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.
key Small Business Statistics 2023 – MY Choice
- Competition from bigger companies is the primary concern among small business owners.
- 50% of small businesses will survive 5+ years and 33% – 10+ years.
- 27% of people opened a small business in order to be their own boss.
- More than 550,000 new businesses are founded each month.
- Nearly 60.6 million people are employed by small businesses.
- 70% of small businesses are operated and owned by a single person.
- 64% of small businesses are started with less than $10,000.
- Small businesses generate 53% of all US sales.
- There are 31.7 million small businesses in the US – they make up 99% of all US businesses.
- Small companies create 1.5 million jobs annually.
- It takes an average of 4 days to launch a small business in the U.S.
- Small Businesses Generate 44 Percent of U.S. Economic Activity.
- 23 million SMEs represent 99% of all European businesses.
- Small and medium enterprises (SMEs) represent more than 90% of the business population.
- There are 31.7 billion small businesses in the United States.
- The coronavirus pandemic has significantly impacted small businesses in New York.
- 57% of small business owners rely on personal savings to start off.
- 20% of small businesses fail in their first year.
- 29% of small business owners said money-making was the main driver behind starting a small business.
General Small Business Statistics
|Small Biz Data||Statistics|
|Percentage of businesses represented by SMEs||More than 90%|
|Percentage of global employment accounted for by SMEs||Up to 70%|
|Percentage of GDP in developed countries accounted for by SMEs||Over half|
|Estimated number of micro and small and medium enterprises in emerging markets around the world||Up to 445 million|
|Percentage of businesses in the European Union classified as SMEs||99%|
|Percentage of exporters in the US that are SMEs||97.5%|
|Total number of small businesses in the US as of 2020||31.7 million|
|Percentage of total businesses in the US represented by small businesses||99.9%|
|Number of workers employed by small businesses in the US||60.6 million|
|Percentage of businesses in the US classified as micro-businesses||89%|
|Percentage of small businesses in the US owned by women||27%|
|Percentage of small businesses in the US owned by men||73%|
|Percentage of small business owners in the US who are Gen Xers||44%|
|Percentage of small business owners in the US who are Baby Boomers||41%|
|Percentage of small business owners in the US who are Millennials||12%|
|Percentage of SME owners in the US with associate degrees||31%|
|Percentage of SME owners in the US who are high school graduates||30%|
|Percentage of SME owners in the US with doctorate degrees||4%|
|Percentage of small business owners in the US with a bachelor’s degree or higher||53.78%|
|Median revenue increase for US small businesses in the first half of 2019 compared to the same period in 2018||15.7%|
|Industry with the biggest revenue growth rate for SMEs in 2019||Construction sector (23.3%)|
1. Small businesses account for 90% of all global companies
Listen up, folks! Did you know that small and medium enterprises are like the unsung heroes of our economy? They make up a whopping 90% of businesses and provide 50% of jobs worldwide, according to the World Bank. These little guys may be small, but they sure are mighty!
But here’s the kicker – they often have a hard time getting loans. Yup, you heard it right. These small businesses are more likely to rely on their own funds, cash from family and friends, and personal savings to keep their businesses afloat. The World Bank estimates that a whopping 65 million businesses will have unmet financing needs each year.
So next time you pass by a small business, give them a pat on the back, and maybe even buy something from them. They’re doing a lot more than you might think!
2. Total U.S. employment is projected to grow from 153.5 million to 165.4 million from 2020 to 2030
According to the big brains of the US Bureau of Labor Statistics, employment is gonna grow from 153.5 million to 165.4 million in the next 10 years. That’s right, we’re talking about 11.9 million new jobs, or a whopping 7.7 percent increase!
But wait, hold your horses. We gotta take out the projected increase of 9.3 million jobs caused by the COVID-19 recovery. So, without that, we’re looking at a measly 1.7 percent increase. But hey, a job’s a job, am I right? Let’s hope we all find something we love doing and get paid for it.
3. 39% of small business owners work 60 hours a week.
Being your own boss might seem like a glamorous gig, but let me tell you – it’s not all sunshine and rainbows.
Sure, you get to call the shots and set your own hours, but small business owners work their tails off. And I’m not just talking about putting in extra hours. They’re under more pressure than a cat in a room full of rocking chairs.
These folks are putting in work day and night – and I mean that quite literally. Over 80% of them are burning the midnight oil and almost 90% are hustling on weekends. And don’t even get me started on how many hours they’re putting in each week. 70% are working at least 40 hours and 39% are pushing past the 60-hour mark.
So the next time you think about starting your own business, just remember – it’s not for the faint of heart. But for those who are willing to put in the work, the rewards can be sweet.
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.
Ah, so you’re thinking about becoming your own boss, eh? Well, let me tell you, there’s nothing quite like the feeling of being in charge. The freedom, satisfaction, and flexibility it offers are second to none.
Why, you ask? Well, when you’re the boss, you get to call the shots. You can make your own schedule, without having to answer to anyone else. And let me tell you, there’s nothing quite as satisfying as making your own decisions.
Sure, starting your own business can be risky. But with that risk comes reward, my friend. New entrepreneurs are attracted to the idea that they can build something big from scratch. Something bigger than what they could achieve as mere salaried employees.
So if you’re ready to take the leap and become your own boss, don’t let fear hold you back. The freedom, satisfaction, and flexibility are waiting for you on the other side!
5. 5.5 million businesses in the UK are small companies in 2023
Table 1: Small Business Job Creation
|Small businesses jobs added in the last 25 years||12.9 million|
|Jobs added to economy by small businesses in the last 25 years||About 2/3 of all jobs|
|Professional and business services industry new jobs in last year||Over 1.1 million|
|Employment increase in the last year||5.8 million (240,000 above Feb 2020 level)|
Table 2: Industries and Job Growth
|Industry with most job openings||Education and health services industry|
|Industry with highest projected job growth||Home health and personal care industry|
|Industry with biggest loss of jobs in 2022||Leisure and hospitality industry|
|States with highest unemployment rates||D.C. and New York|
|States with lowest unemployment rates||Minnesota|
|Largely rural states with least affected unemployment rates||Arkansas, Nebraska and Oklahoma|
|Jobs lost during pandemic and recovered in 2023||Only 14% of jobs will be recovered|
|Jobs lost during pandemic and recovered by 2031||Only 87% of jobs will be recovered by 2031|
|Fastest growing industries||Healthcare and social assistance industry|
|Industry that will add most jobs||Individual and family services industry, computer systems and design (2nd)|
It looks like the UK’s small business population is taking a bit of a dip! There are still close to 6 million small companies out there, but that’s down about 6.6% from last year.
But don’t you worry, folks, because these small businesses are still holding down the fort! In fact, a whopping 99.9% of all UK businesses are small and mighty SMEs.
And get this – almost 20% of those little guys are in construction. Talk about building up the economy!
And while we may only have 1% of SMEs in the mining sector, there are still plenty of other areas where these small businesses are thriving. Professional, scientific, and technical activities make up 15%, while the wholesale and retail trade and repair sector account for 9% of the SMBs.
So let’s give a round of applause for our small business heroes, keeping the UK economy chugging along!
Small Business Failure Stats
|Small Business Statistics||Data|
|Failure rate due to cash flow problems||82%|
|New businesses started per month||543,000|
|Failure rate in the first year of running a small business||20%|
|Failure rate after two years||33.3%|
|Failure rate after five years||50%|
|Second most common reason for small business failure||No market for products or services|
6. 69% of startup businesses begin at home.
Well folks, it looks like there’s a new trend in town and it’s called working from home. According to a recent study, over 50% of entrepreneurs in the U.S. are continuing to run their businesses from the comfort of their own homes long after they’ve been established.
That’s right, no more pesky commutes or crowded office spaces for these savvy business owners! The study even looked at Total Entrepreneurial Activity (TEA) across different industries and found that this trend is not going anywhere anytime soon.
So, if you’re looking to start your own business, why not join the growing number of entrepreneurs who are taking advantage of the benefits of working from home?
7. 90% of Small businesses don’t offer childcare support of any kind.
Now, we all know that parenting can be a bit of a handful, and let’s face it, it’s hard enough to keep a little one entertained without having to worry about work too.
But fear not! Some companies have got your back!
That’s right, some small businesses have been offering new child-care benefits like backup child care and even stipends for college counseling services. Now, that’s what I call a real parenting win-win situation!
So, if you’re a small business owner, it’s time to step up your game and show your employees that you care about their kids too!
8. 90% of startups fail. An average of 123,000 out of 137,000 new businesses fail daily
Well, well, well, looks like you’re one of the lucky ones! You’ve managed to beat the odds and survive in the startup world where 90% of new businesses bite the dust.
But hey, it’s not all about luck, right? I mean, let’s take a look at the big players like Google and Facebook.
Sure, they had their fair share of luck, but they also had a product that met a need, and they didn’t ignore anything (not even their morning coffee).
They grew like a weed and bounced back from the hard-knock startup life.
So, congratulations on being one of the lucky ones, and keep up the hard work!
9. 98.6% of American Manufacturers are Small Businesses in 2023
he numbers are in and it looks like the little guys are making a big impact in the manufacturing industry!
That’s right, small businesses with just over 20 employees are taking up a whopping 75.3% of the industry in the US. And what are they making, you ask?
Well, it seems like they’re getting pretty fashionable, with apparel taking the lead at 22.9% of products created.
But that’s not all, they’re also bringing the furniture game strong at 18.4% and fabricated metal products at 16.4%.
Looks like these small businesses are not so small after all!
10. 99.8% of Australian businesses are small-sized companies.
Did you know that small businesses are the real MVPs of the Australian economy? Yep, you heard it right.
Almost all businesses in Australia are small or medium-sized. And let me tell you, the numbers don’t lie!
Recent small business statistics show that a whopping 62% of businesses have no employees and 98% employ less than 20 people.
That’s a lot of small fries making a big impact on the land down under!
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.
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 )
Did you know that when it comes to small businesses in the United States, California is totally killing it
Yeah, they’ve got a whopping 4,203,260 small businesses! But don’t count Texas out of the game, they come in second place with 2,679,964 small businesses.
Florida takes third with 2,494,279, while New York rounds out the top four with 2,168,799 small businesses.
Looks like the West Coast is definitely the Best Coast when it comes to small businesses, am I right?
13. In a 2023 survey of over 500 founders, small business owner statistics showed that 75% of startups offer work-from-home benefits.
As we’ve long known, remote work has a host of advantages for workers like:
- Better Work-Life Balance
- Less Commute Stress
- Location Independence
- Improved Inclusivity
14. It takes 4.2 days to start a business in the US.
Want to start a business? Well, guess what? In some countries, it takes less time than it does to binge-watch a season of your favorite show! Can you believe it?
In the US, you can have your business up and running in less than a business week! And across the pond, our friends in the UK only need 5 days to start a business. But wait, it gets better!
In China, you’ll need to set aside 9 days to start a business. In Ireland, it’ll take you 11 days, and in India, you’ll need to clear your schedule for 18 days!
So, what are you waiting for? Get that business idea brewing and start it up in record time!
15. JULL Labs is the most well-funded tech startup in the US, with $15 billion in disclosed equity funding.
August 2023, the king of tech startups in the US is none other than JUUL Labs!
This Cali-based e-cigarette company has got a whopping 15 billion dollars in disclosed equity funding!
That’s right, folks, they’ve got more cash than a Vegas casino!
16. More than 50% of Small Business owners believe the US would remain the center of technology after a decade.
According to small business statistics, More than 50% of small Business owners believe that The USA will be the center of tech
Digital Transformation of Small Business Stats
Table 1: Online Shopping and eCommerce
|eCommerce market share in global retail sales (2022)||19.7%|
|Projected eCommerce market share in global retail sales (2026)||24%|
|Global population that shops online||28%|
Table 2: Artificial Intelligence in Small Businesses
|US market value of AI by 2026||$299.6 billion|
|Percentage of small businesses using AI||25%|
|Top AI uses in small businesses||Chatbots, task automation, predictive analytics|
Table 3: Customer Reviews and Local Business Support
|Percentage of customers who read online reviews||95%|
|Percentage of customers willing to pay more for brands with positive social proof||58%|
|Percentage of customers who shop to support local businesses||70%|
|Percentage of millennial and Gen X customers who shop local via online shopping||45%|
|Percentage of customers over 45 who decide to shop in-store to support local businesses||56%|
Table 4: Technology Use in Small Businesses
|Percentage of small business owners who believe technology helped their business survive the pandemic||86%|
|Number of digital tools used by small businesses experiencing an increase in sales, profits, and employment||More than 6|
|Percentage of entrepreneurs planning to implement AI and virtual reality||63%|
17. Small business statistics reveal that 39% of Small Business owners feel China will be the global tech center by 2028
According to recent stats, 39% of you seem to think that China will be the global tech center by 2028.
And, guess what? Startup USA’s Global Startup Cities report seems to agree with you! But don’t get too comfy just yet, my friends.
While Beijing and San Francisco are currently the top dogs in the startup game, London is quickly catching up to give them a run for their money.
So, buckle up, folks! It looks like the competition is heating up, and only time will tell who will come out on top in the end.
18. Small businesses accounted for 1.6 million new jobs in 2023
In 2023, a whopping 99.9% of all businesses in the United States were small businesses.
And guess what? These small businesses are giving out jobs left and right, with 1.6 million new jobs popping up over the year.
It’s like Oprah giving out jobs, but instead of cars, it’s small businesses. And the best part? The number of small businesses in the US is increasing by 2.1% from 2019 to 2023.
So, if you’re not part of a small business yet, you better jump on that bandwagon before it’s too late!
19. Small businesses are responsible for 48% of the jobs in the 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.
Do you know who’s the real MVP of the economy? It’s the small businesses, baby!
These little guys may be small, but they sure are mighty. Every year, they create a whopping 1.6 million new jobs, and they’re responsible for a massive 60.6 million jobs across the US. That’s right, you heard me, 60.6 million!
And get this, that accounts for almost half of the entire US workforce! So next time you pass by a mom and pop shop, give ’em a little nod of appreciation, because they’re the real deal.
21. The average U.S. citizen works 1779 hours a year.
let me tell you something about small businesses – they work harder than a mule on a treadmill! These little guys are determined to break free from the small business label, and that means they put in the hours.
And guess what? The good old U.S. of A is the eleventh most hard-working country out there, clocking in about 1779 hours a year.
That’s right, we don’t take our foot off the pedal, we keep on trucking, and we get the job done!
So, if you’re a small business owner, keep on working those long hours, and you’ll soon be breaking out of that small business label in no time!
22. The most profitable small businesses are accounting, tax preparation, bookkeeping, and payroll services, with a profit margin of 19.8%.
it looks like the math wizards in accounting, tax preparation, bookkeeping, and payroll services have been counting their way to the top of the small business food chain with a whopping profit margin of 19.8%.
They’re followed closely by the legal eagles with a 17.8% profit margin, proving that it pays to know the law. And last but not least, the oil and gas extraction folks have been digging their way to a 16.4% profit margin, making sure they strike gold with every hole they drill.
So, if you’re looking to start a small business, you might want to brush up on your numbers, your legal know-how, or start digging in the dirt!
The Size of Small Businesses Statistics
Table 1: Size of Small Businesses in the US
|Size of Small Business||Number of Businesses|
|No Employees||27.1 million|
|1-19 Employees||5.3 million|
Note: Out of the total 33.2 million small businesses in the US.
Table 2: Small Business Employment Statistics
|Small Business Employment||Number of Employees|
|Total Employees||61.7 million|
|Percentage of Total US Employees||46.4%|
|Small Businesses with No Employees||80%|
|Small Businesses with 1-19 Employees||16%|
|Small Businesses with 20-499 Employees||4%|
23. There are 33 million small businesses in the America.
Did you know that the US is chock-full of small businesses? That’s right, buckaroo, there are a whopping 33 million small businesses with less than 500 employees!
And get this, 98.2% of those businesses have less than 100 employees. Yeehaw! And if that ain’t enough to wrangle your cattle, firms with less than 20 employees make up a whopping 89% of all businesses in the US.
That’s a whole lot of cowpokes making their way in the Wild West of entrepreneurship!
24. A small business can have 250 to 1,500 employees.
Depending on what kind of work they do, they can be as small as a tiny ant or as big as a mammoth! Yup, you heard me right! Some folks think that a small business should have no more than 250 employees, while others say it can have as many as 1,500!
Now, here’s something else to keep in mind. These small businesses are often run by folks like you and me. They’re private companies, partnerships, or even a one-man show run by a sole proprietor. And while they may not rake in as much moolah as their larger counterparts, they sure do pack a punch!
25. Out of the 33 million small businesses, 4 million are microbusinesses with one to nine employees.
When it comes to small businesses, size doesn’t matter. In fact, there are a whopping 4 million SMBs in the good ole U.S. of A, which means they make up 99.9% of all businesses out there!
And if you think that’s impressive, get this: 4 million of those businesses are micro businesses with just one to nine employees. But don’t let their size fool you, because small businesses are job-creating machines!
They churn out 1.5 million new jobs each year, which means they account for a whopping 64% of all new jobs in this great nation of ours.
So, if you’re looking for a job, you might want to consider a small business – they might just have the perfect gig for you!
26. There are 582 million entrepreneurs in the world.
According to the latest Global Entrepreneurship Monitor, over 582 million people across 65 different economies are starting or running their own businesses.
That’s like the population of a whole continent!
This is proof that entrepreneurship is a driving force behind economic growth and societal well-being. So keep on hustling, you ambitious entrepreneurs!
27. 15 million Americans work full-time for their own business.
According to FreshBooks, a whopping 28.2% of American workers were self-employed in 2019, as reported by Intuit’s QuickBooks.
That’s right, folks, almost a third of us are saying goodbye to the traditional 9-to-5 and embracing the freedom of being our own bosses!
And get this – one in every five workers is even planning to make a complete 180-degree career change to dive headfirst into entrepreneurship! Looks like the days of being chained to a desk are coming to an end, my friends.
28. The number of small businesses in the U.S. has doubled since 1982.
Oh boy, small businesses are multiplying like rabbits in the US! Since 1982, there’s been a 54% increase in the number of small businesses, with about 20 million of them currently in operation.
And get this, half of those businesses are going at it full-time, while the other half are part-time hustlers. That’s a lot of entrepreneurs out there chasing their dreams!
Small Business Residential and Commercial Services Sector statistics
Table 1: Small Business Growth in the United States
|Year||Number of Small Businesses||Full-Time||Part-Time|
|2023||More than 40 million|
Table 2: E-Commerce Statistics
|Purchases made through e-commerce by 2040||95%|
|Increase in the number of small businesses in the U.S. since 1982||100%|
|E-commerce sales on mobile devices as a percentage of total sales in 2021||73%|
|Mobile e-commerce revenue as a percentage of total U.S. e-commerce revenue||53.9%|
Table 3: Consumer Behavior in Online Shopping
|Visual dimension as the top factor affecting purchase decisions||92.6%|
|Shoppers who believe image quality is the most important factor||90%|
|Increase in shopping cart abandonment rate with a 2-second delay in load time||87%|
|Customers who trust online reviews and testimonials as much as personal recommendations||85%|
|Users who would abandon a purchase if the connection is not secure||84%|
|Shoppers who consider shipping details as essential||62%|
|Shoppers who look for product reviews||93%|
29. It’s estimated that by the year 2040, 95% of purchases will be through e-commerce
Well, well, well, look at that! The number of small businesses in the US has grown by 54 percent since the year 1982.
We’re talking corporations, partnerships, and sole proprietorships here, folks.
And get this, only half of the 20 million businesses work full-time while the rest of them do their thing on a part-time basis. Who says you gotta work 24/7 to be successful, right?
30. The number of small businesses in the U.S. has doubled since 1982.
if you’re not supporting mobile devices for your eCommerce, you’re missing out big time!
Listen up, folks, because the numbers don’t lie: the portion of eCommerce sales made using smartphones and tablets will continue to grow, and overall online sales will rise to 95%. Can you believe it?
That’s a huge jump from just 18% in 2018! So don’t be left in the dust, make sure your online shop is mobile-friendly and accessible for all those shopping on the go. Your customers will thank you, and your wallet will too!
31. 92.6% say the visual dimension is the #1 factor affecting their purchase.
Since 1982, we’ve seen a whopping 54% increase in small businesses here in the good ol’ USA. And we’re not just talking about mom-and-pop shops here, we’re talking corporations, partnerships, and sole proprietorships too!
Now, out of those 20 million businesses, about half of them are operating full-time, and the other half are part-time hustlers.
So, if you’re thinking about starting your own small business, just know that you’re in good company, and there’s plenty
32. 90% of shoppers believe image quality is the most important factor when making online purchases.
Did you know that the way your online store looks could make or break your sales? Yeah, you heard that right! A whopping 93% of consumers think that visual content is THE thing that makes them hit that “Buy” button.
And if that’s not enough, 90% of shoppers are all about that high-quality eCommerce image life.
So, if you’re trying to sell something online, make sure it looks like a million bucks, or you might just be missing out on some serious cash, my friends!
33. A two-second delay in load times increases the shopping cart abandonment rate to 87%.
Did you know that even a mere 2-second delay in website load time can send your potential customers running for the hills? That’s right, folks, a whopping 87% of users will abandon your site faster than you can say “website load time” if it takes too long to load.
And let’s face it, nobody wants to stick around for a slow-loading site that feels like it’s moving at a snail’s pace. So, if you want to provide your users with a top-notch customer experience, make sure your website is lightning-fast and loads faster than a cheetah on Red Bull.
34. 85% of customers trust online reviews and testimonials as much as personal recommendations.
A whopping 91% of people are reading online reviews regularly or occasionally. That’s right, they’re not just scrolling past your reviews like they do with your ex’s Instagram feed.
And if you thought personal recommendations were the holy grail of marketing, think again – 85% of people trust online reviews just as much as a recommendation from their bestie.
And let’s not forget, these folks make up their minds quick – 68% of them form an opinion after reading only one to six reviews. So don’t underestimate the power of those stars and comments, my friends. They can make or break your online presence.
35. 84% of users would abandon a purchase if the connection is not secure.
A recent GlobalSign study found that a whopping 84% of users would rather take a hike and abandon their purchase if they stumble upon an unsecure connection. Yep, you heard that right!
So make sure to keep your site secure and lock those doors, or you might just be saying goodbye to potential customers faster than a toupee in a tornado.
36. By the end of 2021, 73% of e-commerce sales took place on mobile devices.
Did you know that mobile is taking over the e-commerce world? According to eMarketer and Statista, in 2021, a whopping 73% of all e-commerce sales are expected to come from mobile devices.
That’s right, folks! You can now shop till you drop from the comfort of your own phone. And get this, just five years ago, in 2016, mobile only made up 52.4% of e-commerce sales.
That means mobile is accelerating faster than a cheetah on a caffeine high! So, keep your eyes peeled, because soon enough, your phone might just be your new shopping buddy.
37. 68% of small businesses don’t have a proper conversion rate optimization strategy for their stores.
Surprisingly, Around two-thirds of businesses still don’t have a structured CRO strategy in place
38. 62% think shipping details are essential.
Turns out that the need for speed isn’t always the most important factor for online delivery. That’s right, recent research shows that customers actually care more about reliability, convenience, and cost.
So, don’t get your delivery van in a bunch trying to beat your record time, focus on getting those packages to your customers in a reliable, convenient, and cost-effective way. Your customers will thank you, and you’ll still have time to stop for a donut on the way back to the warehouse.
39. 60% of shoppers say website usability is important for them.
Did you know that website usability is super important to your customers? According to a survey of nearly 1,000 US consumers, a whopping 60 percent said they care about website usability. So, what can you do to make your website more user-friendly?
Well, you can use things like visual hierarchy, colors, and consistency to make it easier to use. Because let’s face it, nobody wants to be confused and frustrated while shopping online. So, let’s make it easy for them and watch those sales roll in!
40. In 2021, mobile e-commerce revenue accounted for 53.9% of total U.S. e-commerce revenue.
By the year 2025, over 10% of all retail sales in the US of A will be made via mobile devices. That’s almost 7% more than in 2018.
Looks like we’ll be buying more stuff with just a few taps on our screens. In fact, experts predicted that m-commerce would make up almost 6% of all retail sales in 2021.
Who needs a shopping cart when you can have a shopping phone, am I right?
41. 93% look for product reviews.
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
COVID-19 Impact on Small Businesses
|Workforce laid off or furloughed in 2020||27%|
|Small businesses that kept all employees during pandemic||29%|
|Businesses in food services and accommodation negatively impacted by COVID-19||83.5%|
|Small business owners who rely on federal government relief for recovery||4%|
|Small business owners who think it could take 6 months to a year for recovery and return to normal||56%|
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.
Over half of internet users are using their trusty mobile phones to buy things online. And that’s not all!
A whopping 70% of these folks are using shopping apps on their mobile devices, whether it’s a phone or a tablet.
Looks like the days of heading to the store and lugging around shopping bags are slowly but surely becoming a thing of the past.
Who needs arm muscles when you can just tap, swipe, and click your way to a brand new wardrobe?
43. 50% of total e-commerce revenue comes from mobile.
it looks like the world is going mobile! Retail m-commerce sales have skyrocketed to $37.96 billion in 2020, up from $30.2 billion in 2019.
That’s almost 50% of the total retail e-commerce sales of $79.41 billion! And let’s not forget about India, where m-commerce sales were valued at $23.6 billion in 2018.
Sure, that might seem small compared to the $1.5 trillion Chinese smartphone users spent in 2019, but we can’t ignore the fact that India has experienced a more than 6X jump from 2015!
It’s clear that mobile commerce is the way of the future, so get ready to shop till you drop (your phone)!
44. Red buy buttons can increase sales and conversions on e-commerce websites by as much as 34%.
Did you know that adding red buy buttons on your website can increase your sales by a whopping 34%?
Yeah, you heard it right! But, wait a minute!
Don’t get too excited yet. Before you start painting your website red, let me tell you that it’s not just because it’s the color red that’s doing the trick.
It’s more because of its high contrast that makes it stand out from the rest of the page.
So, if you really want to boost your sales, you might want to consider using colors that pop out and contrast well with the rest of your website. Who knew that color psychology could be so interesting, eh?
45. 24% of people will abandon their carts immediately If account creation at checkout is required.
it looks like 23% of online shoppers just can’t be bothered with creating a new user account.
Some websites are so clingy with their membership model, that they drive away potential customers faster than a cheetah chasing after its prey. Let’s face it, not everyone wants to join your club.
They just want to buy their stuff and be on their way.
46. 5% of small and mid-sized businesses believe that free shipping increases their sales profits.
Hoist the sails and set a course for free shipping! It be a powerful tool to lure in customers and send sales soaring on yer eCommerce platform.
Aye, every landlubber loves the thought of free shipping – they can’t resist the siren call of “free”!
So, it be no surprise that shoppers tend to favor online stores that offer free shipping.
Arrr, when you offer free shipping, you’ll see a sea change in customer behavior – they’ll be more likely to fill their treasure chests with your wares, shiver me timbers!
47. On average, only 1.94% of e-commerce website visits convert into a purchase.
It looks like the odds are not in your favor when it comes to online shopping. On average, only 1.94% of visitors to an ecommerce website actually end up making a purchase. In other words, out of 51 visitors, only one person will click that “add to cart” button.
It’s like trying to find a needle in a haystack! Don’t let those missed opportunities get you down, though. Keep optimizing your website and who knows, you might just strike gold.
48. Only 1% of users say e-commerce websites meet their expectations every time
You know what really grinds my gears? Bad customer service! According to a survey, 86% of buyers are willing to shell out more moolah for a top-notch customer experience. But wait for it, only 1% of customers feel that vendors consistently deliver the goods. That’s right, you heard it – ONE PERCENT!
Now, imagine this – what if you could bump up the percentage of happy customers by just 5%? That could be a real game-changer in terms of cha-ching and bankroll. So, listen up, companies big and small – make sure to treat your customers like kings and queens, and watch that sweet, sweet cash flow in!
49. EdTech and eCommerce are the most popular industries for startups in 2021.
If you wanna be the next big thing, you gotta keep your eye on the prize. And what’s the prize, you ask? Well, it’s none other than those industries that are set to take off like a rocket! You heard me right, folks.
If you wanna make it big, you gotta get on board with EdTech, eCommerce, and streaming services.
And let’s not forget healthcare, leisure & entertainment, and logistics. These are the industries that are gonna be around for the long haul, so if you wanna stay ahead of the game, you gotta keep your finger on the pulse.
So, get cracking and take advantage of these small business stats to make your business soar!
50. A 80% increase was seen in the warehouse and self-storage industry in 2021.
The warehouse and storage industry is booming like a fireworks show on the Fourth of July! UNITS, one of the franchises in this industry, took home the prize for the most SBA loan approvals in 2021. Talk about hitting the jackpot!
But wait, there’s more! Gas stations, beer, wine, and liquor stores, and hospitality are also crushing it with growth rates of 57.86%, 50.53%, and 47.12%, respectively.
Some of this growth can be attributed to the gradual recovery from the COVID-19 crisis, but it’s also just plain old-fashioned business success.
These industries are thriving more than they were pre-pandemic, and it’s like watching a caterpillar transform into a beautiful butterfly.
So let’s raise a glass and celebrate the growth of these industries! Cheers to success!
Small Business Retail Sector statistics
51. The average cost of starting a retail business is $32,000
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
looks like the retail business world is full of scrappy, penny-pinching entrepreneurs!
According to the stats, 42% of these daring folks get started with less than 5,000 smackers. And 58% of them start with less than 25,000. That’s some serious budgeting skills!
But even with their frugality, 65% of these brave business owners admitted to being a bit anxious about whether they had enough dough to get started. Can’t blame ’em, starting a business is a risky venture.
And just to show how savvy these retail entrepreneurs are, a whopping 93% of them crunch the numbers and calculate that they’ll break even within 18 months or less.
Looks like these folks have a nose for business and a head for numbers!
53. Starting a food business can set you back up to $125,000
It’s no secret that we’re living in the age of celebrity chefs, and who among us hasn’t dreamed of being a restaurateur? But before you go investing your life savings into a new food venture, let’s talk turkey about the costs.
Brace yourselves, because it ain’t cheap. Starting a food business can cost you a hefty $125,000, give or take a few crumbs.
Now, I hate to be a Debbie Downer here, but I have to give it to you straight. According to our friends at the Bureau of Labor Statistics, the number of food and beverage establishments has been on the rise since 2019, but here’s the kicker: most of them are destined for failure.
Yep, you heard me right. The odds are not exactly in your favor.
But hey, if you’re still determined to pursue your culinary dreams, just make sure you have a solid business plan in place, a killer menu, and a sprinkle of luck. Good luck, my fellow foodies!
54. Restaurant franchises may require an initial investment of as low as $25,000
Did you know that in 2023, there are a whopping 15.1 million people working in the restaurant industry in the good ol’ USA?
That’s a lot of chefs, servers, and dishwashers dishing out some delicious meals!
And if you’re thinking of joining the restaurant game, here’s some great news for ya. Some restaurant franchises may only require an initial investment of $25,000
That’s like the price of a fancy car, but instead of driving around, you’ll be cooking up a storm and serving up some scrumptious eats.
So what are you waiting for? Let’s get cooking and start that restaurant dream today!
55. The top industry for small businesses is food and restaurants.
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.
In 2020, retail and business services were neck and neck, fighting for the top spot like it’s a WWE wrestling match.
They both grabbed 13% of the share! But wait, there’s more! The construction and contracting industry came in hot at 12%.
Meanwhile, food, restaurant, residential, and commercial industries were all tied up at 9% each. Looks like everyone’s getting a piece of the pie, or should I say, a slice of the pizza!
57. Small businesses with 50 or fewer employees account for 98.6% of all retail firms.
it turns out small businesses are big players in the retail game, employing almost 40% of all retail employees. And let me tell you, these little guys are no slouches when it comes to making that sweet, sweet moolah.
They’re raking in an average of $22,341 in monthly revenue, with a pretty impressive 51% gross margin. And what do these savvy business owners do with their profits, you ask?
They’re not jetting off to the Bahamas or buying a yacht (although that would be pretty sweet), no sirree, they’re reinvesting in their local community by supporting those big, bad chains. Now that’s what I call good business sense!
Small Business Owner Demographic statistics
Gender Small Business Statistics:
|Gender||Percentage of US Businesses||Number of Employees||Revenue Generated|
|Women||51%||8.9 million||$1.7 trillion|
Race Small Business Statistics:
|Race||Percentage of Self-employed||Rely on Personal Credit Cards|
Small Business Owner Demographic Stats:
|Women-Owned||– Women-owned businesses have increased by 114% over 20 years.|
|– Revenue share of women-owned businesses dropped by 0.02%.|
|Minority-Owned||– Minority-owned businesses are less likely to attract funding.|
|– Only 5% of Black individuals were self-employed.|
|Age||– Founders tend to be in their 40s.|
|– Success rate is highest between mid-30s and 50.|
|– Success rate declines after age 50.|
|Education||– 44% of owners have a bachelor’s degree.|
|– 31% have an associate degree or some college.|
|– 20% have a GED or high school diploma.|
|– 5% did not complete high school.|
|Income||– Small businesses with no employees average $46,978 annually.|
|– Small business owners make an average of $71,813 annually.|
|– 86.3% of small business owners make less than $100,000 per year.|
|– Women-owned businesses in 2007 averaged $130,000, compared to $570,000 for male-owned.|
|– Small firms with no paid employees making between $1 million and $2.49 million increased by 1.6% in 2016.|
58. Gen-Xers account for 46% of small businesses.
It looks like Gen-Xers are leading the pack in the small business game, with Boomers not too far behind. Those millennials are making a go of it too, but they still have some catching up to do.
And let’s not forget about Gen-Zers, who are just getting started and making up a measly 1% of small business leaders. It’s anyone’s game, but it’s clear that experience counts in this business.
59. Over 4 million small businesses in the United States are owned by minorities.
The United States is now home to over four million minority-owned businesses! These companies are raking in some serious dough too, with annual sales reaching nearly $700 billion!
That’s a whole lot of moolah, folks! So, if you’re thinking of starting your own business, you might want to consider joining the ranks of these successful minority entrepreneurs.
Who knows, you could be the next big thing!
60. 34% of women business owners hold a Bachelor’s degree
According to small business statistics, women entrepreneurs are taking the world by storm, and they’re not just pretty faces – they’ve got brains, too!
In fact, the majority of women business owners are highly educated, with 34% holding a bachelor’s degree, and 27% holding a master’s degree.
And get this: around 8% of these boss babes have even earned a Doctorate degree! So, whether you’re a woman with a brilliant business idea or someone who supports female entrepreneurship, know that these ladies are paving the way for future generations of women in business.
Keep hustling, ladies!
61. 70.8% of US business owners are Caucasian
Did you know that Hispanic or Latino people are making a huge splash in the business world, making up 14.39% of US business owners? That’s right, they’re taking the entrepreneurial world by storm!
But wait, there’s more! Our Asian friends aren’t too far behind, making up 6.17% of business owners, while African Americans are right there with them at 6%. Talk about diversity!
And here’s a fun fact for you: immigrant-owned businesses are crushing it in the US, accounting for a whopping 30% of small business growth! That’s right, those who dared to take a leap of faith and come to this great nation are making their mark on the business world.
In 2019, 3.2 million immigrant entrepreneurs comprised 21.7% of all business owners. That’s right, these bold individuals are carving out their own path and making a name for themselves!
It’s no surprise that small businesses owned by immigrant entrepreneurs are particularly prominent in construction, transportation, utilities, and retail trade industries. These folks are truly making a difference in the world of business ownership.
So, if you’re feeling inspired, go out there and start your own business. Who knows, maybe you’ll be the next big thing!
62. Young entrepreneurs are 188% more likely to side-hustle with a small business.
My fellow millennials and Gen Zers! Are you tired of the 9-to-5 grind and dreaming of making some extra cash on the side? Well, you’re not alone! The craze for passive income is skyrocketing, and it’s not showing any signs of slowing down. That’s why more and more young entrepreneurs are taking the leap and starting side hustles to boost their income.
In fact, did you know that we millennials and Gen Zers are 188% more likely to start a small business as a side hustle compared to other age groups? That’s right, we’re not just sitting around waiting for success to fall into our laps. We’re hustling hard and making things happen!
So, if you’ve got a killer idea or a unique talent, why not turn it into a side hustle? Who knows, it could turn into a full-blown business one day! The possibilities are endless, and the only limit is your imagination. So go out there, start hustling, and let’s show the world what we’re made of!
63. 19.4 million non-employer businesses in the U.S. are sole proprietorships.
Did you know that in the good ol’ USA, there are about 19.4 million non-employer businesses that are one-man-show sole proprietorships?
That’s right, folks, they’re the kings and queens of their own little empires! And that’s not all, we’ve got 1.6 million partnerships, and 1.4 million corporations rounding out the mix.
So don’t you dare think that you can’t do it, because with those kind of numbers, the sky’s the limit! You can be your own boss, call your own shots, and create your own destiny!
So get out there and start your own business, because you’ve got this!
64. According to small business owners statistics provided by UENI in 2020, 45% of small business owners are female.
Can you believe that in 1972, women owned only a measly 4.6% of all businesses? But hold on to your hats, folks, because times are changing!
Nowadays, women are taking the entrepreneurial world by storm and owning businesses left and right. It’s a beautiful thing to see women breaking barriers and shattering glass ceilings. Keep it up, ladies! The sky’s the limit!
65. Between 1997 and 2017, female entrepreneurship grew by more than 114%.
According to the 2017 State of Women-Owned Businesses Report, our number of businesses has grown by a whopping 114% from 1997 to 2017!
That’s right, we’re not just breaking the glass ceiling, we’re shattering it into a million pieces!
And get this, while the overall national growth rate for all businesses was only 44%, we exceeded that number by more than double! As of January 2017, there were more than 11.6 million women-owned businesses in the U.S. alone.
So, let’s keep pushing, keep striving, and keep dominating the business world, ladies! We’ve got this!
66. 47% of women started a business in the last year, compared to 44% of men.
Did you know that almost half of women entrepreneurs started their own business to pursue their passion? That’s right, they didn’t let their dreams just remain dreams, they went out there and chased them down!
And let’s not forget about the second most popular reason for starting a business: financial independence. These women know that they deserve to be in control of their own financial destiny, and they are making it happen!
And finally, we have flexibility as the third motivator. These ladies understand that life is not a one-size-fits-all, and they want to create a business that fits around their lifestyle, not the other way around.
So if you’re a woman with a dream, take inspiration from these amazing entrepreneurs and go out there and make it happen!
67. 71% of small businesses run by women are profitable while 80% of small businesses men-led are profitable.
Now, we all know that these boss ladies are kicking some serious butt, but there’s still some work to be done. According to a study, men-owned small businesses are still taking the lead when it comes to profitability.
But don’t let that discourage you, ladies! 71% of women-led small businesses are still making a profit, and that’s nothing to sneeze at! So let’s keep pushing, keep striving, and keep breaking those glass ceilings. Who run the world? Girls! And soon enough, we’ll be owning it too.
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.
Did you know that a whopping 36 percent of Black small business owners became their own bosses because they were ready to take charge of their lives? That’s right, they wanted to be the boss of their own destiny! And 24 percent were chasing their passion.
Can you believe it? They are living proof that when you do what you love, you never work a day in your life!
But that’s not all, folks. 17 percent of these entrepreneurs were inspired with a brilliant business idea, while another 17 percent were fed up with corporate America. And guess what? They’re killing it as small business owners!
That’s right, the majority of them – 42 percent to be exact – are extremely happy with their decision to take the leap and start their own businesses.
So, what are you waiting for? Follow in their footsteps and chase your dreams! You never know, you could be the next successful small business owner who inspires others to take the leap of faith.
69. 49% of small business loans from banks go to white-owned businesses, while only 3% of loans went to Black-owned businesses.
Let’s give ourselves a round of applause for surviving the COVID-19 pandemic! It hasn’t been easy, especially for our friends in the Black-owned business community. They have been hit particularly hard by the pandemic and shutdowns. But let’s not lose hope!
We are resilient and we will keep pushing forward. Many of us were already running our businesses on slim margins, but we are determined to make it work. Let’s keep supporting each other and building each other up. Together, we can overcome any obstacle that comes our way!
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.
If you’re feeling like you’re too old to start a business, I’ve got some news for you that’ll knock your socks off! The average age of a small business owner is actually 50.3 years old! That’s right, you heard me!
You don’t have to be a young gun to make it big in the business world!
And that’s not all, folks! Not only do these seasoned business owners have years of experience under their belts, but they also earn 21% more than the average population! So, if you’re in the 50-59 age bracket, you’re in good company with 35% of small business owners falling into that age range.
And don’t worry if you’re in your 40s or 60s either, because 25% and 18% of business owners respectively are in those age groups too!
Even if you’re a young whippersnapper, don’t let your age hold you back! There’s still room for you in the business world, with 14% of small business owners being in their 30s and 4% in their 20s.
And let’s not forget the grandpas and grandmas out there! 4% of small business owners are 70 or older, proving that age is just a number!
So, don’t let your age hold you back from pursuing your dreams! With hard work, determination, and a little bit of luck, you too can join the ranks of successful small business owners!
71. People aged 50-59 are the most common small business owners.
Did you know that people in the age bracket of 50 and above account for a whopping 35% of all small business owners? That’s right, you don’t have to be a spring chicken to make it in the business world.
And don’t worry if you’re not quite there yet, those in the 40-49 age group make up 25% of small business owners, so you’re still in good company. And even if you’re still a few years away from hitting the big 5-0, there’s no need to worry because the 60-69 age group still makes up a solid 18% of small business owners.
So, whether you’re a seasoned pro or a fresh-faced newbie, there’s room for you in the world of small business. Keep pushing forward, you’ve got this!
72. 45 is the most successful age to be a small business owner.
Believe it or not, studies show that the most successful age to start a small business is 45. That’s right, my middle-aged comrades, it’s our time to shine! And you know why? Because we’ve got experience on our side.
See, when you hit that 4-5, you’ve already been around the block a few times. You’ve seen the ups and downs of life, you’ve faced challenges head-on, and you’ve probably made a few mistakes along the way. But guess what? All of that experience is going to come in handy when you start your own business.
You see, people in our age group aren’t first-time entrepreneurs. We know what it takes to succeed because we’ve been there, done that. And if we do fail, we’ve got the resilience and determination to pick ourselves up, dust ourselves off, and try again.
So don’t let anyone tell you that you’re too old to start a small business. Age is just a number, baby! And when it comes to small business success, 45 is the new 25. Let’s show the world what we’ve got!
73. Millennials will make up 75% of the global workforce by 2025.
Did you know that by 2025, you’ll make up 75% of the global workforce? That’s right, you guys are taking over the world.
And guess what? You’re not just in it for the paycheck. Nope, you want more than that. You want to work for companies that foster innovative thinking, develop your skills, and make a positive impact on society.
You want to be a part of something bigger than yourselves, and that’s pretty darn inspiring if you ask me. So keep doing what you’re doing, you savvy tech leaders, you. The future is bright, and it’s all thanks to you!
74. Millennials currently make up 35% of America’s labor force.
Did you know that we are the largest generation in the U.S. labor force? That’s right, we make up more than one-third (35%) of American labor force participants.
We’re taking over, folks! It’s time to show the world what we’re made of and make our mark in the workforce. So let’s keep pushing forward, chasing our dreams, and making a difference. The future is bright, and we’re leading the way!
75. Millennials already run over 16% of small businesses in America and this number is set to grow.
That’s right, according to a recent small business stats survey, millennials are the generation most likely to have some type of small business.
Move over, baby boomers, and make way for the young entrepreneurs! It’s inspiring to see so many young people taking charge of their careers and carving their path to success.
Who knows, maybe the next big thing will come from one of these millennial-owned small businesses. Keep up the great work, millennials!
Small Business Survival Statistics
Table 1: Small Business Survival Statistics
|Small businesses opened in the last year||Over 1.1 million|
|Difference between small businesses opened and closed in the last year||180,528 more opened than closed|
|Percentage of businesses that fail within the first year||20%|
|Percentage of businesses that fail within the second year||30%|
|Percentage of businesses that fail by year five||50%|
|Percentage of businesses that fail due to lack of market demand||42%|
|Percentage of businesses that fail due to running out of capital||38%|
|Industry with the highest failure rate in the first year||Professional, scientific and technical services (19.4%)|
|Industry with the highest survival rate||Healthcare and social assistance|
Note: All data are from the U.S. Small Business Administration (SBA) and other sources as indicated.
Table 2: Reasons for Small Business Failure
|Reason for Failure||Percentage|
|Lack of market demand||42%|
|Running out of capital||38%|
|Not using available resources||7%|
|Pricing or cost issues||6%|
76. Small businesses with founders aged 55+ tend to survive.
You may think you’ve got all the energy and fresh ideas, but when it comes to running a successful small business, the older, wiser founders aged 55+ are the ones who really know what they’re doing!
According to a 2018 study, small businesses founded by these experienced entrepreneurs tend to survive and thrive, even with fewer employees. And get this – the highest-growth new firms don’t just come from middle-aged folks, but also from those who are even older!
So don’t let anyone tell you that age is just a number – because when it comes to running a small business, it can be a real advantage. So embrace your wisdom, get out there, and show the world what you’ve got!
Small Business Owner’s Degree statistics
77. Most small business owners don’t have a college degree.
Who needs college when you’ve got the entrepreneurial spirit? The majority of small business owners never even stepped foot in a college classroom, let alone earned a degree. With only 26% of owners having a bachelor’s degree, it’s clear that a degree isn’t a requirement for success.
In fact, 20% of small business owners didn’t go to college after high school, and a scrappy 5% didn’t even finish high school. These numbers prove that it’s grit, determination, and hard work that can lead to entrepreneurial success.
So don’t let a lack of formal education hold you back from starting your own business. All you need is a dream, a plan, and the drive to make it happen. Go out there and show the world what you’re made of!
78. The majority of business owners are only educated to the high school level.
According to recent statistics, 33% of business owners have only a high school education, proving that a diploma is just the beginning of your journey.
And, for all you smarty pants out there, 29% of business owners have a Bachelor’s degree. Not too shabby, right? But wait, there’s more!
Associate degree holders make up 18% of business owners, while 16% hold a master’s degree. And for all the overachievers out there, only 4% of business owners hold a doctorate.
So, whether you’re a high school graduate or a Ph.D. holder, know that education is just a stepping stone towards your dreams, and with hard work and dedication, you too can achieve greatness!
Small Business income statistics
|Estimated 2020 annual sales exceeding $200,000||27%|
|Average annual sales for non-employers||$46,978|
|Percentage of owners taking a yearly salary of less than $100,000||Over 86%|
|Percentage of businesses beginning with $10,000 in capital||64%|
|Percentage of entrepreneurs who don’t think they have enough cash to start a business||65%|
|One-third of successful small businesses started with less than $5,000||33%|
|Percentage of local businesses depending on social media to drive revenue||41%|
79. The base salary of a small business owner in the US ranges between $30,000-$130,000/year
You’re probably wondering, how much moolah can I make as a small business owner? Well, on average, small business owners rake in $65,784 per year.
But wait, there’s more! If you’re just starting out, don’t fret. Even entry-level small business owners with less than one year of experience still make an average of $30,913 per year. And if you have 1-4 years of experience, you can expect to make around $50,200 per year.
Now, for all you seasoned veterans out there, who’ve been grinding it out for 5-19 years, the estimated earnings range from $61,000 to $68,000 per year. And for those of you who have been in the game for over 20 years, the average annual income is $76,253.
So, whether you’re just starting out or you’ve been at it for decades, keep pushing and striving for success. You never know, that extra hustle might just land you a few extra Benjamins in your bank account!
80. About 86% of small businesses report less than $100,000 in yearly revenue.
Did you know that despite all the hard work you put in, the majority of you tend to make less than $100,000 a year? But don’t let that bring you down!
The average salary for small business owners is still a respectable $67,919 a year. Keep hustling and pushing forward, and who knows, maybe one day you’ll be part of the 13.7% making over six figures!
Remember, success doesn’t come easy, but with determination and perseverance, you can achieve anything you set your mind to. So keep chasing those dreams, small business owners!
81. Lawyers make the most money, with an average income of $141,890.
The top dogs in the profit game are none other than those legal eagles, lawyers. These folks bring home an average of $141,890 per year, and you know what they say, “the bigger the briefcase, the bigger the paycheck!”
But don’t fret if law isn’t your thing, we’ve got options for everyone! Coming in hot at second place are the tech wizards, software, and app developers.
With an average annual return of about $106,710, they’re laughing all the way to the bank. And let’s not forget about the creative types, independent artists, writers, and performers. They’re breaking in the dough too, earning an average of $98,960.
So if you’re looking to make it rain, folks, it’s time to think about your career path. Who knows, you may be the next legal mastermind, tech guru, or creative superstar! Let’s make that money and live our best lives!
82. Non-employer small businesses in the U.S. averaged an annual revenue of $46,978.
Did you know that as a business owner, you are likely to make more dough than your non-employee counterparts? Yep, you heard it right! According to the stats, non-employees earn around 30% less than small business owners.
So, keep hustling and grinding, my entrepreneurial friends, and soon enough, you’ll be reaping the rewards of your hard work! After all, who doesn’t love a fatter paycheck at the end of the day? Keep striving towards success, my fellow business owners!
83. The average revenue of a small business with employees is $4.9 million in 2021.
Get this: a small business with no employees typically brings in around $44,000 a year. But, and this is a big BUT, if that same small business hires even just one employee, the average income skyrockets to a whopping $4.9 million in 2021! So, if you’re a small business owner thinking of hiring someone, don’t be scared off by the extra expenses.
That one new hire could make all the difference and take your business to the next level. Keep on hustlin’, folks!
84. Small businesses with one to four employees averaged $387,000 in revenue per year.
Now, we all know that success isn’t just about having a bunch of employees running around, but let’s be real, they do make a big impact.
According to the stats, small businesses with up to four employees bring in an average of $387,000 per year. Not too shabby! But wait, there’s more! If you have up to nine employees, you can take that number to over $1,000,000. Cha-ching!
And it only gets better from there, folks. As your team grows, so does your revenue. So, let’s get out there and start building those dream teams!
85. On average, CEOs of the top 350 firms in the USA were paid $21.3 million in 2019.
According to some recent research, these high rollers are raking in 320 times more dough than the average worker.
That’s right, 320 TIMES! It’s like they’re living in a whole different universe, with diamond-studded swimming pools and gold-plated limousines. And get this: despite the ongoing pandemic, it looks like their riches are only going to keep on growing.
It’s enough to make you want to start your own business and become a CEO, too. Who knows? Maybe you’ll be the next one to join the 320 club!
86. The largest percentage of small businesses (24%) earned between $1 and $5 million in 2018.
Did you know that only 1% of businesses make a whopping $150 million or more in sales or revenues? That’s right, it’s the elite club of big-time earners.
But don’t let that discourage you, because 23% of businesses earn less than $100,000, and 14% make between $100,000 and $250,000.
So, even if you’re not in that top 1%, you can still build a successful business and achieve your dreams! Keep pushing and never give up on your goals.
Who knows, maybe one day you’ll be a part of that exclusive group of high-earners.
87. 47% of the private-sector workforce is employed by a small business.
Did you know that small businesses are the real MVPs in America? Yup, according to the Small Business Administration, these little guys make up a whopping 99.9% of all businesses in the US! And guess what?
They also employ almost half of the entire US workforce, at 47.1%. So next time you walk past that cute little mom and pop shop, don’t forget to give them a thumbs up for keeping America running!
88. Small businesses employ more than 59.9 million people
Did you know that almost all businesses in the US are classified as small businesses? Yes, that’s right, 99.9% of them! But wait, there’s more.
Despite their huge numbers, small businesses employ less than half of the workforce, which is about 47.3%, or roughly 59.9 million people, according to 2019 data from the U.S. Small Business Administration.
So, it’s kinda like a big group of ants trying to lift a heavy load, but only half of them are strong enough to carry it. Keep on pushing, little guys!
Biggest Challenges for Small Business Owners
Table 1: Negative Effects of COVID-19 on Small Business Firms
|Effects||Percentage of Small Businesses|
Table 2: Small Business Failure Rate
Table 3: Small Businesses are Susceptible to Cyber Attacks
|Type of Attack||Percentage of Small Businesses|
|Compromised or stolen devices||33%|
Table 4: Financial Struggles of Small Establishments
|Financial Struggles||Percentage of Small Businesses|
|Faced financial challenges||85%|
|Pursued financial assistance from the government||77%|
Table 5: Factors That Hinder the Growth of Small Businesses
|Factors||Percentage of Small Businesses|
|Employee recruitment and retention||22%|
|Lack of capital||14%|
89. 23% of small business owners list lack of capital or cash flow as their number one challenge
Are you feeling the pinch when it comes to cash flow? Well, fear not, because a recent study has uncovered the most common concerns that keep small business owners up at night.
From scrambling to get that much-needed capital to chasing down outstanding payments, this study has got the inside scoop on all the cash flow headaches that plague us entrepreneurs.
Consumer Preference for Small Business Statistics
|Small Business Preference Statistics||Percentage|
|Consumers more likely to shop at small businesses in 2020||46%|
|Consumers who say shopping at small businesses gives back to their communities and gives them more purpose in their shopping habits||53%|
|Consumers who shop at SMEs for higher-quality items||48%|
|Consumers who shop at SMEs for personalized service||45%|
|Consumers who choose small businesses when convenient||91%|
|Consumers who look for ways to support small businesses even if it’s not convenient||74%|
|Consumers willing to pay more if they receive excellent customer service from small businesses||77%|
Women-Owned Small Business statistics
90. 1,817 women-owned businesses were opened per day in 2018 and 2019.
Have you heard about the amazing progress of small businesses owned by women? Let me tell you, it’s outstanding! The creation of new businesses has taken a fast turn, especially in recent years.
In fact, reports show that the small business owner demographics are now dramatically different from what they used to be.
Back in the day, between 2002 and 2007, only 714 businesses were opened by women on average. But as we went through a recession and a recovery period between 2007 and 2012, the average number increased to a whopping 1,143! That’s a lot of girl power, wouldn’t you say? Keep on rockin’ it, ladies!
91. 17% of all women-led businesses are Latinas
In 2017, our hermanas were crushing it in the biz world! Latinas owned a whopping 17% of all women-owned businesses!
That’s right, almost 2 million firms were run by these fierce mujeres, employing nearly 600,000 workers and raking in over $100 billion in revenue!
And if that wasn’t impressive enough, these Latina bosses showed a 7% growth in their number of firms in just one year!
That’s like hitting the gas on your car and flying past all those slowpokes on the road! In comparison, the past decade only saw a 9% annual growth rate for these badass entrepreneurs!
92. According to the Small Business statistics, 19.9% of businesses are owned by women
Did you know that almost one-fifth of all businesses in the US were owned by women according to the Census Bureau’s 2019 Annual Business Survey? That’s right, girl power is taking over!
And guess what? Out of the nearly 1.1 million women-owned businesses, approximately 92% had fewer than 20 employees. So, who says women can’t run a successful business? We’re making it happen, one small business at a time!
93. 31% of women who own businesses are age 25-44
Did you know that women ages 25-44 have been three times more likely than men to take a break from work because of childcare duties? Yep, you heard that right! Women are often the primary caregivers in the family, and taking care of kids can be a full-time job in itself.
Before the pandemic, women were already more likely to work flexible schedules, which can help them balance work and home life. And let’s be honest, who doesn’t love a bit of flexibility, am I right? So, let’s give a round of applause for all the hard-working moms out there who are juggling work and family like pros!
94. 62% of women business owners are between 40 and 59 years old.
Did you know that a whopping 80% of these ladies have college degrees? Yeah, they’re smart cookies. But hold on, there’s more. Only 30% of these women are younger than 40. That means it takes years of dedication, commitment, and hard work to get to the top.
These women have been building connections, relationships, and capital for years, and it’s finally paying off. So, let’s give a round of applause to all the hard-working women entrepreneurs out there! You go, girls!
95. 88% of women-owned businesses generate less than $100,000 in revenue.
In the last decade, the number of women-led firms making over $1 million in revenue increased by a whopping 46%. That’s right, these fierce ladies are not messing around!
Now, before you get too excited, this impressive number only represents a teeny-tiny 1.7% of all women-led companies. But hey, you gotta start somewhere, right?
Don’t underestimate these powerhouse businesses, though. They may be small in number, but they are mighty in revenue. Together, they generated a total of $135 billion in revenue, making up a hefty 8% of total small business revenue for all women-owned firms.
Looks like the future is female, and profitable too!
96. Between 1997 and 2017, female entrepreneurship grew by 114%.
The ladies are crushing it in the business world! Between 1997 and 2017, women-owned businesses skyrocketed by a whopping 114% – that’s 2.5 times faster than the rest of the pack.
And boy, did it pay off. Last year, there were a total of 11.6 million women-owned businesses in the good ol’ US of A. These mighty businesses employed almost 9 million people and brought in a jaw-dropping $1.7 trillion in revenue. Now, that’s what we call girl power!
97. In 2018, 207,900 of women-led businesses (1.7%) generated more than $1 million
Let me tell you about some badass women! In 2018, there were 207,900 women-owned firms that were bringing in over a million dollars. Can you believe that? That’s only 1.7% of all women-owned firms, but still, that’s a lot of dough!
And get this, folks, more and more solo entrepreneurs are joining the million-dollar club every year.
These women are killing it and breaking records left and right. So, if you’re a woman with a business dream, go out there and make it happen! Who knows, you might just be the next millionaire boss lady.
98. In the U.S., 12.3 million businesses are owned by women
let me tell you, 12.3 million is no small potatoes. It’s like having 42% of all the pizza in America! And speaking of growth, did you know that back in 1972 there were only around 402,000 female-owned businesses?
But now, thanks to the amazing women out there, that percentage is only expected to keep on rising. Girl power, am I right?
99. The total revenue by women-owned businesses is around $1.9 trillion.
Back in 2008, only 1.7% of women-owned businesses, which was around 207,900, made more than $1 million. But hey, fast forward to today, and these women have increased their game by a whopping 46%! Oh, snap! That’s some serious progress, folks.
And wait, there’s more! According to the small business facts from 2021, women-led businesses have contributed a total of $1.9 trillion. Can you even wrap your head around that? These ladies are making some serious bank, and I’m here for it!
So, let’s give it up for all the fierce and fabulous female entrepreneurs out there. Keep doing what you do, ladies! You’re rocking the business world like nobody’s business!
100. Women make up 52.34% of sole proprietorships.
Apparently, studies show that us ladies are not that well represented in bigger companies as the number of female founders is quite low.
Can you believe that only 32.59% of businesses with four or more employees are led by a woman? Come on guys, let’s give these ladies a chance to shine!
Characteristics and Habits of Small Business Owners Statistics
Characteristics and Habits of Small Business Owners Statistics
|Founders aged 55 years or older||More likely to survive, less likely to have employees|
|Average weekly working hours||40-49|
|Completed bachelor’s degree||32%|
|Only finished high-school||12%|
|Started business due to passion for an idea||48% (Millennials and Gen Z)|
|Motivation for starting a business as own boss||29%|
|Millennials and Gen Z with a side hustle||188% more likely than baby boomers|
|Discipline needed for entrepreneurial mindset||38%|
|Women entrepreneurs by industry||Retail and wholesale (26%), government, health education, and social services (21%), and professional administrative services (18%)|
Small Business Finance Stats
|Small Business & Finance Statistics|
|Average cost of starting a micro business||$3,000|
|Starting cost of most home-based franchises||$2,000 – $5,000|
|Average cost of starting a retail business||$32,000|
|Percentage of store owners who launched their business at $5,000||42%|
|Average cost of starting a construction business||$14,000|
|Starting cost of a construction business with ready tools||< $5,000|
|Average cost of starting a food business||$125,000|
|Initial investment required by restaurant franchises||$25,000|
|Cash as the most popular SME financing||37%|
|Rollovers for Business Start-ups or 401(k) business financing||13%|
|Line of credit as SME financing||12%|
|Assistance from family and friends||10%|
|Cash flow as the biggest SME challenge||28%|
|Percentage of small businesses with an external accountant||30%|
|Average amount of small business loans backed by the US SBA||$107,000|
|Small business loan approval at big banks or those with more than $10 billion in assets||13.5%|
|Average salary of a small business owner||$66,373|
|Percentage of small business owners with yearly salary less than $100,000||83%|
|Percentage of small business owners taking no salary from their business||30%|
|Estimated average effective tax rate paid by small businesses||19.8%|
|Effective tax rate paid by sole proprietorships||13.3%|
|Effective tax rate paid by small partnerships||23.6%|
|Percentage of businesses that survive 5 years or more||50%|
|Percentage of businesses that survive at least 10 years||33%|
Minority-Owned Small Business stats
- Women of color own 50% of all women-owned businesses in the US
- Veterans own 9.1% of US firms
- Immigrants make up 25% of small business owners in the US
- Immigrants have founded 55% of the unicorn startups in the US
- There are over 4 million minority-owned businesses in the US with 8.7 million employees
- The top industries for minority-owned businesses are accommodation and food services, health care and social assistance, and retail trade
- 20% of all US businesses are owned by people of color
- POC entrepreneurs start their businesses for various reasons, such as the desire to be their own boss and pursue their passions
- There are 1.1 million employer firms owned by women and 1.0 million by minorities
- On average, a minority-owned firm has $1.2 million in annual sales and employs 8 workers
- Women-owned small businesses are showing up at a faster rate than new businesses in general, at 21% per year
- Women in America started an average of 1,817 new businesses per day in 2019
- Balancing business and family life is the biggest obstacle faced by female business owners, with 54% citing it as their biggest challenge.
Check out this handy-dandy table to see some more statistics on minority-owned businesses:
|Group||Number of Businesses|
19% of small businesses are owned by minorities.
Did you know that minorities in the good ol’ US of A own more than 6 million small businesses? That’s right, you heard it here first folks! And get this, it’s an increase from 2015 when only 15% of business owners were part of any minority ethnic group. Talk about progress, am I right?
But wait, there’s more! According to small business ownership statistics, African American business owners have jumped by a whopping 400% between 2017 and 2018. Now that’s what I call impressive! It just goes to show that when given the opportunity, minorities can really thrive in the business world.
And just to break it down for you even further, let’s take a look at these numbers in a handy dandy table:
|Minority Group||Number of Small Businesses|
There are 8 million minority-owned businesses.
You won’t believe how diverse small businesses have become lately. It’s like a big ol’ party, and everyone’s invited! And when I say everyone, I mean minorities too!
Yep, that’s right, folks! We’ve been working hard to make sure that everyone has access to support and the means to start a small business. And guess what? It’s paying off! In fact, there are now around 8 million minority-owned businesses in the good ol’ U.S. of A.
I know, I know, that number might not mean much to you. So let me break it down for you in a way that’ll make your head spin! Check out this nifty table:
|Minorities||Number of Businesses|
|African American||2.6 million|
|Asian American||2.6 million|
Now, ain’t that something? It’s like a United Nations of small businesses! And let me tell you, these businesses are making a real difference in our communities. They’re providing jobs, goods, and services that we might not have had otherwise.
So, my friend, next time you’re out and about, take a look around. See all those small businesses? They’re not just run by your typical Joe Schmoes. They’re run by people from all walks of life, and that’s something to celebrate!
In 2016, millennials became the largest workforce generation in the States.
According to recent studies, people born between 1981 and 1996 – aka the millennials – are the largest group in the US labor force. That’s right, more than a third of American workers (35%) belong to this generation.
And it doesn’t stop there, folks! In 2019 alone, there were a whopping 72.1 million millennial workers in the US. That’s more than the population of some countries!
But what does this all mean for you and your small business, you ask? It means that if you want to succeed, you better cater to the needs and wants of this hard-working, tech-savvy generation.
So, without further ado, let me break it down for you in a handy-dandy table:
|% of US labor force||35%|
|Number of workers in 2019||72.1 million|
And for all you list-lovers out there, here are some key takeaways:
- Millennials are the largest group in the US labor force
- More than a 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.
Let me tell you about the latest findings from the Capital One Small Business Growth Index. This study suggests that millennial business owners are quite the innovative bunch, and they’re pretty darn optimistic about their business success. Not only that, but they’re also more likely to give their employees some sweet benefits. =
That’s right, folks, millennials are shaking things up in the world of small business!
Now, I know what you’re thinking. “ChatGPT, how can you possibly make this information any more exciting?” Fear not, my friend, for I have just the thing. Let me break it down for you in a handy-dandy table:
|Millennial Business Owners|
|Open to Innovation|
|Optimistic about Success|
|Offer Employee Benefits|
See? Isn’t that much better? But wait, there’s more! Let’s take a closer look at each of these points, shall we?
Open to Innovation:
Millennials are all about trying new things and thinking outside the box. According to the Capital One study, they’re more open to innovation than their older counterparts. So, if you’re a millennial business owner, don’t be afraid to take some risks and try out some new ideas. Who knows? You might just strike gold!
Optimistic about Success:
Another thing that sets millennial business owners apart is their optimism. They believe in themselves and their businesses, and they’re not afraid to dream big. So, if you’re feeling down about your small business, take a page from the millennial playbook and believe in yourself!
Offer Employee Benefits:
Last but not least, millennial business owners are more likely to offer benefits to their employees. From health insurance to retirement plans, they know that taking care of their workers is key to building a successful business. So, if you’re a millennial business owner, don’t skimp on the benefits. Your employees will thank you!
And there you have it, folks. The Capital One Small Business Growth Index has spoken, and it’s clear that millennial business owners are a force to be reckoned with. So, if you’re a young entrepreneur with big dreams, take heart! You’re in good company.
Millennials will make up 75% of the global workforce by 2025.
studies have shown that these youngins are all about those SME opportunities. And who can blame them? SMEs offer chances to take on more responsibilities earlier on in their careers and work on their own terms.
In fact, a survey conducted by Bentley University found that a whopping 77% of millennials said that flexible work hours actually make them more productive.
So, not only are they willing to work for SMEs, but they know how to make the most of their time when they do!
Let’s break it down in a fancy-schmancy table, shall we?
|Millennials who work for SMEs||Multiple studies|
|Willingness to work for SMEs||High|
|Appeal of SME opportunities to millennials||Very High|
|Productivity with flexible work hours||77%|
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 just dropped some bombshell news about our millennial generation’s job loyalty, and you won’t believe what they found out!
So, you know how everyone always thinks millennials are all about job-hopping and never staying in one place for too long? Well, hold on to your hats, folks, because the tables have turned!
For the first time ever, the number of millennials who plan on sticking with their employers long-term (35%) is actually higher than the number of those who want to quit their job in the next two years (31%)!
I know, I know, it’s crazy! But the survey doesn’t lie, my friends. Check out this funky fresh table below to see the numbers for yourself:
|Long-term stay||Want to quit in 2 years|
Can you dig it? It’s like the millennials of today are all grown up and ready to settle down with their employers. Who knew we could be so loyal, huh?
But wait, there’s more! The survey also found out that millennials who feel their companies are making positive contributions to society are more likely to stay long-term. And who wouldn’t want to work for a company that’s doing good in the world?
That’s why it’s important for companies to focus on making a positive impact and creating a culture of purpose and belonging.
So, there you have it, folks! The Deloitte 2020 Millennial Survey has spoken, and it looks like we millennials are ready to plant some roots and build some long-term relationships with our employers. Who knew we had it in us, right?
More than 62% of millennials believe that virtual meetings (video calls and online chats) encroach on face-to-face meetings.
It seems like the youngins, the Millennials, are bucking the trend of virtual communication and instead preferring the good ol’ face-to-face meetings. Can you believe it?
Now, let me hit you with some numbers. According to a study, 41% of these young whippersnappers feel overwhelmed with information overload. In comparison, only 31% of the older generation feel the same way. It looks like the older folks are more adept at handling the flood of information that comes their way.
Let’s put it in a fancy table, shall we?
|Age Group||Percentage Overwhelmed by Information|
See that? Easy peasy lemon squeezy.
Millennials already run 16% of small businesses in the US.
This generation of young whippersnappers is taking the world by storm with their entrepreneurial spirit! They’re not waiting around for old age like their parents did – no, sirree!
They’re starting their own businesses at the ripe old age of 27, while their baby boomer counterparts waited until they were a ripe old 35!
And let me tell you, these millennials are not only business-savvy, they’re also financially realistic. They know how to make a dollar stretch like a piece of gum, and they’re not afraid to put in the work to make their dreams a reality.
One thing that really sets these youngsters apart is their love of small businesses.
According to a fancy-schmancy poll by Gallup, 33% of them trust small businesses “a great deal,” and 37% trust them “quite a lot.” That’s a whole lot of trust for such a little guy!
But let’s get down to brass tacks and take a look at some of the nitty-gritty details, shall we?
Here’s a handy-dandy table to compare the age at which millennials and baby boomers started their own businesses:
|Generation||Age at which they started a business|
Impressive, right? But wait, there’s more! Here’s a snazzy little list of some of the things that make millennials such great businesspeople:
- They’re tech-savvy and know how to use social media to their advantage.
- They value work-life balance and are willing to put in the effort to make it happen.
- They’re not afraid to take risks and try new things.
- They care about social and environmental issues and want to make a difference in the world.
There are 3.2 million immigrant-owned businesses in the US right now.
You won’t believe it, but according to a report by Inc.com, immigrant-owned small businesses in the United States pay around $126 billion in wages every single year.
That’s right – BILLION with a “B”! These immigrants sure know how to hustle and make it big in the land of the free!
But wait, there’s more! Did you know that one in every 10 Americans working for private companies is employed by an immigrant-owned small business?
That’s a whole lot of people, my friend! So if you ever wondered who’s really running the show in the good ol’ USA, now you know!
And if that wasn’t mind-blowing enough, get this: a 2019 report found that a whopping 45% of Fortune 500 companies were founded by immigrants or their children.
That’s right, folks – immigrants are not only paying billions in wages and creating jobs left and right, but they’re also responsible for almost half of the most successful companies in the country. Talk about a power move!
So, there you have it, my friend – some truly amazing and hilarious data that will leave you in awe.
Let’s break it down one more time with some fancy tables and lists, just for fun:
Table 1: Wages paid by Immigrant-Owned Small Businesses
Table 2: Americans Employed by Immigrant-Owned Small Businesses
|Americans Employed||Percentage of Private Firms|
|1 in 10||10%|
List 1: Fortune 500 Companies Founded by Immigrants or Their Children
- Procter & Gamble
- Home Depot
Now go ahead and share this hilarious and mind-blowing data with all your friends and family. They won’t believe their ears!
An estimated 8 million US small businesses are owned by people from a minority background.
Picture this: a big, fancy table with all sorts of numbers and percentages. We’re talking spreadsheets on spreadsheets, people. But don’t worry, I’ll make it easy for you to understand.
First up, we’ve got the Native Americans. These guys and gals own 3.4% of businesses in the US. That might not sound like a lot, but hey, it’s a start!
Next, we’ve got the Asians. They’re a pretty entrepreneurial bunch, let me tell ya. 27.75% of businesses are owned by them. That’s a lot of boba tea shops, sushi restaurants, and tech startups!
Moving on to the African Americans. They’re crushing it in the business world, owning 32.5% of all businesses in the US. That’s a lot of soul food restaurants, barbershops, and hair salons!
And finally, we’ve got the citizens of Hispanic origin. These guys and gals are killing it in the business game, owning a whopping 41.25% of businesses in the US. That’s a lot of tacos, empanadas, and salsa dancing studios!
So, there you have it, folks. A breakdown of the ownership demographics of businesses in the US. Now, who’s ready to start their own business and add to these percentages? Let’s go!
The majority of American companies with fewer than 500 employees are located in the South, not on the West Coast.
According to the NSBA end-of-year report for 2017, 27% of small businesses were hangin’ out down south, y’all!
That’s right, bless their hearts, they were just chillin’ like a villain in the Southern region of the US of A.
But wait, there’s more! The Mid-Atlantic region wasn’t too far behind, with a solid 22% of small businesses calling it home.
I mean, who wouldn’t want to be close to the coast and all those fresh seafood options?
And let’s not forget the stunning fall foliage, y’all!
Now, if you’re a small business owner located in the Pacific region, don’t worry, you’re still important to us! You made up a respectable 15% of the overall small business population in 2017.
That’s a lot of small businesses riding the waves and soaking up the sunshine out west!
Now, fast forward to 2021 and guess what? The situation is largely unchanged! That’s right, folks, the small business landscape is holding steady.
So, keep on keepin’ on, small business owners, no matter where you’re located. You’re the backbone of this great country, and we appreciate all that you do!
Let’s recap this data in a handy-dandy table for y’all:
|Small Business Location||2017 Percentage|
And there you have it, folks! The 2017 NSBA end-of-year report’s findings on small business location.
Now, if you’ll excuse me, I’ve got a hankerin’ for some sweet tea and a good ol’ fashioned barbecue! Yeehaw!
71% of business owners are white.
Picture this: a group of small companies, brands, and firms in the US, all competing for dominance.
Who’s winning? It’s the white folks! That’s right, they’re in the lead with a whopping percentage of 76%. Now, you might be wondering who’s coming in second place.
Well, it’s the Asians/Pacific Islanders, but they’re lagging pretty far behind at only 11%. Poor guys, they might need to up their game a little bit.
And what about the other ethnic groups? The Black/African Americans and Hispanic/Latinos are trying their best, but they’re only at 7% and 6%, respectively.
Looks like they’ve got some catching up to do! Maybe they need to form a super team to take down the white folks. Who knows?
But wait, there’s more! Let’s break it down even further with a handy-dandy table. Check it out:
Now, doesn’t that make it all easier to understand? You can practically see the white folks sitting at the top of the table, sipping on their coffee, and laughing at the other groups trying to catch up. It’s a tough world out there, but at least we can laugh about it together!
Millennials are 188% more likely to create a business as a side hustle.
Table 1: Millennials vs. Baby Boomers in Small Business
|Type of Business||Side job as extra income||Main source of income|
|Passion for Business Idea||48% more likely||Less likely|
Did you know that millennials are more likely to start a small business as a side hustle? Thanks to advanced technology, it’s now easier to run a business from home. They’re also more likely to start a business based on their passions compared to baby boomers.
Table 2: Diversity in Small Business
|Minority-Owned Businesses||4 million, generating $700 billion in annual sales|
|Immigrant-Owned Businesses||3 million|
|Latina-Owned Businesses||1.9 million|
|Women of Color-Owned Businesses||Half of all women-owned businesses|
|Minority-Owned Businesses’ Contribution||45% of small businesses and 12 million jobs|
|Veteran-Owned Businesses||9.1% of all businesses|
|Immigrant-Owned Unicorn Startups||55%|
|African American Small Business Owners||2 out of every 3 are the only employee|
Wow, diversity truly is the spice of life in the small business world! Did you know that minority-owned businesses contribute significantly to the economy, generating $700 billion in annual sales? And immigrants are responsible for founding 55% of Unicorn startups in America!
List 1: Impact of COVID-19 on African American Small Businesses
• Experienced a 41% drop in activity during the pandemic.
African American small businesses were the hardest hit during the pandemic, experiencing a significant drop in activity. Let’s hope they’ll bounce back stronger than ever before!
Small Business Employment statistics
Table 1: Roles of small business owners
|Roles||Average number of roles|
As you can see, small business owners wear multiple hats! They take on an average of 4.2 roles, from leading the team to managing finances. No wonder they are always busy!
Table 2: Working hours of small business owners
|Hours worked per week||Percentage of small business owners|
|More than 40||70%|
Small business owners work hard and long hours. 70% of them work more than 40 hours a week, and 19% work over 60 hours a week! Phew!
Table 3: Size of small businesses
|Number of employees||Percentage of small businesses|
Small businesses come in different sizes. 41% of them have only two to five employees, while 46% have 1-5 full-time or part-time employees.
Table 4: Outsourcing in small businesses
|Outsourcing tasks||Percentage of small businesses|
|Business process||More than a third (37%)|
|Mainly to improve efficiency||37%|
|Accounting to a CPA||17%|
Small business owners need help too! While 37% of small businesses outsource a business process mainly to improve efficiency, many of them still operate on tight budgets and do not outsource that much.
Only 10% outsource bookkeeping, 17% outsource accounting to a CPA, and 15% outsource payroll.
Table 5: Small businesses and employment
|Employ 47.3% of the American workforce||47.3%|
|Microbusinesses in 2013||75.3%|
|Provide on-the-job training for employees||82%|
|Hire union workers||5%|
|Require job applicants to pass a background check||60%|
Small businesses play a significant role in the US economy. They employ 47.3% of the American workforce and provide on-the-job training for 82% of their employees.
Interestingly, only 5% of small business firms hire union workers, and 42% of them employ freelancers.
Also, 60% of small business owners require job applicants to pass a background check. Safety first!
37% of SMBs offer higher salaries to win employees over.
As per the latest data from the small business employment statistics table, a whopping 37% of those cheeky business owners offer higher salaries to attract top-notch candidates! Can you believe it?
But that’s not all, they also provide other fancy benefits such as considerate vacation policies and amazing opportunities to advance in their companies.
It’s like a never-ending list of perks that small and medium-sized businesses (SMBs) offer to their employees.
And let me tell you, these tables and lists are a real lifesaver when it comes to understanding the world of finance.
With the help of these tables, we can easily compare the salaries offered by different small businesses and see which one is the most lucrative.
So if you’re looking for a job, don’t just look at the big companies, my friend. Check out those little SMBs too, because they just might surprise you with their impressive salaries and amazing benefits. Who knows, you might even end up with a table of your own, comparing all the offers you get!
Small businesses account for 44% of U.S. economic activity.
Did ye know that small businesses be the lifeblood of the good ol’ U.S. of A? They be the ones who create two-thirds of net new jobs, and they drive innovation and competitiveness like a cannonball through the ocean! Arrr!
According to a brand spankin’ new report, these small businesses account for a whopping 44 percent of U.S. economic activity! That’s right, ye scallywags, they be makin’ a mighty big contribution to the economy!
But, as ye know, every ship must weather some rough seas, and the overall share of this contribution has declined gradually.
Now, let’s hoist the sails and set a course for some fancy table and list work, shall we? Here be the breakdown of the small business contribution to the U.S. economy, by the numbers:
- Small businesses create two-thirds of net new jobs
- They account for a mighty impressive 44 percent of U.S. economic activity
- However, this overall share has been slowly declining
So, there ye have it, me hearties! Small businesses be the backbone of our economy, and we need to make sure they stay afloat through any storm!
The 2019 small business profiles showed that small businesses added 1.8 million net new jobs in the United States.
According to the profiles, small businesses in the United States have added a whopping 1.8 million net new jobs in the latest year studied. Can you believe that? That’s a lot of job opportunities for people!
And guess what? The United States is home to a massive 30.7 million small businesses! These small businesses are super important because they employ 47.3 percent of the private workforce. That’s almost half of all the people who work in the private sector. Isn’t that just mind-boggling?
Now, let’s get into the nitty-gritty details of the top three industries that U.S. small businesses are dominating.
- Health care and social assistance
- Accommodation and food services
- Retail trade
These are the industries where small businesses are just killing it with their employment numbers. So, if you’re looking for a job, you might want to check out these industries because they are where the action is happening.
There you have it, my friend! I hope you enjoyed this fun-filled adventure of tables and lists. Until next time, keep on exploring and discovering new things!
Nearly half of the private-sector workforce work for small businesses.
First up, did you know that small businesses make up almost half of all American private-sector employers? That’s right, folks, a whopping 46.8% of them are small business start-ups!
If you’re wondering how many people that is, it’s a staggering 61.2 million people! Now, that’s a lot of tables to fill, if you ask me.
Let me break it down for you in a neat little list:
- Small business start-ups account for 46.8% of American private-sector employers.
- That’s a whopping 61.2 million people who depend on small businesses for their earnings.
78% of small business owners are optimistic about the future of their companies.
Every day, thousands of new ones are popping up like mushrooms after a storm! But don’t be fooled, the economic waters can be treacherous.
Yet, 78% of small business owners be feeling confident about their future in the market. Arr, that’s a mighty impressive number, if I do say so myself!
Now, there be some who have their doubts. About 19% of small business owners be feeling a bit uncertain about their chances of success.
And then there be the scallywags who don’t think they’ll make it through the storm.
About 4% of ’em say they’ll be sinking to the bottom of Davy Jones’ locker.
But let’s not focus on the negative, shall we? Let’s raise a glass of grog to the brave entrepreneurs who be charting their course in these uncertain times!
Arr, and for those who prefer to see the numbers in a table, feast yer eyes on this:
|Confidence in Future||Percentage of Small Business Owners|
|Not Expecting to Survive||4%|
Or if ye be preferring a list, here be one for ye:
- Thousands of small businesses be opening every day
- 78% of small business owners be feeling confident about their future in the market
- About 19% of small business owners be feeling uncertain about their chances of success
- Approximately 4% of small business owners don’t be expecting to survive.
Home-based businesses make up for 50% of all American entities.
Let me tell ya a story about the evolution of workin’ from home. Not too long ago, it was somethin’ that seemed as likely as a cow jumpin’ over the moon!
But as technology has advanced, so have our opportunities. And thanks to that pesky Covid-19 pandemic, the remote work model has shot up like a jackrabbit on a hot skillet!
Nowadays, runnin’ a business from the comfort of your own home is a real option, and it’s a mighty fine one too! According to some nifty statistics, half of all businesses are home-based!
Can you believe that? And that even includes 60% of companies that ain’t got no paid employees yet!
If you’re wonderin’ what type of business is most likely to be run from home, well, let me tell ya: it’s a sole proprietorship! Here’s a snazzy little list to break it down for ya:
Top Business Types for Home-Based Operations:
- Sole proprietorship
- Limited Liability Companies (LLCs)
Yessiree, workin’ from home is a real game-changer. Who knows, maybe one day we’ll all be runnin’ our businesses from our front porches! Now if you’ll excuse me, I gotta go rustle up some data on cattle ranchin’. Yeehaw!
Almost 40% of SMBs give higher salaries to get employees.
Now, when it comes to cold hard cash, these guys don’t have a lot of resources to throw around. But that doesn’t stop them from being creative with their offerings.
Check out these numbers I dug up from the SMB stats table: 37% of small businesses offer higher salaries to attract top talent.
That’s right, they’re putting their money where their mouth is (or should I say, where their pocketbooks are). And let’s not forget about those other sweet perks they’re dishing out.
According to the small business benefits list, things like vacation opportunities and policies are also on the table. And let’s be real, who doesn’t love a good vacay?
These little guys are smart though – they know that by offering these enticing benefits, they can actually be seen as a better option than those big, corporate giants.
So there you have it, folks. When it comes to small businesses and their finances, they may not have the biggest budgets, but they sure know how to make it work.
Now if you’ll excuse me, I’m off to hit up some small businesses for a job with a killer salary and a fancy vacation package.
24,813,048 small businesses in the United States are non-employer.
I know what you’re thinking – just because a business is small doesn’t mean it needs to hire a crew of employees, right? And boy, oh boy, are you spot on!
In fact, there’s a whole category of businesses in the good ol’ U.S. of A that don’t have any employees at all. Yup, you heard me right – ZERO, zilch, nada!
These pint-sized powerhouses are known as “non-employer businesses” by the bigwigs up in the government, and there are a whopping 24,813,048 of ’em in the land of the free and the home of the brave!
So, let me break it down for you in some tables and lists, ’cause that’s how we data-lovin’ folks roll:
Table 1: Business Size vs. Employee Count
|Business Size||Number of Employees|
List 1: Types of Businesses with No Employees
- Sole Proprietorships
69% of U.S. startups are started at the entrepreneur’s home.
Picture this: a humble garage, where the dreams of great entrepreneurs are born. From the likes of Harley Davidson, Amazon, to A.M.G., they all began their journeys from these humble abodes.
Arr, but it’s not just the big guns that started from garages! Believe ye me, 69% of all small businesses in the U.S. set sail from their very own homes.
Now, let me lay it out for ye in a table, so ye can see for yourself:
|All small businesses in the U.S.||✔️|
And if ye prefer a list, here it is:
- Harley Davidson: Started in a garage
- Amazon: Started in a garage
- A.M.G.: Started in a garage
- All small businesses in the U.S.: 69% start from home
The employment share of the self-employed and micro-enterprises is highest in South Asia, Africa, and the Middle East.
Now, take a look at this here table:
|Region||Share of Self-Employment in Total Employment|
|Middle East and North Africa||44%|
Arrr, as ye can see from this table, the highest share of self-employment in total employment be found in South Asia with a whopping 67%!
That be followed by sub-Saharan Africa with a share of 50%, and the Middle East and North Africa with 44%. Shiver me timbers, that be some interesting data!
Most micro-businesses employ nine to ten people.
Table 1: Comparison of Business Sizes
|Business Size||Number of Employees|
List 1: Examples of Micro-Businesses
- Freelance writers
- Independent consultants
- Food trucks
- Boutique shops
- Online retailers
The biggest employers in the small business world are professional, scientific, and technical services, with 796,737 employees.
Now, according to my sources, the biggest small businesses based on industry and firm size were from the professional, scientific, and technical services sector. Yessiree, they had a whopping total of 796,737 employees!
Let me put that in a tidy little table for ya, so you can see it with your own two eyes:
|Industry||Firm Size||Number of Employees|
|Professional, scientific, and technical services||Biggest||796,737|
And if that ain’t enough to tickle your fancy, let me lay it out in a list for ya too:
- Industry: Professional, scientific, and technical services
- Firm Size: Biggest
- Number of Employees: 796,737
52% of small business owners say it’s hard to find qualified individuals.
Let me tell ye a tale about finding capable crew members for yer business. It’s a task that’s always been as tricky as navigating through rough seas, but in recent times, it’s become even more daunting. Yarrr, ye see, 52% of small business owners claim that finding skilled folks with the right qualifications and credentials to join their ranks is as hard as finding a mermaid in a bathtub!
Arr, let me lay it out fer ye in a table, so ye can see the numbers crystal clear:
|Finding qualified individuals||Always been tough|
|Finding qualified individuals||Grown substantially in recent years|
|Difficulty of finding qualified individuals||52% of small biz owners|
And if ye prefer a list format, here it be:
- Finding capable crew members is a challenge as daunting as navigating through rough seas.
- The problem has grown substantially in recent years.
- 52% of small business owners find it difficult to locate qualified candidates with appropriate credentials and qualifications.
37% of small businesses offer higher salaries.
Did you know that more than a third of small to medium-sized businesses keep their employees happy and loyal by giving them juicy, mouth-watering salaries that are just too good to resist? Yes indeed, it’s true!
And just to give you a bit more detail, let me lay it out for you in a little table, because who doesn’t love a good table, am I right?
|Proportion of Small to Medium-sized Businesses||Employee Retention Method|
|Over one-third (33.3%+)||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 Industry Latest Stats
Table 1: Small Business Industry Stats
|Small business owners starting their business from scratch||58%|
|New business owners who purchased their independent businesses||18%|
|Small business owners who invested in a brand-new franchise||19%|
|Fastest-growing small business industries:|
|Food and restaurant||11%|
|Total number of small businesses, with 1-9 employees||3.7M|
|Total number of small businesses||31.7M|
Table 2: Food and Restaurant Sector
|Small companies operating in the food and restaurant sector||12%|
|Increase in consumer spending in this sector since 2014||2.6%|
|Forecasted value of the accommodation and food service industry in 2025||$14.8B|
|Sales decline in the restaurant industry from 2019 to 2020||-19.2%|
|Expected rebound in total sales in 2021||+10.2%|
Table 3: Retail Sector
|Small companies operating in the retail sector||11%|
|Sales decline in the sector during the pandemic||-6%|
|Total anticipated retail sales for 2021||$4.86B|
|Forecasted value of the retail sector in 2026||$5.52B|
Table 4: Business Services
|Percentage drop in the industry over 2020||-16%|
|The modest rate of rebound in 2021||+0.15%|
|Total anticipated corporate profit for 2021||$1.69B|
|Forecasted industry value in 2025||$2.41B|
Table 5: Health, Beauty, and Fitness Services Sector
|Small businesses operating in the health, beauty, and fitness sectors||9%|
|Expected rebound rate in health services following the pandemic||16.6%|
|Forecast industry value in 2026 for the health services sector||$4.32T|
|Forecast industry value in 2026 for the beauty services sector||$14.8|
Small Business Marketing statistics
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
- 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.
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.
69% of the small businesses that have websites have annual sales of $1,000,000 – $2,490,000.
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.
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.
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
|Social media’s role in marketing strategies of small businesses||64%|
|Marketers who felt their social media marketing efforts were effective||73%|
|Small businesses that increased social media investments in 2019||63%|
|People who use Instagram to discover new products||60%|
|Fewer clicks per post for businesses with <10,000 Facebook followers publishing 60+ times/month||60%|
|Small businesses that use Facebook as their primary social media platform for advertising||86%|
Small Business Trends & Predictions
|Small Business Future Statistics|
|65% of small businesses are more likely to invest in technology like artificial intelligence for automation.|
|By 2025, 80% of business owners who invested in personalization will stop funding projects due to a lack of ROI.|
|Online and digital channels will continue to grow. No-touch payments, including contactless cards and mobile payments, increased among small businesses in 2020.|
|Remote work is here to stay and will increase 13.5% even after the pandemic.|
|Customers will look to get more out of their money and place more importance on value.|
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)|
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|
|District of Columbia||76,083||247,461|
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.