Founded Outdoors and REI Co-op Path Ahead Ventures published a new report in which they noted that small outdoor industry businesses tend to rely on Chinese manufacturing to succeed, with many unfamiliar with common financing tools.
As noted by Shop Eat Surf Outdoor, the survey included input from over 80 outdoor business owners and founders with under $10 million in annual revenue. It also explores topics such as financing, supply chain, marketing, teams, trade shows and sales.
“Understanding and supporting the needs of small outdoor businesses is critical,” said senior program manager, REI Co-op Path Ahead Ventures, Keenan Corrigan. “However, many outdoor business owners operate without access to the information, capital or networks that are readily available to larger brands.”
Key data included:
- 70 percent of respondents make “some” goods in China, with 59 percent reporting some U.S.-based manufacturing.
- Common 2024 business challenges include marketing, consumer sales, financing and fundraising, with hardgood and softgood companies pointing to production and manufacturing.
- Social media and word of mouth were top marketing choices.
- Over 35 percent of founders and business owners are not familiar with financing tools such as merchant cash advances, inventory financing, purchase order financing, accounts receivable financing and supplier financing.
- Financing tends to be more challenging for women founders.
- 81 percent of teams with a woman founder or owner had at least one female employee, compared to 60% of businesses without any women founders or owners.
- 65 percent of teams with a founder or owner of color had at least one employee of color, compared to 38 percent of businesses without any founders or owners of color.
“When small businesses are thriving, the entire outdoor industry becomes stronger,” said Katie Doherty, who leads partnerships for Founded Outdoors. “Our emerging founders and business owners are the drivers of innovation, the entry points to new communities and an essential component of a more resilient, inclusive and dynamic outdoor industry.”
