NEW YORK — A new model for business ownership is changing the landscape of small businesses, but it may not be for everyone.
A new study conducted by the Brookings Institution finds that more than 50 percent of small business owners surveyed were skeptical of the current model of owning and running their businesses.
It comes as many small business investors are looking for ways to reduce their risk and take advantage of a shrinking business market.
The Brookings study found that only about 1 in 3 small business ownership owners believed that the existing model was working for them.
Only 4 percent said they would use their business as an investment, while 15 percent said it would be a way to generate income.
In other words, about half of small owners are wary of using their business to make money.
“Small business owners are skeptical that they can be a part of the big picture and participate in the American economy and are willing to accept that uncertainty in the future,” the study said.
Most people don’t think their small business will thrive in the new economy.
“A lot of people are skeptical of what it takes to get their business up and running and they’re also worried about how they will manage their business if things go well,” said Mark S. Cohen, a professor of business and economics at Brookings and co-author of the study.
For many small businesses owners, this skepticism stems from the uncertainty surrounding their ability to get the businesses up and going.
The study found only 15 percent of owners were able to get new business licenses and only 14 percent had received the government’s approval to start a business.
In addition, only 29 percent of all small business licensees in the United States had received their first paycheck in three months, while only 16 percent had had their payroll in six months.
Small business ownership remains a minority of business ownership.
The Brookings report is the latest study to examine the state of small and medium-sized business.
Cohen and his colleagues surveyed more than 100 small and small-business owners in the U.S. and Canada.
They also surveyed about 4,000 business owners across the U, with the results coming out in September.
About 30 percent of the respondents were affiliated with a non-profit, including only 5 percent who were employees of a nonprofit.
The rest of the business owners were employees, owners, managers, or employees of large companies.
About 25 percent of those surveyed were part of a union, with 27 percent affiliated with unions.
The survey also found that, while most small businesses are in good shape, many are struggling.
The majority of small- and mediums-sized businesses reported they have lost money in the past year.
About 18 percent said their bottom line was impacted by their business failure.
About 40 percent of respondents said they had lost a significant amount of money in their past year, with most of that losses coming from losses from debt.
About 14 percent said this was a recurring issue and had become a recurring problem.
About 20 percent said the losses they experienced in the year before were the result of other business problems.
About 12 percent said these other business issues were the cause of their problems.
More than a quarter of small small business owner respondents said that they are losing money every year.
About a third of those respondents said their net worth is negative and they are experiencing significant financial difficulty.
About 30% of small entrepreneurs said they were in financial difficulty, compared to 5 percent of their larger competitors.
The findings are based on a survey of 2,500 small and large business owners in 18 U.s. and territories, including Canada.
This study does not represent the views of the American Business Association, the U the United Nations, or the United Kingdom’s Business Council.
The Washington Post contributed to this report.