Americans Think It Takes $28,000 to Start a Business. Owners Say Less Than Half

By Grace Kim

Americans believe it takes $28,000 to start a business. People who actually run businesses say the real number is less than half that.

That gap comes from survey findings reported by WSOC TV, and it's a striking one. The public's estimate of startup costs sits well above double what owners report spending to get their ventures off the ground.

Why does the perception gap matter?

The $28,000 figure isn't just a trivia stat. It functions as a barrier. If someone believes they need nearly thirty grand in the bank before they can open their doors, many will simply never try.

Owners, meanwhile, report actual startup costs below half that amount — under $14,000 by the survey's own framing. The people with firsthand experience consistently spent less than outsiders assume.

The takeaway is plain: the perceived price of entrepreneurship in America runs more than double the reported reality.

What do owners actually spend?

According to the WSOC TV report, founders' real outlays fall below $14,000 — the "less than half" benchmark set against the public's $28,000 guess.

That contrast matters for two reasons:

• Financing behavior. Would-be founders who overestimate costs may delay launching, borrow more than needed, or skip starting altogether.
• Policy and outreach. Programs designed to boost small-business formation may be messaging against a number that's inflated.

The gap between belief and experience, per the survey, is the story here — not any single dollar figure.

Who's counting?

The data pairs two distinct groups: the general public, estimating what a startup requires, and business owners, reporting what they actually spent. WSOC TV presented both figures side by side.

Owners' lower numbers suggest either leaner launches than outsiders imagine, or a public anchored to high-cost success stories. Both readings point the same direction: perception outruns reality.

In short, the people who've done it say it costs far less than the people who haven't.

What does this mean for aspiring founders?

If the public's $28,000 estimate is keeping Americans on the sidelines, the owners' sub-$14,000 reality could pull them in. The survey implies the biggest cost of starting a business may be the belief that you can't afford to.

For anyone sitting on a business plan because the numbers look steep, the data suggests checking those assumptions against what founders actually paid.