Scary (But True) Small Business Statistics You Can’t Afford To Ignore
If you’re getting ready to start your own business, knowing these small business marketing statistics will help you know what you are getting yourself into, help you plan ahead and help you grow your business.
According to the US Small Business Administration, there are nearly 30 million small businesses in the United States employing 47.8 percent of US workers. These businesses have a big impact on the US economy through job creation and innovation.
The first part of this article includes recent market studies and small business statistics. This will provide you with an idea of what the current small business landscape looks like and help you decide on a future course of action.
In the second part of the article, we’ll cover everything you need to know to get started with digital marketing. The internet, combined with the wide use of mobile devices, has changed the small business landscape. It’s important to learn how to navigate this new terrain so that your business stays ahead of the pack.
Table of Contents
Small Businesses in the United States
General Small Business Statistics
Financing
Income
Survival
Small Businesses and the Internet
Digital User Experience
E-commerce and Online Shopping
Cybersecurity and Small Businesses
Digital Marketing and Small Businesses
Conclusion
The fast pace of technological change will continue to transform the world of work. Some analysts predict that half of the workforce to be freelancers by 2020. Increasing numbers of professionals desire control over their employment, and this is contributing to freelance and small business growth.
Practical Small Business Statistics for Your Company
The Small Business Administration defines a small business as a firm with fewer than 500 employees.
In Australia, any business that has fewer than 20 employees is considered a small business, according to the Australian Bureau of Statistics. In the European Union, it’s under 50, and in America it’s under 500. The numbers vary across the world, but the definition is the same—it’s any business with fewer employees and revenue than the average corporation.
There are 30.2 million small businesses in the U.S.A.
According to the US Census Bureau, in 2017, small businesses employed 47.5% of the entire country’s workforce. That number keeps rising by the day. Given that it can take as few as six days to file the paperwork and open up your own company in America, it’s no wonder people are eager to jump at the opportunity. If you’re thinking of starting your own venture, bear in mind that you’ll be facing stiff competition from all sides.
Small businesses account for 99.9% of all firms in the US.
Small business stats show that the majority of businesses in America have fewer than 500 employees. Firms with fewer than 100 employees account for 98.2%, and those with fewer than 20 employees account for 89%.
Micro businesses account for 75.3% of private-sector employers.
A micro enterprise employs nine people or fewer, and this is the most common kind of private-sector business in the U.S. Small business statistics show that while this might be the most common kind of enterprise, its share of employees is very small, providing only 10.5% of all private-sector jobs.
Analysts predict that half of the workforce will be freelancers by 2020.
A lot of small businesses hire full-time workers even when they don’t have enough work to make it worthwhile. Freelancers are usually a much better investment, especially for a company that’s just starting out and can’t find the resources to pay full-time employees. Luckily, the number of freelancers is on the rise, which gives small companies a great opportunity to find professionals at an affordable price.
19% of small business owners work over 60 hours a week.
Small business statistics indicate that most owners work hard to make their company succeed, particularly when they’re just starting out. Indeed, it’s not uncommon for bosses to work 60-hour weeks. Stats show a whopping 89% have a habit of working weekends, while 81% work nights.
50% of all small businesses are operated from home.
Given that 290 million people in the U.S.A. have access to the internet, it’s a lot easier to work from the comfort of your own home. This is especially true for sole proprietorships where owners don’t have to worry about finding space for multiple employees. However, one of the challenges of home-based businesses is running an effective marketing campaign, so owners need to be organized and advertising-savvy if they want to build a good customer base.
Small businesses employ 59 million people in the U.S.A.
US economy statistics show us that small businesses have always been an important part of both our culture and our success. They contribute to the local economy by bringing stability, jobs, and financial growth, and they can offer a more diverse inventory or specialize in unique services. Whether they remain small or grow into large corporations, these kinds of companies also contribute to the government’s budget through taxes.
Minority-Owned Businesses
The majority of entrepreneurs in the US (64%) are white.
14% are African-Americans, while 8% are Latino/Hispanic. Additionally, minority-owned business statistics for 2018 show the rates are a lot more stable among whites and least stable among African-Americans. This piece of information could signify that the white ethnicity is still privileged.
61% of baby boomers say they would work through retirement by choice.
45% of millennials would do the same, as would 47% of employees who belong to gen X. Although it would appear that baby-boomers seem to be more into working post-retirement, the truth is their opinion might be affected by the fact they’re either already retired or very nearly so. These startup statistics in 2018 numbers will undoubtedly change once gen X employees get closer to retirement.
For every 10 male entrepreneurs, there are seven female entrepreneurs.
Around the world, there are 10 male entrepreneurs for every seven female entrepreneurs. However, in six countries, this discrepancy has been all but ironed out, with women and men starting their own businesses at the same rate. These six countries are Indonesia, Thailand, Panama, Qatar, Madagascar, and Angola.
There are 8 million minority-owned businesses in the US.
That being said, minority-owned businesses seem to hire fewer employees. In general, they have slightly over eight employees, while non-minority owners hire more than 11 workers on average. The percentage of entrepreneurs in America shows us there’s a substantial difference between men and women entrepreneurs. Male owners hire more than 12 employees on average, while female entrepreneurs hire slightly over eight people.
Data from 2017 tells us there are an estimated 11.9 million small businesses in the US owned by women.
These companies provide jobs for 9 million people and generate around 800.7 trillion in total. Over the course of 20 years, the number of female entrepreneurs has grown by 114%, which dramatically beats the total businesses growth rate of 44%. Furthermore, startup statistics show women-owned businesses make up 39% of all US companies.
Minorities accounted for 46% of women-owned businesses in the US in 2017.
There are around 5.5 million businesses owned by women who belong to minority groups. These enterprises employ more than 2.1 million people and generate $361 billion in revenue. African-American women make up 19% of the total women-owned businesses, Latinas own 17%, and Asian-American women own 9%.
It depends on what you mean when you say successful. Entrepreneurship statistics show one third of all companies manage to get through their 10th year, which can be considered quite a success. The large majority of successful entrepreneurs are actually middle-aged men who have been in the industry for quite some time.
Only 20% of small businesses close during their first year. Around half of all companies survive for at least five years, while a third of companies last for 10 years. This might seem like a scary piece of information, but the fact remains that 80% of enterprises survive through their first year.
According to entrepreneur statistics, 70% of entrepreneurs went to college, but nearly a third didn’t. However, when it comes to business-related education, 17% have a Bachelor’s Degree, 18% have a Master’s Degree, and 4% have a PhD in business. Although it’s far from attending college, 32% of business owners said they’d taken at least a couple of business classes.
Sources:
https://digital.com/small-business-statistics/
https://www.smallbizgenius.net/by-the-numbers/small-business-statistics/
https://www.smallbizgenius.net/by-the-numbers/entrepreneur-statistics/