Entrepreneurship Through Acquisition (ETA) is a growing pathway for entrepreneurs who want to run a business without starting one from scratch.
Instead of building a company from the ground up, ETA entrepreneurs acquire an existing, profitable small business and step in as the new owner-operator. These are typically businesses with strong cash flow, loyal customers, and a long history of success, but the original owner is ready to retire or move on.
Why Buy a Business Instead of Starting One?
There’s no single “right” way to become an entrepreneur. But ETA appeals to a wide range of people because it flips the typical startup risk curve:
Startups vs ETA Acquisitions:
- Startups: Over 90% fail
ETA Acquisitions: You’re buying something that already works - Startups: It can take years to generate revenue
ETA Acquisitions: Cash-flowing from day one - Startups: Hard to finance without traction
ETA Acquisitions: Lenders will fund acquisitions with proven income - Startups: Full of unknowns—customers, team, product
ETA Acquisitions: You get clear financials, loyal customers, and operational history
By acquiring an established business, you skip the most volatile phase of entrepreneurship and go straight into ownership and improvement. You can still grow, expand, and innovate—but you’re doing it from a stable foundation.
How ETA Works
The basic ETA process looks like this:
- Search: You find a good small business to buy that aligns with your skillset, financial, and geographic requirements.
- Acquire: You negotiate a price, secure financing (often with a bank loan), and bring in investor capital if needed.
- Operate: You step in as the CEO and begin running the business.
- Grow: Over time, you improve the business, professionalize operations, expand offerings, and increase value.
- Exit (Optional): Some ETA entrepreneurs hold their business long-term. Others eventually sell it—hopefully for a significant gain.
Who are ETA Entrepreneurs?
ETA attracts a unique type of entrepreneur. Many are former consultants, bankers, or operators with strong business experience. A growing number come from top MBA programs, where ETA has become a formal area of study. What they all share is a desire to run a business—and a recognition that buying one is often a smarter path than starting from scratch.
Some go the traditional search fund route—raising money upfront from investors to fund their search process. Others choose the self-funded path, using personal savings to search and only raising money when they have a deal ready to go
Both models aim for the same thing: buying a great business, taking over as CEO, and building long-term value.
Why ETA is Gaining Momentum
Several trends have pushed ETA into the spotlight:
- Baby Boomer Retirements – Millions of small business owners are looking to retire, many without succession plans.
- Accessible Lending Options – SBA loans and other bank financing options make acquisitions possible for people without much personal capital.
- High-Quality Targets – Many small businesses are profitable, recession-resistant, and under-professionalized—ideal candidates for new ownership.
- Increased Visibility – ETA is now taught at top business schools and covered in mainstream media.
For aspiring entrepreneurs, it’s a chance to take over something real and make it even better. For investors, it’s a way to gain exposure to cash-flowing small businesses without the volatility of startups or the competition of larger private equity deals.
Where ETA Funding Partners Fits In
At ETA Funding Partners, we focus on supporting self-funded searchers—entrepreneurs who find and vet deals themselves, then raise capital to close. We step in at that critical moment, providing the funding they need to become owners.
If you’re an aspiring searcher, ETA may be the most rewarding path you’ve never considered. And if you’re an investor, it may be one of the most overlooked corners of private markets.
Either way, ETA is about backing small businesses, real entrepreneurs, and real cash flow. And we’re here for it.