderately bullish.
While partners were touted as common supporters to those starting their first business, one-third of business founders said they were their own biggest backer, suggesting self-belief was crucial.
“Starting a business is not only a big commitment but a very brave one – particularly in a time packed with economic challenges and uncertainty,” Tozer said.
Business Mentors New Zealand chief executive Sarah Trotman encouraged anyone with a business idea to act on it, and suggested having a mentor to help overcome the fear of failure and rejection.
“A key first step is clearly identifying the problem you’re looking to solve. Seek out and talk to people already in the industry you are thinking of targeting and get their thinking,” Trotman said.
While confidence got many entrepreneurs over the start line, she said there was no substitute for hard work and experience.
On finding finance, she encouraged entrepreneurs to have an open mind, although it paid to be prudent too.
“The money is there if it’s a good idea.
“Whenever a budding business owner tells me everyone thinks their idea is good, I ask them to go back to those people and ask them for $1000. That really tests the truth of things.”
Tozer suggested growing a business could become even more challenging, as entrepreneurs had to keep up with finances, tax obligations, inventory and sales.
“The thought of this can be incredibly daunting and it’s important to recognise that business management doesn’t come naturally for everyone.”