US entrepreneurs overestimate startup costs by more than double

A significant gap exists between the perceived and actual costs of starting a business in the United States. According to the Entrepreneurship in 2026 report from Intuit QuickBooks, Americans believe it takes an average of $28,000 to launch a business, while current owners report a median actual startup cost of approximately $12,000.

This discrepancy occurs alongside a surge in entrepreneurial interest. One in three U.S. adults reported plans to start a new business or side hustle in 2026, representing a 94% increase from the previous year. Entrepreneurship has now surpassed traditional savings, investing, and standard employment as the primary wealth-building strategy in the country.

Despite this ambition, financial readiness remains a challenge. Only 13% of prospective entrepreneurs possess most of the funds required to launch, and 32% have less than a quarter of the necessary capital. Most aspiring founders intend to fund their ventures through personal savings or credit cards rather than commercial loans.