How Much Money Does It Take to Start a Small Business?
Wells Fargo/Gallup Small Business Index Looks at Small Business Funding and Need for Business Knowledge

SAN FRANCISCO, Aug. 16 /PRNewswire-FirstCall/ -- Small business owners use an average of $10,000 to start their businesses, according to the latest Wells Fargo/Gallup Small Business Index study released by Wells Fargo & Company (NYSE:WFC). The new survey provides insight into one of the fastest growing segments in today's economy.

While most small business owners would do it again if given the chance to start a small business, the Index illustrated key findings around the issue of start-up capital. Many small business owners started businesses with their own money, and with very small amounts. Seventy-three percent of business owners surveyed primarily funded their businesses with their own personal savings, while 37 percent obtained loans and lines of credit. More than half of those surveyed (53 percent) indicated they would have had an easier time had more money been available at the outset.

The study also revealed a need for business knowledge and information. Only thirty-one percent of small business owners surveyed started with business plans. Forty-nine percent say they would have had an easier time had they asked for more advice from experienced business owners, while an additional thirty-nine percent indicated a better understanding of financial management would have been an asset.

"The reality of owning a small business is both exciting and a bit scary," said Rebecca Macieira-Kaufmann, executive vice president and head of the Small Business Segment for Wells Fargo. "The survey results provide us with real insight into what it takes to start and run a small business, and what many small business owners wish they had at the onset -- more capital and more financial management education. That's why at Wells Fargo, we provide both access to capital and access to resources via our local bankers, our website and our community partners."

Since the third quarter of 2003, the quarterly Wells Fargo/Gallup Small Business Index has surveyed small business owners on their perceptions of current conditions and future expectations relating to financial situation, revenues, cash flow, capital spending, number of jobs and credit availability. Results are based on telephone interviews with approximately 600 small business owners nationwide conducted May 22, 2006 through June 9, 2006. The margin of sampling error is +/- 4 percentage points.

About Wells Fargo

Wells Fargo & Company is a diversified financial services company with $500 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6,200 stores and the internet ( across North America and elsewhere internationally. Wells Fargo Bank, N.A. is the highest credit-rated bank in the U.S., receiving an "Aaa" by Moody's Investors Service -- its top credit rating -- and "AA+" by Standard & Poor's Ratings Services.

Providing financial products and services to more than one million businesses with annual sales up to $20 million in all 50 states, Puerto Rico and Canada, Wells Fargo is the #1 lender to small businesses in the United States in total dollar volume according to the most recent CRA data (2004).

The second largest national SBA lender in dollars, Wells Fargo is an SBA Preferred Lender in 30 states and the District of Columbia, and originated 4,165 loans for $579 million in 2005. Its diverse business services programs provide outreach and education to women, African American, Latino, and Asian business owners about financial services. Since 1995, Wells Fargo has loaned more than $32 billion to women and diverse business owners. For more information, please visit us at

About the Gallup Organization

For more than 60 years, the Gallup Organization has been a recognized leader in the measurement and analysis of people's attitudes, opinions and behavior. While best known for the Gallup Poll, founded in 1935, Gallup's current activities consist largely of providing marketing and management research, advisory services and education to the world's largest corporations and institutions.

Source: Wells Fargo & Company

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