35+ Key Small Business Statistics

6 months ago 63

Small businesses are the backbone of the American system (and successful galore parts of the world) and supply jobs for astir fractional (45.9%) of US employees.

Nearly 9-in-10 Americans authorities tiny businesses person a affirmative impact, whereas lone 29% of Americans presumption ample corporations positively.

Want to larn astir the authorities of tiny businesses, what is their relation successful today’s economy, however galore businesses neglect and what are the existent challenges?

Let’s dive close in.

Here’s a speedy summarily of what you’ll learn:

General Small Business Statistics

There are 33.27 cardinal tiny businesses (with little than 500 employees) successful the US (SBA)
Around 81.6% of tiny businesses successful the US person nary employees, which amounts to 27.15 cardinal businesses without employees (SBA)
Only 16.44% of tiny businesses successful the US person betwixt 1 and 19 employees (SBA)
There are 61.6 cardinal tiny concern employees, accounting for 45.9% of the US workforce (SBA)
There are 4.53 cardinal tiny businesses successful the professional, technological and method industry, accounting for 13.62% of each tiny businesses. It’s the lone manufacture with much than 4 cardinal tiny businesses. (SBA)
Small businesses successful the US generated $16.2 trillion successful gross successful 2021 (Pew Research Center)
Small firms successful the US exported goods worthy $546.1 billion, accounting for 34.9% of known export worth successful 2021 SBA)
From 1995 to 2021, tiny businesses person been liable for generating 17.3 cardinal nett caller jobs, making up 62.7% of each caller jobs created during this play (SBA)
Small concern owners superior motivations to spell into concern see “ready to beryllium their ain boss” (28%), dissatisfaction with firm America (23%) and “want to prosecute a passion” (14%) (Guidant)
Small businesses successful the US are liable for 43.5% of gross home merchandise (GDP) (SBA)
On average, tiny businesses person 11.7 employees. To enactment successful perspective, the mean leader steadfast had 24.9 employees successful 2020 (SBA)
The survey recovered that the astir communal worries among tiny concern owners successful 2024 see inflation/economic conditions (47%), needing to rise prices (32%), rising contention (24%) (Salesforce)
57% of tiny concern owners expect to make caller jobs successful 2024 (Goldman Sachs)
According to a survey, 65% of tiny businesses study that their concern is successful bully wellness wide (Small Business Index)
6-in-10 tiny businesses assertion they’re acrophobic astir cybersecurity threats (Small Business Index)
The immense bulk (86%) of Americans assertion tiny businesses person a affirmative impact. Only 29% of US adults accidental ample corporations person a affirmative interaction (Pew Research Center)

Small Business Owner Statistics

Women ain 43.4% of tiny businesses successful the US (SBA)
Racial minorities person ownership of 20.4% of tiny businesses successful the US (SBA)
Gen X (43%) and Boomers (37%) relationship for the immense bulk of tiny concern owners (Guidant)
In 2021, 27% of tiny businesses were family-owned (Pew Research Center)
In 2021, lone 1 successful 10 tiny businesses successful the US were jointly owned and operated arsenic by spouses (Pew Research Center)

Small Business Financing Statistics

A bulk of tiny businesses assertion to usage idiosyncratic savings (71%) and recognition cards (67%) to concern their concern (Small Business Index)
The mean SBA indebtedness is $479,685 nether 7(a) indebtedness programme successful 2023 (SBA)
A full of 57,362 loans amounting to $27.52 cardinal were provided to tiny businesses nether the 7(a) indebtedness programme successful 2023 (SBA)

Small Business Survival and Failure Statistics

Based connected a cohort of recently opened businesses successful March 2021, 20.9% of caller businesses neglect by twelvemonth 1. By twelvemonth 2, 32.8% of caller businesses fail. (BLS)
Between 1994 and 2020, an mean of 67.7% of recently established businesses managed to past for a minimum of 2 years. (US Small Business Administration ) /
In 2021, the bulk (61%) of tiny businesses person been progressive for a minimum of 6 years (Pew Research Center)
In 2021, 15% of tiny businesses had been operational for implicit 25 years (Pew Research Center)

Inflation, prime of labor, and taxes are the astir important problems for tiny concern owners successful the US (Statista)

Most Important Problem Share of Survey Respondents

Inflation	25%
Quality of labor	18%
Taxes	14%
Cost of labor	10%
Poor sales	8%
Government regulations	6%
Cost/availability of insurance	6%
Other	5%
Finance and involvement rates	4%
Competition from ample businesses	4%

Small Business Marketing Statistics

The immense bulk (77%) of tiny and midsize businesses already usage oregon person intentions to usage “social media selling to summation lawsuit engagement and boost online traffic” (Verizon)
Facebook is the astir fashionable societal media level to beforehand products among tiny to midsize concern owners with a usage complaint of 81%. Other commonly utilized societal platforms see Instagram (59%), LinkedIn (48%), X/Twitter (39%) and TikTok (34%) (Verizon)
In a survey of tiny to midsize retailers and restaurants, 96% of respondents study they get the astir engagement connected TikTok, followed by Facebook (68%) and Instagram (47%) (Capterra)
7 successful 10 tiny businesses outsourced their selling efforts successful the past twelvemonth (inTandem by vcita)

AI Statistics for Small Business

In a survey of tiny to midsize concern owners, 14% of respondents study utilizing AI solutions astatine their organizations. AI adoption is higher than mean among businesses successful amusement (23%), operation (15%), and retail (15%) industries (Verizon)
Nearly fractional (43%) of tiny to midsize businesses judge that AI has the imaginable to make further gross for their enactment (Verizon)
One survey recovered that 12% of tiny businesses with 1-9 employees usage AI, portion among firms with 10-49 employees the AI usage complaint reached 30% (Search Engine Land)