Don’t fall for the glitz and glamor that pop culture sells you about entrepreneurship. Forget the “get rich quick” stories and the overnight successes. The life of an entrepreneur is unapologetically gritty, but it’s also where dreams take form. And since we’re all about cutting through the BS, let’s get into the cold, hard numbers that you really should know.
- The Small Business Landscape: 99.9% of American businesses are small.
- The Scale: There are 33,185,550 small businesses in the United States.
- Employment Power: Small businesses employ 61.7 million Americans, which equates to 46.4% of private sector employees.
- Job Creation: Since 1995, small businesses have pumped out 17.3 million net new jobs, making up 62.7% of net jobs created during this period.
- Payroll Impact: Small businesses are responsible for 39.4% of the private sector payroll.
- Global Reach: Small businesses contribute 32.6% of known export value.
- Tech Savvy: About 38% of small businesses are utilizing specialized software.
- General Motivation: 29% of entrepreneurs started their businesses to be their own boss.
- Cash Flow Concerns: 28% say cash flow will be their biggest upcoming challenge.
- Generational Shift: Millennials and Gen Zers are 188% more likely to aim for a side business compared to older generations.
- Year One Attrition: Over 20% of small businesses collapse in the first year.
- Five-Year Outlook: Almost 50% of small startups disintegrate within five years.
- Cash Crisis: 38% of small businesses crash due to running out of cash or failing to secure more of it.
- Market Need: 35% of new businesses fail because there’s no market demand. Research before you leap.
- Labor Quality: 52% of small business owners cite poor labor quality as a significant issue.
- Hiring Woes: For businesses with over 50 employees, 63% find it hard to get qualified hires.
- Social Media Utilization: 64% of small businesses employ social media for marketing.
- SMEs and Job Creation: Over 90% of the business population is made up of SMEs, and they’re the ones churning out a lot of jobs.
- Financial Struggles: 38% of businesses fail due to lack of financial support.
- Consumer Demand: A lack of it is the second biggest challenge for 28% of small business owners.
These numbers aren’t there to scare you; they’re there to prepare you. Know what problems might come up and get ready for them. Will money be tight? Plan for it. Is the market full of businesses like yours? Find a way to be different and attract demand. Worried about hiring the right people? Start thinking now about how to attract them.
Don’t let these stats freeze you up; let them guide you. They’re like a map showing where others have messed up so you can avoid the same traps. Remember, challenges are just chances to prove yourself. Take these stats, learn from them, and get ready to do something great. You’ve got this.
Sources:
https://blog.hubspot.com/sales/entrepreurship-stats
https://www.oberlo.com/blog/small-business-statistics
https://advocacy.sba.gov/2023/03/07/frequently-asked-questions-about-small-business-2023/
