It’s astonishing how many people dream about having their own company. This would serve as a fantastic opportunity to bypass somebody else’s rules, concepts, pressure, accompanying stress, and even burnout.
Considering that a growing number of people want to be in the driving seat, it’s no wonder that they decide to go on this journey. If you’re thinking about becoming a business owner, check out these impressive stats and facts.
1. Small businesses account for 99.9% of all US businesses.
Small businesses account for almost 100% of American companies. The whopping 30.7 million is the figure that shows how many small businesses in the US there were in 2019. It’s more than obvious that they are the driving force of job growth in the States.
Since a small business is defined as an organization that has up to 500 employees, small companies are not the only ones in this category. Nearly all prominent startups in the US are also classified as small businesses.
2. Small businesses create 64% of new jobs.
Small business employment statistics uncover astonishing figures. Small companies create around two-thirds of new job positions.
This percentage further shows that 1.5 million people got their jobs thanks to small businesses.
3. 550,000 new businesses are launched every month.
(Advance Point Capital)
On a yearly basis, this figure amounts to approximately 6.6 million. Unfortunately, not all companies make it in the long run, as the initial two years are vital for a business’s survival.
4. There were 30.7 million small businesses in 2019.
As the number of small businesses in the US by year reveals, 2019 has witnessed the highest number of small businesses so far — over 30 million. There has been a steady increase since 2017 and 2018 when there were 29.6 million and 30.2 million small businesses, respectively.
What’s more impressive about these companies is that they generate a whopping 1.5 million jobs annually.
5. For 55% of small business owners, the greatest motivation to start a company was to be their own boss.
Of the total percentage of small businesses in America, over 50% were started because their owners were motivated by the idea of being their own boss.
Likewise, 39% started their business because they wanted to follow their passion. Other reasons involve dissatisfaction with large firms and corporations and a lack of retirement preparation.
6. Launching a small business in America takes four days on average.
(The World Bank)
US small businesses statistics show that starting a small business in any state is relatively easy and straightforward. Namely, it takes four business days to launch a small business.
It’s not much of a surprise that, in the US, over 550,000 businesses are launched every month, amounting to 6.6 million on an annual basis.
7. Small businesses employ 58.9 million Americans.
(Advanced Point Capital)
Even though we’re talking about small businesses, the number of employees working in such companies is far from small. Namely, a little less than 60 million employees work in small companies. According to the SBA definition, a small business may have up to 500 workers.
However, the great majority of such companies (98.2%) have up to 100 employees. These figures further imply that almost all American workers are employed in one of the small companies across the US.
8. A small business has 10 employees on average.
(Small Business Trends)
The average number of employees in a small business is 10. This average is related to companies that have at least one employee. Small businesses typically have between one and 19 employees, and they account for the majority of small businesses with employees other than business owners.
Small businesses with more than 19 employees account for just a fraction of the overall number. They typically have between 20 and 499 employees. Figures that show how many employees there are in a small business go as follows:
- 5,305,960 small businesses have 1–19 workers
- 629,025 small businesses have 20–499 workers
9. 43% of cyberattacks are targeted at small businesses.
Cybersecurity mustn’t be taken lightly. Any company can become a victim of a cyberattack, regardless of its size, importance, or influence on society.
Big corporations have come to realize the danger of the online world, and they have taken measures to protect themselves. Unfortunately, the same can’t be said about small businesses.
Small business cybersecurity statistics show that small businesses frequently fall victim to cyberattacks. What’s more, 60% of hacked businesses shut down within only six months. The reason behind these shocking figures is that, unlike big corporations, small businesses can’t afford proper protection against cyberattacks.
10. Only 14% of small businesses manage to mitigate cyberattack risks effectively.
It’s no secret that efficient protection against cyberattacks can be rather costly. Therefore, small businesses don’t manage to take all the necessary steps. However, not all business owners take cybersecurity seriously, which explains why cybercriminals have been so successful.
So, if you are curious about how many small businesses in the US really manage to mitigate the risks of cyberattacks, the answer is only 14%.
11. 44% of small enterprise owners are 39–54 years old.
Not all people are ready to be entrepreneurs. Some are more daring and courageous, while others seem to fear the risk of failing. In terms of generations, Gen Xers and Baby boomers appear to be most audacious and confident to start a small business.
According to small business owners statistics, members of Generation X account for 44% of US small enterprises. Baby boomers (55 to 73 year-olds) are next in line at 41%, followed by Millennials (23 to 38 year-olds) at 12%. Only 2% of small business owners are 74 and older.
12. Millennials are 188% more likely to have a side business.
The younger the owner, the less afraid they are to engage in a side job. Statistics on small businesses reveal that new generations of business owners are quite prone to side-hustling.
On the other hand, our millennials in the workplace numbers show that this age group, along with Gen Z, Namely, is more likely to launch a side business than Baby boomers.
13. 27% of small business owners are women.
The number of female business owners increased by 4% year after year only to reach a figure of 27% in 2020, according to small business growth statistics.
Even though this growth is somewhat slow, it’s consistent. The number of women in small businesses has been rising steadily since 2017.
Men still make up the majority of small business owners (73%), which some may find a bit discouraging. But, what is undoubtedly shameful is the fact that women-owned businesses make 61% less than those owned by men.
In figures, female-owned companies make only $150,000 per year compared to $400,000 that male-owned businesses generate.
14. Only 8% of small business owners regret launching their companies.
Statistics on a small business show that a vast majority of business owners are happy with their decision to start a business. Only 8% of small business owners regret doing it, while 92% are satisfied with their choice.
15. 19% of small business owners work over 60 hours per week.
All business owners want their small business to be lucrative and prosperous, especially at the very beginning.
Therefore, it’s normal for some owners to work over 60 hours a week. What’s more, 89% of them work weekends, whereas 81% work at night.