Are you thinking of opening your own business? If so, remember that being your boss can have risks and challenges despite being a thrilling and satisfactory experience. However, once you succeed, you realize that the obstacles and countless hours of hard work were all worth it in the end.
Especially after the adverse effects of the pandemic, leaping into entrepreneurship comes with even more struggles. Yet, starting a flourishing business in 2023 is possible.
We have compiled a list of the most insightful entrepreneurship statistics to provide you with a better understanding of how to be a successful entrepreneur during these troubling times.
Fascinating Entrepreneurship Stats (Editor’s Pick)
- There are 582 million entrepreneurs worldwide as of 2023.
- Nearly 5.1 million new businesses were launched in the U.S. in 2022.
- The US was the third country for entrepreneurship in 2022.
- There are 32.5 million small businesses in the US as of 2023.
- 27% of US billionaires are self-made.
- There are 3 million Black-owned businesses in the US.
- About 42% of US entrepreneurs are women.
- America has about 724 billionaires as of 2023.
- States with the most women-owned employer firms are Hawaii, Virginia, and Colorado.
General Entrepreneurship Statistics
1. There are 582 million entrepreneurs worldwide as of 2023.
Though entrepreneurship spreads worldwide like wildfire, many business owners gravitate more toward specific countries. Good infrastructures are one of the main reasons entrepreneurs favor a particular area of the world over another.
Currently, how many entrepreneurs are in the world? The Global Entrepreneurship Monitor surveyed 65 global economies and concluded that 582 million people own a business or are starting a new one.
This enormous percentage of entrepreneurs in the world shows nearly 90% of entrepreneurs are self-made; thus, entrepreneurship has become the most common alternative for workers who want to be their bosses.
2. Over 5 million new businesses were started in the U.S. in 2022.
With a 5.6% year-over-year increase, it’s unsurprising that the number of entrepreneurs in the US keeps expanding. Hence, 2022 counted the highest number of new companies in over two decades.
Despite the financial crisis during and after the pandemic, it is surprising that thousands of businesses are still coming up daily.
3. The US is the third country for entrepreneurship as of 2022.
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The Entrepreneurship sub-ranking calculates ranks based on average scores connected to different metrics. According to entrepreneurial statistics, the number of educated people, the skilled workforce, the country’s innovation rate, and technological expertise determine where it’s best to start your business.
The absolute best country for entrepreneurship is Germany, followed by Japan. The US places third, despite having the highest percentage of entrepreneurs globally.
4. 27% of US billionaires are self-made as of 2022.
Entrepreneur statistics 2023 reported that the US has a total number of 724 billionaires. Most of them achieved this status through inheritance. Data on entrepreneurs showed that about 27% of billionaires worked hard to gain that position.
5. Approximately 32.4 million businesses in U.S. are family-owned as of 2022.
(Family Business, Startups Anonymous)
Many advantages come with starting a business with a partner. So, what’s better than embarking on an entrepreneurial adventure with your family? On a global scale, about 18.7% of business owners work alongside at least one family member.
Statistics show that family-owned businesses employ about 60% of the US workforce and contribute more than half (57%) of the total US GDP.
According to entrepreneurship facts, family-based entrepreneurship accounts for one-third of all types of businesses in Colombia, the United Arab Emirates, and Uruguay. Especially in Latin American regions, family members play an essential role in starting this venture.
Entrepreneur Demographics for 2023.
6. About 42% of US entrepreneurs were women, while 58.5% were men in 2022.
It’s not shocking news that the majority of entrepreneurs are male. According to American Express female entrepreneurs statistics, 42% of all businesses in the U.S. are women-owned. Women-owned firms (WOB) are at least 51% owned, operated, and controlled by one or more females.
This is a significant victory for female entrepreneurship, as the percentage represents the highest year-over-year growth in the last decade.
Astonishing female entrepreneurship statistics by Global Entrepreneurship Monitor revealed that 274 million female entrepreneurs worldwide, with 30% of women-owned businesses in the wholesale and retail industries, while 20% are in the health, government, education, and social services sectors.
7. 46% of Gen X are entrepreneurs as of 2022.
If you dream of opening a new business, no rule prevents you from doing it at any age. Older generations constitute the highest number of entrepreneurs in the U.S.; Gen X accounts for 46% of the total companies, followed by boomers. Millennials and Gen Z only comprise 13% and 1% of entrepreneurs. The average age of successful entrepreneurs is around 45. 46% of small business entrepreneurs are between 41 and 56.
8. In 2022, about 46% of entrepreneurs don’t have a business degree.
Many entrepreneurs opened their own companies, fed up with the overwhelming pressure from their former bosses. But how many of them have a business education? Not as many as you would expect — only 9% of business owners have a bachelor’s degree in business. 46% don’t have a business degree, and another 32% just took some business classes. We can count a humble percentage of entrepreneurs worldwide (3%) with a master’s or a Ph.D. in that sector.
Entrepreneurs feel confident with their managing skills, regardless of their academic background.
9. The US has 3 million Black-owned businesses as of 2022.
According to the current data from the Census Bureau, over 3 million Black-owned businesses are in the U.S., with 140,918 being Black-owned employer firms.
According to entrepreneur stats, the figure is much more prominent than white-owned businesses (17%). Nevertheless, Black business owners are more likely to receive financial aid than whites.
10. In the US, about 67.1% of entrepreneurs are white.
Though companies owned by minorities are constantly on the rise, white people still own most firms. Global Entrepreneurship Monitor reported that more than 67% of American entrepreneurs are whites, 15.4% are Hispanic or Latino, 6.4% are Asians, and 6.3% of business owners are African-Americans.
The entrepreneur success rate is more steady among whites than people of color. This information proves there’s still a long way to go before achieving equality between ethnicities.
11. Japan, Germany, and US are the top 3 most entrepreneurial countries as of 2022.
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A skilled workforce, competitiveness, an open market, and easy access to capital are the main factors that make these countries the most chosen for entrepreneurship. The Global Entrepreneurship Index reported that Japan, Germany, and the US are among the most entrepreneurial countries, ranking first, second, and third, respectively.
U.K. positions fourth, South Korea fifth, Canada ranks sixth, and Switzerland seventh. Singapore, China, and Sweden complete the top 10 entrepreneurship rankings.
Entrepreneurship Statistics for 2023 on Small Businesses
12. 99% of businesses in the U.S. are small businesses as of 2022.
If you have ever considered opening a small business, the first question that crossed your mind was if you would regret this decision. You won’t regret it, and statistics are here to prove it — a shocking 92% out of 99% of entrepreneurs are satisfied with their choice.
Entrepreneurs acknowledge the benefits, responsibilities, and struggles of starting a new company. But they know for sure that all that hard work will be rewarding.
Additionally, entrepreneurship stats demonstrate that small businesses created the most employment in the US between 1993 and 2011. These numbers prove that small companies influence the country’s economy the most.
13. 16% of small businesses don’t hire any staff members as of 2023.
Many reasons can drive most small business owners to go solo instead of employing people to add to their team. Many company owners can’t find high-quality employees to cover those positions, so entrepreneurs prefer handling that amount of work alone. Moreover, exciting facts about entrepreneurs show that about 16% of business owners don’t have the financial capital to hire employees.
The report proves that 38% of businesses have two to five employees, while only 39% employ more than five people.
14. Small businesses account for 99.9% of all companies in the US.
How many small businesses are in the US? There are 33.2 million small businesses, constituting 99.9% of all companies in the country. This astonishing figure suggests that small businesses are crucial to the national economy.
In the battle of entrepreneur vs. small business owner, small businesses have more well-established products and customer bases than risky and innovative entrepreneurs. That’s one of the main reasons why small business ownership is way more popular than any other business form.
15. In 2022, about 55% of respondents start a business because they want to be their boss.
What leads business owners to jump on the entrepreneurship bandwagon? According to Guidant Financial, 55% of people agreed that their primary reason is being their boss. Entrepreneurship statistics state that 39% of respondents want to pursue their life goals, while others embrace entrepreneurship because they are dissatisfied with their former workplace or not ready to retire.
16. 8.7 million new jobs were created by Small businesses in the past three years.
Statistics from Small Business Administration (SBA) indicate that there are 33.2 million small businesses, constituting 99.9% of all companies in the U.S. This staggering figure implies that small businesses are crucial to the country’s economy as they provide enormous job opportunities and contribute 44% to the total GDP of the country.
17. About 47.7% of entrepreneurs started their businesses to be their own bosses.
About 47.7% of entrepreneurs of small businesses started their businesses to be independent and handle tasks based on their preferences without being answerable to anyone.
And based on their responses from the recent survey, they are satisfied with their choices, as 70% of entrepreneurs are working actively towards expanding their businesses, so there are no regrets. Unsurprisingly, about 97.7 said they would never return to traditional employment.
18. 20% of small businesses fail within the first year.
Entrepreneurship statistics 2023 worldwide reported that only 80% of small businesses managed to get through their first year. On average, about half of all companies survive more than five years, while only about a third reach the 10-year mark.
According to the entrepreneurship failure rate, about 20% of small businesses fail within their first year. The numbers only increase, and 38% of small businesses fail because they run out of cash.
19. 18% of businesses are in retail as of 2023
The U.S. entrepreneurship statistics show that 18% of small businesses operate a storefront or eCommerce store in the retail category. Other notable types of small businesses include food and restaurants (12%), construction and contracting (8%), health/beauty/fitness services (10%), and residential/commercial services (7%).
20. 65.3% of small businesses were profitable in 2022.
The entrepreneur success rate of small businesses shows that 65% of small companies operating were profitable in 2022. This is exciting news since a 2018 study showed just 40% of small businesses were thriving. Looking at the 25% increase from 2018 to 2022 will encourage upcoming entrepreneurs to try it.
Additional Entrepreneurship Facts in 2023
21. Nine out of ten startups end up failing.
Before starting a new business, consider that not all companies will succeed. Out of 5 million companies created every year, 90% of them are most likely to fail. The numbers make you meditate on the difficulty of being a successful business in a highly competitive market.
We can agree that the entrepreneurship failure rate primarily depends on the following reasons: 42% of startups fail because there’s no market need, 29% run out of cash, and 23% don’t have the right team members.
22. Around 26% of business owners use the internet for advice.
It’s only natural that most business owners might find the internet one of the most innovative tools for their companies, as it offers official data from local institutions. On an additional note, people can interact and help each other out with decision-making.
These fascinating statistics about entrepreneurs reveal that 19% of business owners turn to their colleagues for advice, while 14% use books to get answers. Just a tiny 11% of respondents first turn to family members.
23. 39% of entrepreneurs use cash to start their businesses.
Financing a business can be challenging, especially for new owners who have never taken this step. Most business owners (39%) use cash as financing. Rollovers for Business Start-ups (ROBS) is the second most used financing business form. US entrepreneurship statistics show that only 10% of entrepreneurs ask their parents and friends for financial aid, and 9% claim SBA loans.
24. 97.7% of US entrepreneurs want to avoid returning to a regular job.
Especially in the US, workers must abandon a secure 9-5 job and venture on the risky path of opening a business. More and more people aspire to become entrepreneurs because of freedom, flexibility in working hours, and management.
Data on entrepreneurs shows that about 70% of business owners constantly work actively to expand their company, suggesting they feel fulfilled with their choice.
Overall, a whopping percentage of entrepreneurs in America have no regrets.
What Can We Learn from These Entrepreneurship Statistics?
Before embarking on this new path, many entrepreneurs know that success is a matter of trial and error.
As we understood, businesses can give you plenty of benefits, yet unexpected challenges always knock on your door. For example, COVID-19 is the biggest challenge for almost all companies worldwide.
If you wish your business to succeed, be confident about your management skills, be passionate about your work, plan your strategies, and research your competitors.