The Ultimate List of Small Business Statistics for 2023

knowing what’s happening in the small business world can help you better manage your risks and opportunities.

Small entrepreneurs need to be extremely inventive, persistent, and brave to survive in a highly competitive market. With thousands of new small businesses launched every day, it can be tough to stand out from the crowd.

This article will discuss small business Statistics, trends, and outlooks during and post-pandemic. I will also include highlights, examples, and some actionable insights as I go along.

Here’s a look at the top small business statistics in 2023.

Let’s get started.

General Small Business Statistics 2023

1. Small businesses account for 90% of all global companies

worldbank

According to the World Bank, Small and Medium Enterprises play a significant role in our economy, accounting for around 90% of businesses and 50% of jobs worldwide. Formal SMEs contribute around 40% of the national income in emerging companies too.

The World Bank also notes small businesses are less likely to obtain loans than large firms, and often rely on internal funds, cash from family, and personal savings to fund their companies. Around 65 million firms are expected to have unmet financing needs each year.

2. Total U.S. employment is projected to grow from 153.5 million to 165.4 million from 2020 to 2030

source

Total U.S. employment is projected to grow from 153.5 million to 165.4 million from 2020 to 2030, an increase of 11.9 million jobs, or 7.7 percent.

Excluding a projected increase of 9.3 million jobs attributed to the COVID–19 recovery from low base-year employment for 2020 and its associated recession, employment is projected to increase by 1.7 percent.

3. 39% of small business owners work 60 hours a week.

SCORE

While being your own boss may seem like a lucrative option, it isn’t easy.

It’s not just about the hours, Small business owners work more, sure. But they’re also under more pressure. This is true whether they have employees or not.

Small business owners have to work harder than any other employee. Over 80% of them work even at nighttime and almost 90% during the weekends. Some70% work at least 40 hours a week, while 39% dedicate over 60 hours to their business.

But even those aren’t the biggest challenges small business owners face. Here’s what they said weigh on them the most:

4. 29% of small business owners start their business to be their own boss.

businessnewsdaily

The main reason most people want to become their own boss is the freedom, satisfaction, and flexibility it offers them. Nothing beats the freedom of being the boss.

But Why?

With freedom comes the flexibility to make your own schedule and not have to answer to anyone. You’ll also have the satisfaction of making your own decisions.

Also Starting your own business can be risky, but with that risk comes reward. New entrepreneurs are attracted to the idea that they can build something big from scratch, at least something bigger than what they could as salaried employees.

5. 5.5 million businesses in the UK are small companies in 2023

startups

Close to 6 million of all UK businesses are small companies(5.5). Compared to 5.9 million in 2020, that’s a significant fall of 6.6%.

As shown by recent small business statistics, the UK sees nearly a fifth of small companies operating in the construction industry. Professional, scientific, and technical activities make up for 15% of all small businesses, whereas the wholesale and retail trade and repair sector accounts for 9% of SMBs. Only 1% is in the mining sector.

However, SMEs still account for 99.9% of the UK’s business population. This total is a clear indication of the important role small businesses continue to play in the national economy.

6. 69% of startup businesses begin at home.

2012 Global Entrepreneurship Monitor report (PDF)

More than half of U.S. entrepreneurs continue to operate their businesses from home long after those businesses are up and running. The study examined Total Entrepreneurial Activity (TEA) across industry sectors in the U.S.

7. 90% of Small businesses don’t offer childcare support of any kind.

hbr

Most small businesses don’t offer childcare support for their employees. But recently Companies have responded by offering new child–care benefits such as backup child care and stipends for college counseling services.

8. 90% of startups fail. An average of 123,000 out of 137,000 new businesses fail daily

Forbes

If your startup lasts, you’re lucky. You’ve been able to do something that 90% of new businesses haven’t.

Even though there’s a lot of luck involved in the success stories like Google and Facebook, there are more humble reasons why other startups succeed. They have a product that meets a need, they don’t ignore anything, they grow fast, and they recover from the hard-knock startup life

9. 98.6% of American Manufacturers are Small Businesses in 2023

americascu

Small business statistics revealed that companies with a little over 20 employees represent 75.3% of the US manufacturing industry. Apparel is the most manufactured product accounting for 22.9% of products created by these companies. Other products, such as furniture and fabricated metal products, followed at 18.4% and 16.4%.

10. 99.8% of Australian businesses are small-sized companies.

oecd-ilibrary

Small businesses are the leading force of the Australian economy. Nearly all businesses are considered to be small or medium-sized companies. As seen in the recent small business statistics, Australia has 62% are non-employing and 98% are employing less than 20 people.

11. California ($158 billion), New York ($50 billion), and Massachusetts ($36 billion)s are the top three states with the largest number of venture capitalists.

statista

California showed its economic power last year by attracting no less than 158 billion dollars of venture capital investments.

New York and Massachusetts follow behind with the latter receiving $50bn and the former, $36bn.

12. California is the US state with the highest number of small businesses in 2023 ( 4.2 million )

oberlo

When observing small business statistics by state, it’s evident that California leads the pack with 4,203,260 small businesses. Texas comes next with 2,679,964, followed by Florida with 2,494,279, and New York with 2,168,799 small businesses.

13. In a 2023 survey of over 500 founders, small business owner statistics showed that 75% of startups offer work-from-home benefits.

Forbes

As we’ve long known, remote work has a host of advantages for workers like:

1. Better Work-Life Balance
2. Less Commute Stress
3. Location Independence
4. Improved Inclusivity

14. It takes 4.2 days to start a business in the US.

worldbank

It turns out that you can have your business up and running in less than a business week. The UK follows closely with 5 days needed to start a business there. This is significantly shorter compared to many other countries worldwide. For instance, starting a business takes 9 days in China, 11 in Ireland, and 18 days in India.

15. JULL Labs is the most well-funded tech startup in the US, with $15 billion in disclosed equity funding.

statista

As of August 2023, the most well-funded tech startup in the United States was JUUL Labs. JUUL Labs is an e-cigarette company based in California, with over 15 billion U.S. dollars in disclosed equity funding

16. More than 50% of Small Business owners believe the US would remain the center of technology after a decade.

source

According to small business statistics, More than 50% of small Business owners believe that The USA will be the center of tech

17. Small business statistics reveal that 39% of Small Business owners feel China will be the global tech center by 2028

websitebuilder

Small business growth statistics reveal that 39% of SMB owners feel China will be the global tech center by 2028. Startup USA’s Global Startup Cities report backs this up. It also finds Beijing and the San Francisco Bay Area to be standout startup hubs, but London is quickly catching up.

18. Small businesses accounted for 1.6 million new jobs in 2023

smallbiztrends

In 2023, small businesses accounted for around 99.9% of all United States businesses, delivering employment in the form of 1.6 million net new jobs over the year. Additionally, the United States number of small businesses increased by 2.1% throughout 2019 to 2023.

19. Small businesses are responsible for 48% of the jobs in the UK.

gov.uk

Accounting for 99.3% of all businesses, small companies employ the majority of the UK workforce (48%). At the same time, UK SMBs note a 36.3% turnover.

20. Small businesses in the US employ 61.2 million workers.

pieinsurance

Small businesses are very important to the economy. They create 1.6 million new jobs annually and are responsible for 60.6 million jobs across the US, which accounts for 47.1% of the total US workforce.

21. The average U.S. citizen works 1779 hours a year.

Forbes

Small businesses are known for an ironclad work ethic that is required to help them break out of the small business label, and that’s why most owners and employees work a lot. The U.S. is the eleventh most hard-working country, clocking in about 1779 hours a year.

22. The most profitable small businesses are accounting, tax preparation, bookkeeping, and payroll services, with a profit margin of 19.8%.

Forbes

The most profitable small businesses worldwide are in accounting, tax preparation, bookkeeping, and payroll services, which net about a 19.8% profit margin on their services. The second most profitable small business niche is legal services with a profit margin of 17.8%, followed by oil and gas extraction with a profit margin of 16.4%.

The Size of Small Businesses Statistics for 2023

23. There are 33 million small businesses in the America.

uschamber

As US small business statistics show, 33 million businesses have fewer than 500 employees. 98.2% of them have less than 100 employees, and firms with less than 20 employees make up 89% of all businesses in the US.

24. A small business can have 250 to 1,500 employees.

fundera

Depending on your industry, a small business could be defined as business with a maximum of 250 employees or a maximum of 1,500 employees. They’re privately owned corporations, partnerships, or sole proprietorships that have less revenue than larger businesses.

25. Out of the 33 million small businesses, 4 million are microbusinesses with one to nine employees.

logmeininc

There is nothing small about small businesses. In fact, as of 2023, there were 4 million SMBs in the U.S. – that’s 99.9% of all businesses – with 4 million of those being micro businesses with one to nine employees. And not only that, but small businesses create 1.5 million jobs annually and account for 64% of all new jobs in the U.S.

26. There are 582 million entrepreneurs in the world.

Global Entrepreneurship Monitor

There are more than 582 million people in this world in the process of starting or running their own business. This number — released by the latest Global Entrepreneurship Monitor that surveyed 65 different economies worldwide — reinforces the impact entrepreneurship has on economic growth and societal well-being.

27. 15 million Americans work full-time for their own business.

smallbizgenius

These entrepreneurial statistics from FreshBooks underscore a significant shift towards independent work. According to a separate study from Intuit’s QuickBooks, 28.2% of American workers had some form of self-employment in 2019. One out of every five workers plans a complete change of career once they get into entrepreneurship.

28. The number of small businesses in the U.S. has doubled since 1982.

semrush

The number of small businesses in the United States has increased 54 percent since 1982. These include corporations, partnerships, and sole proprietorships. About half of the 20 million businesses operate full-time, the rest part-time.

2023 Small Business Residential and Commercial Services Sector statistics

29. It’s estimated that by the year 2040, 95% of purchases will be through e-commerce

linkedin

The number of small businesses in the United States has increased 54 percent since 1982. These include corporations, partnerships, and sole proprietorships. About half of the 20 million businesses operate full-time, the rest part-time.

30. The number of small businesses in the U.S. has doubled since 1982.

linkedin.

Mobile eCommerce stats show the importance of supporting mobile devices in online shopping. The portion of eCommerce sales made using smartphones and tablets will continue to grow, and overall online sales will rise to 95% from just 18% in 2018.

31. 92.6% say the visual dimension is the #1 factor affecting their purchase.

neilpatel

The number of small businesses in the United States has increased 54 percent since 1982. These include corporations, partnerships, and sole proprietorships. About half of the 20 million businesses operate full-time, the rest part-time.

32. 90% of shoppers believe image quality is the most important factor when making online purchases.

linkedin

According to Justuno, 93% of consumers consider visual content to be the deciding factor in purchasing decisions. Additionally, according to a study made by Etsy, about 90% of surveyed shoppers believe the quality of eCommerce images was very important when deciding whether or not to make a purchase.

33. A two-second delay in load times increases the shopping cart abandonment rate to 87%.

radware

Even a 2-second delay in website load time can increase abandonment rates by 87%. Level of customer experience . If a user finds that your website is too slow, where it takes seconds before pages can load completely, their customer experience on your site becomes less than ideal

34. 85% of customers trust online reviews and testimonials as much as personal recommendations.

INC

If you think online reviews get lost in all the Internet noise, think again. Research shows that 91 percent of people regularly or occasionally read online reviews, and 85 percent trust online reviews as much as a personal recommendation. And they make that decision quickly: 68 percent form an opinion after reading between one and six online reviews.

35. 84% of users would abandon a purchase if the connection is not secure.

trendyminds

an unsecure site could lead to fewer conversions. According to a GlobalSign study, up to 84% of users would abandon a purchase on an unsecure connection.

36. By the end of 2021, 73% of e-commerce sales took place on mobile devices.

statista

In fact, eMarketer estimates (via Statista) that in 2021, mobile will make up about 73% of all e-commerce sales ; as recently as 2016, it represented 52.4%. This means that almost three out of every four dollars spent on online purchases are coming from mobile, and that rate is accelerating.

37. 68% of small businesses don’t have a proper conversion rate optimization strategy for their stores.

saleslion

Surprisingly, Around two-thirds of businesses still don’t have a structured CRO strategy in place

38. 62% think shipping details are essential.

flexe

Speed of shipping is often touted as the most important factor in online delivery, but research suggests that Details like reliability, convenience, and cost are more valuable to today’s consumers.

39. 60% of shoppers say website usability is important for them.

hubspot

In a survey of almost 1,000 US consumers, 60 percent stated that website usability is important for them in an online shop. You can improve the usability of your website by using visual hierarchy, colors, and consistency to make it as easy to use as possible.

40. In 2021, mobile e-commerce revenue accounted for 53.9% of total U.S. e-commerce revenue.

statista

 By 2025, more than ten percent of all retail sales in the United States is expected to be generated via mobile commerce. This figure would represent a growth of almost seven percentage points since 2018. M-commerce was forecast to account for nearly six percent of all retail sales in 2021.

41. 93% look for product reviews.

qualtrics

Customer reviews help your business in several ways, from helping your target shoppers discover your retail store to convincing on-the-fence buyers to purchase from you.

Reviews helps in:

• Gain your target buyers’ trust
• Increase your store’s foot traffic
• Build social proof
• Improve your SEO

42. 56% of internet users also use their mobile phones to purchase products online and 66% of consumers use shopping apps on their mobile devices – be it a mobile phone or a tablet.

oberlo

More than half (55.4 percent) of internet users use their mobile phones to purchase products online and seven in ten (69.4 percent) say they use shopping apps on their mobile devices – be it a phone or a tablet.

43. 50% of total e-commerce revenue comes from mobile.

oberlo

Retail m-commerce sales grew to $37.96 billion in 2020, up from $30.2B in 2019, nearly 50% of total retail e-commerce sales of $79.41 billion . Stats on m-commerce in India  point to a value of about $23.6 billion  in 2018 . While all this might seem measly compared to the $1.5 trillion Chinese smartphone users spent in 2019 , the India  figure would mark a more than 6X jump from 2015

44. Red buy buttons can increase sales and conversions on e-commerce websites by as much as 34%.

sharkbyte

Red buy buttons can increase sales, and conversions on e-commerce websites can increase by 34%. (CXL) But the study also found that it is because it is a high contrast color that stands out from the rest of the page, not particularly because it is the color red.

45. 24% of people will abandon their carts immediately If account creation at checkout is required.

shopify

The Statistic: 23% of users will abandon their shopping cart if they have to create a new user account. Some sites are so dead set on their membership model, that they completely ruin their chances at converting some users. Face it: Some users don’t want to create account. They just want their stuff.

46. 5% of small and mid-sized businesses believe that free shipping increases their sales profits.

syncoria

Undoubtedly offering free shipping helps to drive conversion toward your eCommerce. The concept of free shipping is something that every consumer would like to have. Therefore they often select an eCommerce platform for shopping, which has this service available. One can experience significant consumer behavior when offered free shipping.

47. On average, only 1.94% of e-commerce website visits convert into a purchase.

appmysite

On average, only 1.94 percent of ecommerce website visits convert into a purchase. Roughly speaking, this means that only one in 51 website visitors actually buys something . That’s a lot of missed opportunities.

48. Only 1% of users say e-commerce websites meet their expectations every time

noaignite

According to a CEI Survey, 86% of buyers will pay more for a better customer experience. But only 1% of customers feel that vendors consistently meet their expectations. These statistics highlight the magnitude of the growth opportunity before us. What if you just increased the percentage of consistently happy customers by 5%? For any company, large or small, that would be a game-changer in terms of revenue and profit.

49. EdTech and eCommerce are the most popular industries for startups in 2021.

geomotiv

One of the most important steps for startups is to identify industries that are set to experience great growth rates. You will be able to take advantage of these small business stats to further your business too.

The most lucrative industries for startups are those that are still likely to be around a decade from now. EdTech, eCommerce, streaming services make it to the top of the list while healthcare, leisure & entertainment, and logistics are all up there.

50. A 80% increase was seen in the warehouse and self-storage industry in 2021.

whatremovals

We have witnessed a huge boom in the warehouses, storage units, and non-residential buildings industry. One notable franchise in this industry is UNITS, which had the most SBA loan approvals of any company in this industry during 2021.

Other popular industries included gas stations (57.86%), Beer, Wine, and Liquor Stores (50.53%), and hospitality (47.12%). Part of this growth could be attributed to the gradual recovery from the heights of the Covid-19 health and economic crisis. However, the increase in many of these industries has exceeded the pre-pandemic levels.

2023 Small Business Retail Sector statistics

51. The average cost of starting a retail business is $32,000

mileiq

How much does it cost to start a business in retail? 

The average cost of starting a business in retail is $32,000 . However, 42% of small business owners reported opening a retail store with only $5,000.

52. 42% of Retail store owners launched their business at only $5,000

smallbiztrends

42% of retail businesses owners get started with less than $5,000 and 58 percent got started with less than $25,000. In addition, 65 percent admitted to not being fully confident they had enough money to start their business.

An overwhelming 93 percent said they calculated a potential run rate of shorter than 18 months.

53. Starting a food business can set you back up to $125,000

bls.gov

We’re living in an era of celebrity chefs, so it’s not surprising that so many of us have dreamed about being restaurateurs. Starting your food business can cost $125,000. According to the Bureau of Labor Statistic , the number of food and beverage establishments grew from 2019 through early 2020, but there’s one major caveat: most of them will fail.

54. Restaurant franchises may require an initial investment of as low as $25,000

apicbase

according to small business statictics in 2023, There are 15.1 million restaurant industry employees in the United States .Restaurant franchises may require an initial investment of as low as $25,000

55. The top industry for small businesses is food and restaurants.

guidantfinancial

Small business industries tend to vary widely based on location, economy, and the entrepreneurs that start them. However, the five most popular small business industries are:

• Food & restaurants
• Retail & fashion
• B2B (Business to Business)
• Health, beauty, and fitness
• Residential and commercial

56. Retail and business services account for 13% in shares.

fool

Small business statistics from 2020 revealed that retail and business services are the most popular categories as they are tied to the number one spot. The construction and contracting industry immediately followed at 12%. Other sectors such as food, restaurant, residential, and commercial accounted for 9% of the total share each.

57. Small businesses with 50 or fewer employees account for 98.6% of all retail firms.

smallbiztrends

Small businesses also hire 39.8% of all employees involved in retail. The average monthly revenue from retail firms is $22,341. These firms have an average gross margin of 51%, and the owners tend to reinvest in large local chains when they earn their profit.

2023 Small Business Owner Demographic statistics

58. Gen-Xers account for 46% of small businesses.

vcita

Gen-Xers account for the largest portion of small businesses and Boomers follow with 41%. Millennials come in third, accounting for 13% of small businesses. Only 1% of small business leaders are Gen-Zers.

59. Over 4 million small businesses in the United States are owned by minorities.

sbc.senate

There are now more than four million minority–owned companies in the United States, with annual sales totaling close to $700 billion.

60. 34% of women business owners hold a Bachelor’s degree

labusinessjournal

According to small business statistics, the majority of the women who own a business in the world today are highly educated, with 34% holding a bachelor’s degree, and 27% holding a master’s degree. Around 8% of business owners interviewed in the study had a Doctorate degree.

61. 70.8% of US business owners are Caucasian

zippia

Hispanic or Latino people make up 14.39% of US business owners, followed by Asian (6.17%) and African American (6%).

Interestingly, immigrant-owned businesses account for 30% of small business growth in the US. In 2019, 3.2 million immigrant entrepreneurs comprised 21.7% of all business owners.

Small businesses owned by immigrant entrepreneurs were particularly prominent in construction, transportation, utilities, and retail trade industries.

62. Young entrepreneurs are 188% more likely to side-hustle with a small business.

oberlo

The craze involving passive income is becoming more prominent every year, which has driven many young entrepreneurs to seek side hustles. Millennials and Gen Z people are about 188% more likely to start a small business as a side hustle than other age demographics.

63. 19.4 million non-employer businesses in the U.S. are sole proprietorships.

verizon

Remember when we talked about non-employer businesses? Well, about 19.4 million of them in the U.S. are one-man-show sole proprietorships, 1.6 million are partnerships, and the smallest amount of them, 1.4 million, are corporations.

64. According to small business owners statistics provided by UENI in 2020, 45% of small business owners are female.

fortunly

This is an immense jump from 1972, when women owned only 4.6% of all businesses.

65. Between 1997 and 2017, female entrepreneurship grew by more than 114%.

cozzalaw

According to the 2017 State of Women-Owned Businesses Report, from 1997 to 2017, the number of women-owned businesses grew 114% .while the overall national growth rate for all businesses was only 44%. As of January 2017, there were more than 11.6 million women owned businesses in the U.S. alone

66. 47% of women started a business in the last year, compared to 44% of men.

legaljobs

The reason most women step into the world of entrepreneurship is the desire to pursue their passion, with 48% saying it was their main motivator. Financial independence is the second reason which was cited by 43% of the women, and flexibility was in third place winning 41% of the votes.

67. 71% of small businesses run by women are profitable while 80% of small businesses men-led are profitable.

capitalwithstrategy

While the growth of women-owned small businesses is rising, that number is still noticeably behind the growth rate of small businesses owned and operated by men. One study of small business stats shows that 71% of women-led small businesses are profitable while 80% of small businesses owned by men are profitable.

68. 36% of Black small business owners opened a small business because they were ready to become their own boss, and 17% were disillusioned with corporate America.

thezebra

The majority (36 percent) of Black small business owners decided to go into business for themselves because they were ready to become their own boss. Twenty-four percent wanted to pursue their passion, 17 percent were inspired with a new business idea, and 17 percent were dissatisfied with corporate America. The plurality (42 percent) of Black entrepreneurs are very happy as small business owners.

69. 49% of small business loans from banks go to white-owned businesses, while only 3% of loans went to Black-owned businesses.

Forbes

Small business owners have had a tough time navigating through the Covid-19 pandemic all across the United States. Black-owned business owners, in particular, have been hit especially hard by the pandemic and shutdowns. Many of them were operating with slim margins to begin with and did not have a safety net before the pandemic began.

2023 Small Business Owner’s Age statistics

70. According to the latest small business statistics, an average small business owner is around 50.3 years old.

mileiq

How Old is the Average Small Business Owner? We read a lot about the young CEOs that build successful businesses in the U.S., but the average age of a business owner is 50.3 years old and earns 21% more than the average U.S. population.

• 50-59 years old: 35 percent;
• 40-49 years old: 25 percent;
• 60-69 years old: 18 percent;
• 30-39 years old: 14 percent;
• 18-29 years old: 4 percent; and
• 70+ years old: 4 percent.

71. People aged 50-59 are the most common small business owners.

score

People in this age bracket account for 35% of all small business owners, make them the most popular group. This is followed by people aged 40-49 at 25% and 60-69 at 18%.

72. 45 is the most successful age to be a small business owner.

uschamber

Small business owners are very diverse when it comes to their age, but the most successful age to start a small business is 45. That’s because people in that age demographic aren’t first-time entrepreneurs, and they have a lot of life experience to fall back on.

73. Millennials will make up 75% of the global workforce by 2025.

linkedin

Millennials, who are already emerging as leaders in technology and other industries and will comprise 75 percent of the global workforce by 2025, want to work for organizations that foster innovative thinking, develop their skills, and make a positive contribution to society

74. Millennials currently make up 35% of America’s labor force.

pewresearch

Millennials are the largest generation in the U.S. labor force. More than one-in-three American labor force participants (35%) are Millennials, making them the largest generation in the U.S. labor force.

75. Millennials already run over 16% of small businesses in America and this number is set to grow.

guidantfinancial

Millennials were found to be the generation most likely to have some type of small business , according to small business stats survey.

76. Small businesses with founders aged 55+ tend to survive.

olddoglearning

Small businesses with founders aged 55+ tend to survive and have fewer employees, in contrast to the opposite for younger populations. a 2018 study of more than a million startups reported that, “the highest-growth new firms not only appear to come from those in middle-age, but also tend to come at even older ages”

2023 Small Business Owner’s Degree statistics

77. Most small business owners don’t have a college degree.

The majority of business owners are dropouts or never went to college. Only 17% of small business owners have a BA. Moreover, 30% graduated from high school but didn’t go to college, while 31% have an associate degree.

The majority of small business owners never went to college or are dropouts.

Only 26% of owners actually have a bachelor’s degree. Some 20% of small business owners graduated from high school but didn’t go to college. Around 5% didn’t even finish high school.

This shows that you don’t need to have a degree to start your own business.

78. The majority of business owners are only educated to the high school level.

cnbc

Statistics show that most business owners are educated to just the high school level, making up an impressive 33%. Owners with a Bachelor’s degree followed at 29%. Associate degree and master’s degree came in at 18% and 16% respectively. The doctorate was last at 4%.

2023 Small Business income statistics

79. The base salary of a small business owner in the US ranges between $30,000-$130,000/year

The average small business owner makes $65,784/year.

Entry-level small business owners with less than one year of experience earn $30,913/year on average. Those with 1-4 years of experience generally make $50,200/year.

Meanwhile, mid and late-career small business owners with 5-19 years of experience are estimated to earn $61,000-$68,000/year. Entrepreneurs with 20 years of experience or more make $76,253/year on average.

80. About 86% of small businesses report less than $100,000 in yearly revenue.

86.3% of small business owners tend to make less than $100,000 a year and the average salary of a small business owner is somewhere around $67,919 a year.

81. Lawyers make the most money, with an average income of $141,890.

By far, the biggest profits are made by lawyers, with the average income clocking in at $141,890. Software and App developers come in second place, yielding an average annual return of about $106,710. They’re followed by independent artists, writers, and performers who earn $98,960 on average.

82. Non-employer small businesses in the U.S. averaged an annual revenue of $46,978.

Non-employees have a 30% smaller salary than the average small business owner, coming in at $46,978 a year.

83. The average revenue of a small business with employees is $4.9 million in 2021.

As stated more than a few times in this article, what constitutes a small business can vary wildly, which gives us all kinds of interesting numbers. For example, a small business that doesn’t employ anyone makes about $44,000 per year on average, but if it employs someone, that average number jumps dramatically to $4.9 million in 2021.

84. Small businesses with one to four employees averaged $387,000 in revenue per year.

Employees aren’t the only thing that dictate the success rate of a small business, but they do play a major role. Businesses with up to four employees average $387,000 in revenue per year, while those with up to nine take that number to over $1,000,000. As the number of employees grows, so does the average revenue.

85. On average, CEOs of the top 350 firms in the USA were paid $21.3 million in 2019.

According to this research, this represents a 14% increase from 2018. Nowadays, CEOs earn 320 times more than typical workers. This figure is expected to keep rising despite the coronavirus pandemic.

86. The largest percentage of small businesses (24%) earned between $1 and $5 million in 2018.

Only 1% made $150 million or more in gross sales or revenues, 23% earned less than $100,000, and 14% earned between $100,000 and $250,000.

87. 47% of the private-sector workforce is employed by a small business.

According to small business statistics from the SBA, small businesses comprise 99.9% of US businesses and employ 47.1% of US employees

88. Small businesses employ more than 59.9 million people

while 99.9% of all businesses in the U.S. are classified as small businesses, they employ less than half of the workforce — 47.3%, or 59.9 million people, according to 2019 U.S. Small Business Administration statistics

89. 23% of small business owners list lack of capital or cash flow as their number one challenge

From getting capital to managing outstanding receivables, a recent study provides insights into common cash flow concerns for entrepreneurs.

2023 Women-Owned Small Business statistics

90. 1,817 women-owned businesses were opened per day in 2018 and 2019.

The average growth rate of small businesses owned by women is outstanding. The progress of creation has taken an especially fast turn in recent years. Reports show that the small business owner demographics are dramatically different from how they were before.

Between 2002 and 2007, only 714 businesses were opened by women on average. As the recession and recovery period occurred between 2007 and 2012, the average number increased to 1,143.

91. 17% of all women-led businesses are Latinas

In 2017, Latinas owned 17% of all women-owned businesses . This breaks down to approximately 1,996,500 firms which employed 599,700 workers and generated $103 billion in revenues. Moreover, the number of Latina-owned firms has grown 7% over the past year compared to just a 9% annual growth over the past decade

92. According to the Small Business statistics, 19.9% of businesses are owned by women

According to the Census Bureau’s 2019 Annual Business Survey, about 19.9% of all businesses were owned by women. Of the nearly 1.1 million women-owned businesses, roughly 92% had fewer than 20 employees.

93. 31% of women who own businesses are age 25-44

Women ages 25–44 have been nearly three times as likely as men not to be working due to childcare demands. Women already were likelier to work flexible schedules before the pandemic, and greater flexibility helps many employees continue to balance work and home life.

94. 62% of women business owners are between 40 and 59 years old.

Around 80% of these women have college degrees, women entrepreneurs statistics show. Building and gathering experience takes a lot of time, which explains why only 30% of these women are younger than 40. This means that it takes years of dedication, commitment, and hard work to succeed in building connections, relationships, and capital to run a business effectively.

95. 88% of women-owned businesses generate less than $100,000 in revenue.

According to the small business revenue statistics, firms led by women that make over $1 million in revenue jumped by 46% over the last decade. This would be quite an impressive number, but these businesses make only 1.7% of all women-led companies. These businesses generated $135 billion in revenue, which makes for 8% of total small business revenue for all women-owned firms.

96. Between 1997 and 2017, female entrepreneurship grew by 114%.

Between 1997 and 2017, the number of women-owned businesses increased by 114% — a rate 2.5 times higher than the national average.

The net result? Last year, 11.6 million US businesses were women-owned. They employed nearly 9 million people and generated more than $1.7 Trillion in revenues.

97. In 2018, 207,900 of women-led businesses (1.7%) generated more than $1 million

In 2018 there were 207,900 women-owned firms that generated $1 million or more, representing 1.7% of all women-owned firms. As regular readers of this column know, more solo entrepreneurs are breaking the $1 million mark than ever before.

98. In the U.S., 12.3 million businesses are owned by women

12.3 million is roughly equal to 42% of all US companies. To put things in perspective, there were around 402,000 female-owned businesses in 1972. And this percentage is only expected to grow in the coming years, according to woman-owned business statistics.

99. The total revenue by women-owned businesses is around $1.9 trillion.

The contribution by businesses run by women has steadily grown over the years. In 2008, 1.7% of businesses owned by women (207,900) made more than $1 million. This has increased by 46% in the last 11 years. And small business facts from 2021 reveal the total contribution of women-led firms has now reached $1.9 trillion.

100. Women make up 52.34% of sole proprietorships.

Women are more likely to have a sole proprietorship than running a business with employees. In fact, studies show that the number of female founders is less represented in bigger companies. Only 32.59% of businesses with four or more employees are led by a woman.

2023 Minority-Owned Small Business statistics

Women of color own 50% of all women-owned businesses.

Veterans own 9.1% of US firms.

Immigrants make up 25% of small business owners.

Immigrants have founded 55% of the unicorn startups in the US.

There are now more than 4 million minority-owned businesses in the U.S.

There are 8.7 million minority-owned business employees.

In 2016, the industries with the largest number of workers employed by minority-owned small businesses were accommodation and food services with 2.4 million employees, health care and social assistance with 1.4 million employees, and retail trade with 863,000 employees

20% of all U.S. businesses are owned by people of color.

The top reasons that POC entrepreneurs started their small business were readiness to be their own boss (28%), pursue their own passion (19%), and dissatisfaction with corporate America (15%), the same top reasons seen within responses from white entrepreneurs.

The U.S. census bureau released new estimates showing 1.1 million employer firms were owned by women and 1.0 million by minorities.

On average, a minority-owned firm would have $1.2 million in annual sales and employed 8 workers.

African American/Black women grew even faster at 50%. Native Hawaiian/Pacific Islander (41%), Latina/Hispanic (40%), Asian American (37%), and Native American/Alaska Native (26%) businesses grew more slowly than for women of color in general but faster than overall women-owned businesses and all businesses.

There are 322K Hispanic-owned businesses in the United States.

There are 555K Asian-owned businesses in the United States.

There are 351K Veteran-owned businesses in the United States.

Women-owned small businesses have been showing up at a faster rate than new businesses in general, at 21% per year.

In 2017, 16% of the nearly $83 billion invested in U.S. venture-backed startups went to companies with at least one female founder, and just 2.5% went to startups with all-female founders.

The number of women-owned businesses increased by 21%, while all businesses increased by only 9%.

While the number of women-owned businesses grew 21% from 2014 to 2019, firms owned by women of color grew at double that rate (43%).

People of color represent about 40% of the population, but only 20% of the nation’s 5.6 million business owners with employees.

Women are 51% of the U.S. population but only 33% of business owners with employees.

The ratio of men entrepreneurs to women entrepreneurs in 2018 was 10:7.

In 2019, women in America started an average of 1,817 new businesses per day.

In 2019, the leading obstacle faced by women in business in the United States was balancing business and family life. That year, 54% of female business owners said that this was the biggest obstacle they faced that their male counterparts do not.

19% of small businesses are owned by minorities.

Minorities own more than 6  million small businesses. This is an increase from 2015 when only 15% of business owners were part of any minority ethnic group. Small business ownership statistics show that African American business owners have jumped by a significant 400% between 2017 and 2018.

There are 8 million minority-owned businesses.

To say that small businesses are becoming diverse would be an understatement. There has been a lot of focus placed on ensuring that minorities have access to support and means to start a small business, resulting in about 8 million minority-owned businesses in the U.S.

In 2016, millennials became the largest workforce generation in the States.

Anyone who is considering starting a small business should bear in mind the work ethics of millennials. People born between 1981 and 1996 constitute the largest segment of the US labor force; more than one-third of American workers (35%) belong to this generation. In 2019, there were 72.1 million millennial workers in the US.

100% of millennial owners of small businesses that generate between $1 million and $10 million in revenue believe that AI and machine learning will impact their industry in the next five years.

Capital One Small Business Growth Index findings suggest that millennial business owners are more open to innovation, more optimistic when it comes to business success, and more likely to offer benefits to their employees.

Millennials will make up 75% of the global workforce by 2025.

Multiple studies show that millennials are willing to work for small and medium enterprises. SMEs provide opportunities that are very appealing for this generation, such as taking more responsibilities earlier or the ability to work on their own terms. According to a survey by Bentley University, 77% of millennials say that flexible work hours make them more productive.

For the first time since 2016, the number of millennials who want to stay with their employer became higher than the number of those that want to quit.

The Deloitte 2020 Millennial Survey reveals that for the first time since the company began measuring millennial job loyalty, the number of those who will stick with their employer long-term (35%) is higher than the number of those who want to quit their job in the next two years (31%).

More than 62% of millennials believe that virtual meetings (video calls and online chats) encroach on face-to-face meetings.

Millennials actually prefer face-to-face meetings over virtual communication at the workplace. According to one study, 41% of millennials feel overwhelmed with information overload, versus 31% of older generations.

Millennials already run 16% of small businesses in the US.

Members of this generation are starting to run a business much earlier than their parents did (at the age of 27 versus 35 for baby boomers). Generally speaking, they are entrepreneurial by nature and financially realistic. Millennials value small businesses a lot — according to Gallup’s Confidence in Institutions poll, 33% trust small businesses “a great deal” and 37% trust them “quite a lot.”

There are 3.2 million immigrant-owned businesses in the US right now.

Small business data gathered by Inc.com show that immigrant-owned businesses pay approximately $126 billion in wages on a yearly basis. One in 10 Americans working for private firms are employed by immigrant-owned small businesses. Additionally, a 2019 report found that 45% of Fortune 500 companies have been founded by immigrants or their children.

An estimated 8 million US small businesses are owned by people from a minority background.

Of these, 3.4% are owned by Native Americans, 27.75% are Asian-owned, 32.5% are owned by African Americans, and 41.25% are owned by citizens of Hispanic origin.

The majority of American companies with fewer than 500 employees are located in the South, not on the West Coast.

The NSBA end-of-year report for 2017 identified that 27% of small businesses were located in the South, followed by 22% of firms located in the Mid-Atlantic. Small businesses located in the Pacific region accounted for 15% of the overall number. Findings from 2021 indicate that the situation is largely unchanged.

71% of business owners are white.

White people mostly dominate small companies, brands, and firms in the US. The difference is so vast that the second ethnic group that comes close is the Asians/Pacific Islanders at 11%. Black/African American and Hispanic/Latino followed at 7% and 6%, respectively.

Millennials are 188% more likely to create a business as a side hustle.

Compared to the baby boomers, millennials’ small businesses are usually a side job as an extra source of income. This is thanks to advanced technology that makes it easy to run your business activities from home. New business statistics revealed that millennials are 48% more likely to have created their business from an idea they are passionate about when compared to baby boomers.

There are more than 4 million minority-owned businesses in the U.S that do close to $700 billion in annual sales.

There are over 3 million immigrant-owned businesses in the US right now.

There are over 1.9 million Latina-owned businesses in the United States.

Women of color own half of all women-owned businesses.

Minorities own 45% of small businesses and constitute 12 million jobs in the United States.

Veteran-owned firms make up 9.1% of America’s businesses.

People who immigrated to the U.S. make up 25% of small businesses nationwide.

Immigrants have founded 55% of the Unicorn startups in America.

More than 2 out of every 3 African American small business owners are the only employee in their own firm.

African-American small businesses were the most impacted by COVID-19 experiencing a 41% drop in activity.

Small Business Employment statistics 2023

Small business owners personally take on an average of 4.2 roles, including that of leader, communicator, marketer, and financial manager.

70% of small business owners reported that they work more than 40 hours a week

19% of Small business owners are working over 60 hours a week.

41% of small business owners have only two to five employees.

There has been a 15% increase in challenges related to recruiting and retaining employees, according to small business owners.

More than a third of small businesses currently outsource a business process.

37% of small enterprises outsource mainly to improve efficiency.

many small business owners operate on tight budgets and do not outsource that much–only 10% outsource bookkeeping, 17% outsource accounting to a CPA, and 15% outsource payroll.

Small businesses in the US employ 47.3% of the American workforce.

Job openings at firms with less than 500 employees were responsible for 40% of new jobs from 1992 through 2012.

In 2017, 42% of small businesses had a payroll of less than $100,000.

46% of small businesses have 1–5 full-time or part-time employees.

75.3% of employers in the private sector were microbusinesses in 2013.

An amazing 82% of small businesses provide on-the-job training for their employees.

Only 5% of small business firms hire union workers.

US small businesses statistics show that 42% employ freelancers.

Business statistics show that 60% of small business owners require job applicants to pass a background check.

37% of SMBs offer higher salaries to win employees over.

Small businesses face challenges when it comes to finances. However, small business employment statistics show that 37% of surveyed business owners offer higher salaries to make their businesses more appealing to candidates. The lucrative salaries along with other benefits like considerate vacation policies and providing opportunities to advance give SMBs a clear advantage over big companies.

Small businesses account for 44% of U.S. economic activity.

mall businesses are the lifeblood of the U.S. economy: they create two-thirds of net new jobs and drive U.S. innovation and competitiveness. A new report shows that they account for 44 percent of U.S. economic activity. This is a significant contribution, however this overall share has declined gradually.

The 2019 small business profiles showed that small businesses added 1.8 million net new jobs in the United States.

The 2019 Small Business Profiles show that small businesses added 1.8 million net new jobs in the United States during the latest year studied. The United States has 30.7 million small businesses, and they employ 47.3 percent of the private workforce. The top three industries for U.S. small business employment are (1) health care and social assistance, (2) accommodation and food services, and (3) retail trade.

Nearly half of the private-sector workforce work for small businesses.

What percentage of employees work for small businesses?

Small business start-ups account for 46.8% of American private-sector employers. This means that 61.2 million people depend on small businesses for their earnings.

78% of small business owners are optimistic about the future of their companies.

There are thousands of small businesses opening every single day. And the economic backdrop isn’t stellar. Despite this, 78% of small business owners are confident about their future in the market. Around 19% expressed doubt regarding their companies’ success, while 4% said they didn’t expect to survive.

Home-based businesses make up for 50% of all American entities.

Just a few decades ago, working from home seemed like something incredibly far-fetched.

However, technology has advanced since then. The remote business model was further accelerated by the Covid-19 pandemic.

Operating a business from home is a manageable, great option for many business owners. Home-based business statistics have found that 50% of all entities are home-run. This includes 60% of companies that don’t have paid employees yet.

The most common business type for home-based operations is a sole proprietorship.

Almost 40% of SMBs give higher salaries to get employees.

Small businesses don’t have a lot of resources when it comes to finances. Nevertheless, SMB stats show that 37% of them offer higher salaries to appeal to more candidates. Stats on small businesses show that lucrative salaries, alongside other benefits, such as vacation opportunities and policies, are seen as an advantage over working for bigger companies.

24,813,048 small businesses in the United States are non-employer.

Just because a business is small doesn’t mean it has to employ anyone. A lot of people start small businesses to legitimize their careers and practices. The United States government calls these businesses non-employer businesses. Furthermore, there are about 24,813,048 non-employer businesses in the U.S. today.

69% of U.S. startups are started at the entrepreneur’s home.

We’ve all heard the touching tale of how most of the world’s big businesses started. Harley Davidson, Amazon, and even A.M.G. all started in garages, and that seems to be a trend across many small businesses. About 69% of all small businesses in the U.S. start their operations from home.

The employment share of the self-employed and micro-enterprises is highest in South Asia, Africa, and the Middle East.

A comparison of the different regions indicates that the share of self-employment in total employment is highest in South Asia (67%), followed by sub-Saharan Africa (50%) and the Middle East and North Africa (44%).

Most micro-businesses employ nine to ten people.

When you think of micro-businesses, you’ll need to take the small business label and downscale it even further. However, there are many micro-businesses, most of which employ nine to ten people.

The biggest employers in the small business world are professional, scientific, and technical services, with 796,737 employees.

The biggest small businesses based on industry and firm size were professional, scientific, and technical services, with the most employees counted at 796,737.

52% of small business owners say it’s hard to find qualified individuals.

Finding qualified individuals to work for your business has always been challenging, but the problem has grown substantially in recent years. About 52% of small business owners claim that it’s far more difficult to find people with appropriate credentials and qualifications to work at their business.

37% of small businesses offer higher salaries.

Over a third of small to medium-sized businesses tend to maintain employees by offering competitive salaries.

Firms with fewer than 100 employees have the biggest share of small business employment.

Around 18% of all employees in the USA work for companies with fewer than 20 employees.

Small firms created 9.3 million new private jobs between 2005 and 2019, which accounted for 64% of the total jobs created in the country.

Small enterprises continue to have a significant positive impact on the employment rate in the US. During 2017 – which is when the most recent data was published – small businesses created 47.1% of all jobs in that year.

According to the US Census Bureau, 62% of businesses in the States have five employees or fewer.

Official US small business statistics show that nearly two-thirds of businesses in America had five or fewer employees in 2014.

More than 1.9 million new jobs are currently generated annually by small companies in the United States.

For example, in Q3 2016, about 240,000 startups were founded, generating more than 870,000 new jobs. However, during the same period, about 215,000 startups were closed, which resulted in almost 750,000 jobs lost.

In 2012, 69% of new small businesses were founded at home.

Around 60% of established small businesses older than 3.5 years continue to operate from home.

The top three small business trends in 2019 were remote employment, outsourcing, and the adoption of IT tools.

Unemployment in the USA has hit a historical low, so employers are having a difficult time finding quality talent. Many businesses will now have to opt for mobile workers, as there’s an increasing demand to work remotely, especially with the pandemic.

Another solution is to hire freelancers instead of full-time employees. Powerful online tools (such as cloud apps) that allow work to be done remotely also support collaboration on a truly global scale.

The most popular motivation for someone to start a small business is determination to be their own boss.

In a survey by Guidant Financial, 26% of responders said they wanted to be their own boss, while 23% said they wanted to pursue their own passion.

And there you have it! We hope this list of small business statistics helps you better understand the challenges and potential benefits of starting up your own business. If you have the chance, we’d encourage you to choose small companies over large corporations when purchasing products and services. By doing business with small local firms, you’re directly helping the economy, while also supporting innovators like yourself.

Small businesses create 1.5 million jobs every year.

Small businesses in the United States are a vital part of the country’s economy. Statistics of US businesses revealed that small businesses accounted for 64% of all new jobs created between 1993 and 2011. Additionally, small businesses make up about 95% of all US companies.

52% of business owners say it’s hard to find qualified workers.

Small business problems statistics from 2019, show that more than half of the SMBs in the United States struggled to find qualified employees. Also, for businesses with more than 50 employees, 63% of its owners stated that it was harder to find qualified individuals. 

Around 50% of small businesses start at home.

SBA’s research found that around 50% of all small businesses are launched from home, with more home-based companies emerging all time. More specifically, around 60.1% of all firms not using paid staff are based at home, as are around 23.3% of employer firms. The most likely industry where a business will be home based is information (70%).

50% of all small businesses are home-based.

There are nearly 15 million home-based businesses in the United States. Not to mention that the majority of startups began at home. That’s because working from home greatly reduces the overhead costs associated with an office space. This style of working has become increasingly popular throughout the pandemic, and it’s likely to stay that way for years to come.

70% of customers will pay more for excellent customer service.

Providing great service helps your customers see the value in choosing your business over your competitors’. It also ensures they have a positive experience, increasing the likelihood of a referral. Keep your customers happy and they’ll keep coming back again and again!

Over 37% of small businesses have outsourced their business processes.

Today a lot of small businesses have outsourced at least one part of their business process. Experts say that about 52% of these small businesses will still outsource jobs this year. Furthermore, small businesses are expected to increase their software budget from 6.0% to 9.1%.

Outsourcing in small businesses declined to 35% in three years.

Compared to 59% of small businesses outsourcing in 2016, only 35% were still outsourcing in 2020. This dramatic shift was mainly a result of an increase in quality-oriented outsourcing. Further stats show that 18% of small businesses will continue to outsource to obtain talent and skills they can’t find locally.

Franchised small businesses employ 8 million people.

Franchises form a significant part of the economy that helps curb the unemployment rate in the US. Statistics show that franchised small businesses represent 40% of the total retail jobs in the United States.

The demand for self-employed software developers is projected to increase by 21%.

Small business growth statistics show that the continuous need for software developers would spike to 21% by 2028. There would be a corresponding increase in their wages. In 2018, the average pay for software developers and engineers was $105,540.

About 69% of US entrepreneurs start their business at home.

Thanks to advancements in technology and other factors, US entrepreneurs kick off their dream business from their couch. Statistics show that at least 50% of small businesses are operated from home, including 60.1% of firms and companies without employees.

Non-employer businesses account for 60% of home-based businesses.

Non-employer businesses are simply businesses with no paid employees. Statistics show that in 2016, non-employer businesses contributed to 76.2% of businesses in the US. These companies do not have a yearly receipt of more than $1,000 or $1 in the case of construction companies. Information industries are 70% more likely to be home-based, while construction companies have a 68.2% chance.

Small Business Marketing statistics 2023

(51%) say that they have increased their interactions with their clients over the Internet.

47% of small businesses spend less than $10,000 on digital marketing.

Many small businesses don’t have huge budgets for marketing, so most of them spend their money safely and smartly. About 47% of small businesses spend less than $10,000 per year which is virtually nothing compared to the budget of an average large-scale marketing campaign.

10% of small businesses engage in AR and VR technology for digital marketing

10% of SMBs do not invest in any kind of marketing.

17% of small businesses are investing in search engine optimization.

20% of SMBs do not use digital marketing.

29% plan to begin using a website for the first time in 2020

29% of SMBs spend between $750 to $2499 on digital advertising monthly.

3% of small business startups invest in social media marketing.

Digital marketing channels are more popular with small businesses due to their limited budgets. They plan to continue investing in the future too.

Small businesses need to realize that taking a holistic marketing approach is important. Investing in different mediums can be more helpful for small businesses since it can help you get your brand image out there.

20% of SMBs do not use digital marketing.

29% plan to begin using a website for the first time in 2020

29% of SMBs spend between $750 to $2499 on digital advertising monthly.

36% of personal businesses that use online tools are now making all their sales online.

36% of small businesses don’t have a website

36% of SMBs spend less than $10,000 on digital marketing annually.

37% of consumers use the Internet to find a store at least once per month.

37% of small businesses plan to increase their digital marketing spending in the next 12 months.

38% of customers will stop engaging with a site if it doesn’t have an appealing layout.

38.5% of website visitors form their opinion of a business based on initial user experience.

39% of small businesses use email marketing

41% of local businesses depend on social media to drive revenue.

70-80% of people research a small business before visiting or making a purchase from them.

Having a website is of utmost importance for any business, regardless of its size. A website comes with a set of benefits like increased visibility, adds credibility, and ensures a better customer experience. With the vast majority of customers going online to check the business before making a purchase, you simply cannot afford to ignore the need for an optimized website. Plus, with the sheer number of website builders and small business SEO experts that can help you launch your site and have it optimized for search engines, there’s no reason to postpone this important task.

46% of all searches on Google have local intent.

Stats show that 64% of small businesses have websites.

Despite the fact that having a website benefits small businesses, small business website statistics show that one-third of them still don’t have a website. They point out that cost, irrelevance to industry, and social media are the main reasons for not having a website.

47% of small business owners run marketing entirely on their own.

47% of small businesses experienced at least one cyberattack in 2018.

Entrepreneurs operating online should also be aware of these small business cybersecurity statistics: As many as 43% of cyberattacks target small businesses. Data from 2019 indicates that cyberattacks are set to cost businesses around the world $5.2 trillion between 2019 and 2024.

47% of small business owners handle marketing efforts on their own.

47% of small businesses spend less than $10,000 on digital marketing.

92% of small business owners think that having a website is the most effective digital marketing strategy.

89% of small business owners believe that using SEO also helps. The combination of these two tactics is indeed the most important element of a successful digital marketing strategy. Build a website that uses the right keywords to target a relevant audience, produce high-quality content, and provide a dynamic user experience and you’ll see the number of leads increase drastically.

73% of small businesses invest in social media marketing.

Small businesses leverage digital marketing channels despite their limited budgets. Almost three in four small businesses have already invested in social media. Other top digital marketing channels include a website (73%), email marketing (57%), SEO (49%), video (34%), and content marketing (32%).

50% of people say they’d purchase something from a website’s chatbot using conversational marketing.

50% of SMBs spend less than $300 per month on online marketing.

54% of consumers want to see more videos about products to guide their purchasing decisions.

61% of marketers say their biggest challenges are generating traffic and leads

61% of small businesses invest in social media marketing

62% of SMBs dedicate 4% or more of their revenue to marketing.

64% of small businesses are using email marketing, but one-in-five campaigns

72% of small businesses have a website

Small business statistics for 2021 show that one-third of small businesses don’t have a website yet. The main reasons include irrelevance to industry, cost, and social media. Social media has made it easy to market your services and goods at a low cost. Almost half of the small businesses without a website (44%) plan to create one.

To give your website more credibility, we suggest posting a privacy policy statement. Have a look at our selection of the best free and paid privacy policy generators.

69% of the small businesses that have websites have annual sales of $1,000,000 – $2,490,000.

70% of SMBs plan to increase their digital marketing spending.

70-80% of consumers research small businesses before making a purchase or visiting them.

It is important for any business to have a website, even if they are small.

Websites can have a huge set of benefits – they lend credibility, visibility, and ensure a better customer experience. Most consumers prefer to go online and check the business out before they make a purchase. Small businesses need to make sure that they have a website in place so that customers can check it at will.

71% of marketers believe video content brings better conversion rates.

71% of small business owners do their own digital marketing instead of leaving it to experts.

74% of consumers rely on social media to guide purchasing decisions.

75% of people have judged a company’s credibility based on its website design

75% of small companies use paid advertising, including long-term social media marketing campaigns and boosted posts.

80% of businesses use at least one online platform for marketing and advertising.

80% of small businesses don’t invest in content marketing.

According to expert opinions, 80% of small businesses don’t invest in content marketing, which could be a poor choice in the long run.

81% of shoppers research online before purchasing.

89% of small business owners believe that using SEO helps drive business

90 million small businesses use Facebook pages to promote their brand, products, or services.

75% of these firms use paid advertising, including boosted posts and longer-term social media marketing campaigns.

91% of customers have visited a store because of an online experience.

92% of all small business owners think that websites are the most effective digital marketing strategy.

96% of small businesses say they use social media in their marketing strategy.

A considerable 76% of buyers are willing to share their personal information in exchange for a white paper.

Almost 40% of users will disengage from a slow website.

Almost two-thirds of small companies rely on websites to engage potential customers.

According to Clutch, 64% of small businesses had a website at the beginning of 2018.

As of 2023, 61% of U.S. website traffic comes from mobile devices.

By the year 2023, 69% of search ad growth will be from mobile.

Consumers have 2X more interactions with brands on mobile than they do on desktop.

Despite the stats listed above, 80% of small businesses still do not invest in content marketing.

Marketing experts agree that such firms are missing a key opportunity to increase sales, customer loyalty, and brand awareness.

Even in 2014, 94% of small companies had used smartphones to conduct their business. Today, running a business is unimaginable without smart devices.

The majority of businesses estimate they save up to $6,000 per year by using mobile apps.

Every small business should consider these marketing statistics: 88% of online consumers are less likely to return to a website after a poor experience.

The majority of Americans prefer to shop online. Most people who don’t like a particular eCommerce website will shop somewhere else next time.

Firms that have a blog on their website generate 126% faster lead growth than those that don’t.

Small business growth statistics provided by HubSpot also suggest that a neat landing page, a presence on social media, and strong keywords contribute to generating more leads.

However, 51% of small business owners in 2016 were still reluctant to use new technologies because of the time it takes to implement them. In 2017, this figure fell to 30%.

According to the 2016 State of Small Business Report by UPS CONNECT, 64% of small businesses use social media for business advice, 62% consult industry peers, 52% browse the internet, and 44% use business-related media. According to a study by AT&T, 75% of small business owners were eager to adopt new technologies in 2017.

In the U.S., the desktop has a conversion rate of 3.99%, compared to only 1.22% on mobile.

Nearly 50% of small businesses spend $10,000 or less on digital marketing each year

Nearly 75% of small businesses do not use analytics, tracking, or coupon codes. Shockingly, 18% of small businesses do not track anything.

Of the small businesses that do have a website, 79% say their website is mobile friendly.

Only 58% of Midwestern small businesses have a website compared to the Northeast (72%), the South (73%), and the West (77%).

Organizations describing themselves as “design-driven” are 69% more likely than their peers to have exceeded their 2020 business goals by a significant margin.

Over 80% of marketers consider increasing overall conversion a dominant priority for their website optimization programs.

Small businesses spend $534 a month on digital marketing.

Startups and small businesses have limited resources to spend on their marketing resources. Statistics for business show that spending more than $6,000 on digital marketing yearly is common since they need to use their marketing resources efficiently.

Moreover, 93% of small business owners plan to keep or increase their marketing spending over the next 12 months.

The average click-through rate of a call to action is 4.23%.

Users spend 88% more time browsing web pages with video content.

VR and AR are the least common small business marketing strategies.

VR and AR actually help bring consumers closer to the products since they are simulation technologies and give customers an accurate impression of the goods. But do they boost a small business growth rate?

Despite the benefits that VR and AR bring to the table, only 10% of small businesses believe so and use this strategy.

Websites are the most popular digital marketing channel for small businesses at 54%.

Digital marketing dominates a considerable portion of the modern marketing world, and that’s why most small companies put a lot of effort and resources into getting a slice of the pie for themselves. Websites lead the way as the most popular digital marketing channel with 54%. Social media follows close behind at 51%, and email marketing campaigns hold a solid 36%.

While 78% of marketers reported that website optimization results at least somewhat drove their broader marketing campaigns, only 47% of marketers indicated that their web design or product development changed due to optimization lessons.

Small Business & Social Media Stats for 2023

Small Business Trends & Predictions for 2023

The Gigs Economy

In 2020, the total number of freelancers stands at approximately 7million (Matthews, 2021). Two years prior, the total was 57.3 million workers (Gig Economy Data, 2018). Freelancers make up 36% of the overall workers in the country since 2014. They participate in temporary employment relationships somewhat sporadically to either support their income or to get away from the “9-5” life. They get to feel that they are their own boss. Also, they can work with passion projects. Moreover, technology has enabled gig-work to be the new normal for many people.

Small Business FAQ.

How many small businesses are there in the UK?

More than 99.9% of all UK businesses are small to medium-sized, meaning they have 250 or fewer employees. In total, the most up-to-date government figures show a total of 5.58 million SMEs currently active in the UK.

The UK is also home to 7,655 large businesses (classed as those that have more than 250 employees).

Business type	number of employees	Amount	% of all businesses	Turnover (millions)
Micro	1-9	5,337,075	95.5%	636,893
Small	10-49	210,550	3.9%	649,883
Medium	50-249	35,620	0.6%	720,540
Large	250+	7,655	0.1%	2,139,334

As shown in the above chart, SMEs account for an estimated 61% of employment and 52% of turnover in the UK private sector.

Currently, 4,174,920 UK small businesses have zero employees. This is likely due to the 46% of people in the UK who have started a side hustle.

How does the number of UK SMEs compare to previous years?

In 2020, there were 6 million SMEs in the UK – 6.6% more than there are at the moment.

When records began in 2000, the overall number of private sector businesses stood at 3.5 million.

Overall, the UK has still enjoyed a 60% increase in SMEs over the past 22 years

What is the Number Of Small Businesses & Small Business Employees By State?

STATE	NUMBER OF SMALL BUSINESSES	NUMBER OF SMALL BUSINESS EMPLOYEES
Arizona	571,495	1,039,228
Tennessee	603,310	1,096,245
Colorado	630,113	1,117,202
Maryland	594,124	1,143,191
Missouri	532,277	1,168,725
Indiana	512,348	1,222,372
Minnesota	520,110	1,254,958
Wisconsin	452,594	1,258,929
Washington	608,956	1,379,558
Massachusetts	669,224	1,490,416
Virginia	745,886	1,535,136
Georgia	1,051,071	1,637,892
North Carolina	913,398	1,672,050
New Jersey	884,049	1,810,107
Michigan	873,722	1,868,885
Ohio	949,479	2,192,920
Illinois	1,233,572	2,485,857
Pennsylvania	1,058,033	2,497,524
Florida	2,494,279	3,397,931
New York	2,168,799	4,106,086
Texas	2,679,964	4,706,864
California	4,203,260	7,129,204
Wyoming	66,653	131,499
Alaska	73,354	141,147
Vermont	77,614	161,080
Delaware	82,121	187,556
North Dakota	73,142	198,964
South Dakota	86,550	210,534
Rhode Island	101,516	229,974
Montana	120,246	245,411
District of Columbia	76,083	247,461
Hawaii	132,640	275,115
West Virginia	113,410	275,145
Maine	147,270	289,156
New Hampshire	134,760	295,895
Idaho	162,905	315,753
New Mexico	154,804	334,945
Nebraska	176,358	412,291
Mississippi	257,404	440,399
Nevada	270,079	487,407
Arkansas	249,907	490,497
Utah	287,803	572,888
Kansas	254,297	604,215
Iowa	270,484	651,635
Kentucky	351,260	702,054
Oklahoma	350,718	712,582
Connecticut	346,950	750,457
Alabama	396,432	789,425
South Carolina	418,031	794,711
Oregon	377,860	852,983
Louisiana	447,440	902,758

Summary – Small Business Statistics

Small businesses are the backbone of the global economy and an important part of what makes the world so versatile. As the small business statistics above show, there’s still plenty of opportunities for entrepreneurs to get involved with the world of small business sales and carve their own place in the industry. As we continue into the future, small businesses will only continue to grow.

Now for the next steps. With our Blogging Guide, you can get a little more information about blogging and how to start a blog.