What New Entrepreneurs Need to Know About Funding in 2026

A new QuickBooks survey reveals a surge in entrepreneurial ambition across America. Here’s what the data says, and what it means for how you think about funding your business.

Something significant is happening in the American entrepreneurial landscape. According to a new survey commissioned by Intuit QuickBooks of more than 3,000 U.S. adults, one in three Americans plans to start a business or side hustle within the next twelve months. That’s a 94 percent increase over the previous year, and the highest level of entrepreneurial intent QuickBooks has ever recorded in this survey.

The motivation is clear. Entrepreneurship now ranks as the top wealth-building strategy among Americans heading into 2026, outpacing saving, investing, and seeking higher-paying employment. People don’t just want to be their own boss. They see starting a business as the most direct path to financial security.

But the same survey that captures this remarkable surge in ambition also reveals a persistent tension. The desire to build something is real and widespread. The financial knowledge and access to capital needed to do it well? That’s where things get complicated.

Money Is the Number One Obstacle

When survey respondents were asked what stands between them and starting a business, nearly half said money. 

What makes this finding particularly interesting is the gap between perception and reality. Aspiring entrepreneurs estimated they would need around $28,000 to start a business. The actual median startup cost, according to the survey data, is closer to $12,000. That’s a perceived gap of more than double, driven by fear and uncertainty rather than facts. A significant number of people are either delaying or abandoning entrepreneurial plans because they believe the financial barrier is much higher than it actually is.

And yet 57 percent of survey respondents said they plan to launch regardless of economic conditions. Sixty-eight percent said they feel a sense of urgency to move forward. The desire is clearly there. The question is how to channel it with a clear-eyed understanding of what it actually costs to get started, and where that money can come from.

Financial Confidence Is the Hidden Gap

More than half of the respondents reported that they lack confidence in the financial side of running a business, including things like managing cash flow, tracking expenses, invoicing clients, and handling taxes. Seven in ten said that this lack of financial literacy makes it harder to achieve their personal financial goals.

The businesses that survive their first few years are almost always the ones where the owner has, at minimum, a working understanding of how money flows in and out of the business.

This matters for anyone thinking about starting a business, because financial management isn’t something you figure out after launch. The businesses that survive their first few years are almost always the ones where the owner has, at minimum, a working understanding of how money flows in and out of the business. You need to know what your margins look like, when cash will be tight, and how to read a basic financial statement.

Financial literacy is a learnable skill. Free resources, accounting software, bookkeeping professionals, and small business development centers exist specifically to help new owners build this foundation. The cost of a few hours invested in understanding your numbers before you launch is far lower than the cost of discovering financial problems after you’re already operating.

The Side Hustle as a Funding Strategy

One of the more interesting patterns the survey uncovered is the rise of what researchers are calling the “invisible entrepreneur.” Nearly half of respondents said they earned money from a side hustle in the past year. Yet only about one in five registered that business formally.

There’s a practical logic to this. Starting small through a side hustle before committing fully is a way to test demand, build revenue, and reduce the financial risk of leaving stable employment too soon. It also produces real market evidence that people will pay for what you’re offering.

From a funding perspective, this approach has another advantage. A side hustle that has been generating revenue for twelve to eighteen months, even at a modest level, gives a potential lender or financing partner something to evaluate. It demonstrates that the business model works, that customers exist, and that the owner can manage both the product or service and the financial side simultaneously. That track record is worth considerably more than a business plan alone.

Funding Options for the Early Stage

For aspiring entrepreneurs who are working through the question of how to fund a new venture, the landscape of options is broader than many people realize.

Personal savings remain the most common source of startup capital, and there is a real argument for using them strategically. Funding the first phase of a business yourself keeps equity intact and eliminates debt service in the early months when cash flow is most unpredictable.

Small business loans from community banks and credit unions are available to businesses with some operating history, solid financials, and a clear plan for how the funds will be used. The SBA also backs loan programs that reduce the risk to lenders and can make capital accessible to businesses that might not qualify for conventional financing.

For entrepreneurs who have been in business long enough to generate B2B invoices, AR financing becomes a relevant tool. Rather than taking on debt in the traditional sense, you draw against a revolving credit line secured by your outstanding receivables. It’s a structure designed for businesses that are already selling and invoicing but need access to capital before clients pay on their net-30, net-60, or net-90 terms.

Grants are worth exploring, particularly for businesses owned by women, minorities, veterans, or those operating in specific sectors. They are competitive and often require significant application effort, but unlike loans, they don’t require repayment.

Revenue-based financing and business lines of credit round out the picture for businesses with established revenue looking for flexible working capital without the structure of a term loan.

Funding Options for Growing Businesses

The funding question doesn’t end at launch. In some ways it becomes more complex as the business grows, because growth itself consumes cash. Hiring, inventory, equipment, and marketing all require capital ahead of the revenue they eventually generate.

The businesses that navigate growth most successfully tend to think about financing before they need it. A line of credit established during a stable period is far easier to access on favorable terms than one pursued during a cash shortage. The QuickBooks survey found that 57 percent of aspiring entrepreneurs plan to move forward regardless of economic conditions, which means the businesses that will thrive are the ones that build financial resilience early rather than chasing capital reactively.

What the Surge in Entrepreneurial Intent Actually Means

More Americans than ever see building a business as the clearest path to financial independence. The gap between intent and successful execution has always come down to preparation.

Entrepreneurs who understand what their startup will actually cost, who know their options for accessing capital before and after launch, and who build financial literacy alongside their product or service knowledge are the ones most likely to turn that entrepreneurial intent into something lasting.

The best time to think clearly about funding is before you need it urgently. The second best time is right now.