It is from the dreams of a small, entrepreneur that large economies are built. As the foundation of any economy, entrepreneurs are the lifeblood of any progressive society. These entrepreneurship statistics will more show their importance. They are the ones who create new businesses, add value to the national income, realize social change, and drive community development.
We’ve collected over a hundred entrepreneurship statistics for you. With these valuable data, you’ll know how small businesses are thriving in this digital economy.
1. Entrepreneurship Market General Statistics
According to the U.S. Small Business Administration, a small business is an organization with fewer than 500 employees. This definition makes a wide array of types of entrepreneurial pursuits. From bricks-and-mortar stalls to plumbing services and street food vending, small businesses are everywhere. Here are some key entrepreneurship market size figures:
- As of 2018, 99.9% of America’s 30.2 million firms are small businesses. (US Bureau of Labor Statistics)
- Around 30% of new non-employer businesses and 7% of new employer firms didn’t use any startup capital. (US SBA)
- For the first time in a decade, the majority of small firms—53%—report of increases in revenues. (NSBA)
- In the U.S., around 543,000 small businesses are started every month. (DocStoc)
- It takes 6 days to start a business in the U.S., 5 days in the U.K., 4 days in Belgium, 3 days in Australia, 2 days in Canada, and only 1 day in New Zealand. (World Bank)
- An average of 1.9 million new jobs is created annually by small businesses. (BDM)
- Small businesses employ a total of 58.9 million workers. (US Small Business Administration)
- Microbusinesses–those with 10 employees below–compose 75.3% of all private-sector enterprises. (US SBA)
- 39%% of small business owners reported of job openings they could not fill. 35% of these job openings are for skilled workers and 15% are for unskilled labor. (NFIB)
- 47.5% of the entire American workforce is employed in small businesses. (US Small Business Administration)
- 25% of entrepreneurs find it difficult to find qualified employees. (NFIB)
- U.S. small businesses employed 58.9 million people or 47.5% of the private workforce. (SUSB)
- 75.3% of small businesses are with 20 people or less. (US Census Bureau)
- 10.5% of all employees in the private sector work in a microbusiness. (US SBA)
- The U.S. has a 4.4% job openings rate versus a 3.9% unemployment rate. (US Bureau of Labor Statistics)
- Most small business employees stay with their employers for 4 years or more. 37% remain on average 8 years or longer. (NSBA)
- The U.S. labor force is composed of 159.8 million people age 16 and above. (US Bureau of Labor Statistics)
- 23% of entrepreneurs plan to add more employees. 5% want to reduce their staff. (NFIB)
- Of the 63% of businesses currently hiring, 89% have few or without qualified applicants. (NFIB)
- 36% of small business owners reported few qualified applicants for their open positions, and 20% have no applicants at all. (NFIB)
- In the past five years, 37% of small-business owners have increased their part-time employees. (NSBA)
Industry-Specific: US Manufacturing
- 98.6% of manufacturing companies are small businesses. (US Census Bureau)
- Of all U.S. manufacturers, 89% cannot fill up their job openings. (Deloitte)
- For 2018, the manufacturing sector contributed $2.38 trillion to the U.S. economy. (US Bureau of Economic Analysis)
- 75% of U.S. manufacturers employ 20 employees or less. (US Census Bureau)
- Between 2018 and 2028, the skills gap may leave an estimated 2.4 million positions unfilled. (Deloitte)
- Manufacturing produced 11.6% of U.S. economic output and 8.5% of the workforce in 2018. (National Assoc. of Manufacturers)
Employs fewer than 20 employees
Furniture and related products%
Fabricated metal products%
Beverage and tobacco products%
Electrical equipment, appliances and components%
Plastics and rubber products%
Computers and electronic products%
Source: US Census Bureau (Manufacturing) Designed by
Knowing these entrepreneurship data is crucial to help achieve profitability and success. One efficient way of managing your business information is by deploying some of the best business intelligence software. In today’s highly competitive environment, it really pays to use what you know to your advantage.
2. Small Business and Entrepreneurship Statistics
These entrepreneurship market research data show some key information about the ins and outs of starting and running a small business.
- The top motivation for someone to open their own business is that they’re ready to become their own boss. (Guidant Financial)
- The best industries to start a business in 2018 are technology, health, energy, media, and consumer retail. (Inc)
- 54% of small business owners worry about finding hires with great talent (Salesforce)
- In 2018, industries with the most number of small business startups were business services (11%), food/restaurant (11%), health/beauty/fitness (10%), general retail (7%), and home services (6%). (Guidant Financial)
- People who own a home are 10% more likely to become an entrepreneur versus those who don’t. (Fundera)
- Having two founders increases the possibility of running a successful small business versus having one. (INC)
- 69% of American entrepreneurs start their business at home. (Small Business Trends)
- In 2017, most small businesses are LLCs (35%), S-corporations (33%), corporations (19%), sole proprietorships (12%), and partnerships (2%). (National Association of Small Business)
- The top reasons for starting a business: ready to be his/her own boss (26%), wanted to pursue his/her passion (23%), opportunity presented itself (19%), dissatisfied with corporate America (12%), got laid off or outsourced (6%), unprepared to retire (6%), other reasons (5%), and major life events (3%). (Guidant Financial)
- 33% of small business owners feel confident about their future. (NSBA)
- In their role as an entrepreneur, 53% of small business owners ranked their happiness at 9 or more. (Guidant Financial)
- US$10,000 is the average startup capital. (Digital)
- In 2018, the leading small business financing strategies were personal funds (77%), bank loans (34%), borrowing from family/friends (16%), and other sources (11%). (Lendio)
- The median income for a small business owner is $59,000. (Digital)
- 64% of small businesses started with US$10,000 capital. (FSB)
- 58% of entrepreneurs started with a minimum of US$25,000. (Small Business Trends)
- 82% of startup funds come from the entrepreneur, or their family and friends. (Small Business Trends)
- 40% of small businesses are profitable, 30% break even and 30% lose money continuously. (Small Business Trends)
- Business owners with student debt started with smaller ventures. (SBA)
- Male entrepreneurs own 14.8 million businesses in the U.S. (StartBlox)
- 73% of small business owners are men. (Guidant Financial)
- Female entrepreneurs own 9.9 million small businesses in the U.S. (StartBlox)
- Women-owned businesses generate over US$1.7 trillion in revenues. (American Express)
- 30% of all new entrepreneurs in the U.S. are immigrants — up from 13.3% in 1996. (The Kauffman Index)
- Around 9 million people are employed in women-owned businesses. (American Express)
- 35% of entrepreneurs are 50-59 years old, 25% are 40-49 years old, and 18% 60-69 years old. (Guidant Financial)
- 12.5% of entrepreneurs in the U.S. are immigrants. (Crowdspring)
- 50% of small business owners are between 50 and 88 years old. (Small Business Trends)
- 95% of entrepreneurs have a bachelor’s degree. (Serious Startups)
- 2.5 million business owners are veterans of the U.S. armed forces. (US SBA)
- From 1997 to 2017, the number of female entrepreneurs increased by 114%. (Fundera, 2018).
- 42% of self-employed professionals have no retirement plans. (FreshBooks)
Starting a business is just half of the entire entrepreneurial journey. The other half is sustaining it. As competition continues to intensify in this market environment, you must ensure that you have the latest, necessary tools for small business to survive and thrive.
3. Marketing and Entrepreneurship Statistics
Today’s entrepreneurs know the value of using digital marketing strategies to survive and remain relevant. An effective marketing approach nowadays is leveraging on the benefits of the best CRM tools for small businesses. Here are some key marketing and entrepreneurship figures:
- The top marketing objective for every small business is to drive sales. (Keap)
- 50% of entrepreneurs use 2 hours/week on marketing. (Iron Paper)
- 47% of small business owners handle their own marketing activities. (Clutch)
- 55% of entrepreneurs are aware of their marketing efforts are effective, 33% do not know. (Keap)
- 92% of business owners think that the most effective digital marketing technique is having a website. (Iron Paper)
- 70-80% of consumers first look at small business product/service offerings. (Blue Corona)
- 29% of small business owners don’t intend to use any form of digital marketing in 2019. (Keap)
- 83% of entrepreneurs with a website feel a competitive advantage to those without one (GoDaddy).
- 49% of small business owners consider social media management as their primary marketing tool. (Keap)
- 89% of entrepreneurs think that the most powerful digital marketing technique is search engine optimization. (Iron Paper)
- 61% of small businesses spend on their social media marketing campaigns. (Clutch)
- Social media is the top marketing strategy for small businesses in the U.S. (Statista)
34% are still without any marketing tool or plan in place
SEO or digital advertising tools%
Source: Keap's 2019 Small Business Marketing Trends Report. Designed by
Small business owners must continue using social media and other digital marketing types in their marketing. To ensure that every technology investment counts, it is suggested that the proper tools are used. For instance, it’s best to deploy only the top social media management solutions from reputable vendors.
4. Business Success and Entrepreneurship Statistics
Almost everything about starting and running a business is a risk. As such, there’s no such thing as a guarantee in entrepreneurship, perhaps, only the motivation and firm resolve of the entrepreneur. Everything else is unknown and uncontrollable. Here are some entrepreneurship statistics about business success and related subjects:
- From 2000 to 2017, small businesses created 8.4 million net new jobs versus the 4.4 million jobs of large businesses. (US Bureau of Labor Statistics)
- Around 540,000 people in the U.S. become new business owners each month. (The Kauffman Index)
- Small businesses represented 65.9% of all new jobs created in the 2000-2017 period. (US Bureau of Labor Statistics)
- 82% of successful business owners never doubted themselves in terms of having the proper experience and qualifications to run a business. (SmallBizTrends)
- Startups have a 37% success rate after their first 4 years. (Serious Startups)
- Around 85% of small businesses in this industry survive their first year, about 75% survive their second year, and around 60% make it through their fifth year. (US BLS)
- Entrepreneurs who have successfully started a business tend to have a 30% success rate in their next ventures. (Inc)
- Small business owners who initially failed with a previous business have a 20% chance of success in their next try versus an 18% success rate for first-timers. (Inc)
- 33% of entrepreneurs have finished high school/GED. Others have associate degrees (18%), bachelor’s degrees (29%), master’s degrees (16%), and doctorates (4%). (Guidant Financial)
- Healthcare and social assistance businesses tend to have the highest survival rates among all industries for the 2014–2024 period. (US BLS)
- 75% of transportation/warehousing start-ups survive their first year. 65% survive the second year and around 40% survive their fifth year. (US BLS)
- The healthcare and social assistance industries are predicted to grow by 21% from 2014–2024, the fastest job growth rate in any U.S. industry. (US BLS)
- In the construction industry, about 75% of start-ups make it through their first year. 65% of businesses survive their second year, and around 35% survive their fifth year. (US BLS)
This entrepreneurship report highlights some important statistics on small business survival and longevity. Successful entrepreneurs tend to have a set of effective tools and effective practices. For one, they often deploy some of the best productivity solutions to support employee productivity at the workplace.
5. Business Challenges and Entrepreneurship Statistics
Running a business is more about dealing with problems. As they say, starting and operating an enterprise is never for the faint of heart. Here are some key entrepreneurship growth rate statistics about business challenges that entrepreneurs must address:
- 53% of small-business owners in 2019 believe that there’s an impending recession. (CNBC/SurveyMonkey)
- Employee retirement generated 2.69 million new jobs in U.S. manufacturing. (Deloitte)
- 22% of small business owners consider the lack of time and resources as their most serious challenge today. (Keap)
- 60% of small companies are victims of cybercrimes every 6 months. (Cyber Security Ventures)
- 43% of cyberattacks target small businesses. (Digital)
- The number-one reason for failure, cited by 42% of startups, is the lack of a market need for their product. (CB Insights)
- Other reasons why businesses fail include bankruptcy (29%), without the team for the business (23%), and were outcompeted (19%). (CB Insights)
- Around 66% of business survive 2 years in business, 50% of all businesses will survive for 5 years, and 33% will survive in 10. (US BLS)
- 20% of small businesses fail in their first year, 30% in their second year, 50% after five years, and 70% of in their 10th year. (US BLS)
- Scaling quickly had made 74% of tech startups to fail. (Crowdspring).
- Cash flow problems cause 82% of businesses to fail. (Entrepreneur)
- 70% of upstart tech companies fail, typically by 20 months after first raising financing. (CB Insights)
Based on an Analysis of 101 Startup Post-Mortems
Need/lack business model%
Source: CB Insights 2018 Designed by
These entrepreneurship facts can be very helpful for would-be-small business owners. If you’re a business owner, make sure you’re adequately equipped with today’s best technologies. For instance, if you want to ensure that your scarce resources are properly utilized, you need to have a reliable ERP platform, among other technology tools for small businesses.
6. Social Enterprise and Entrepreneurship Statistics
A new type of entrepreneurship that focuses more on helping society emerges. These social enterprise statistics will show that operating a business is no longer just about making money. Businesses are increasingly being evaluated based on how they relate with their employees, clients, and society.
U.S. Social Enterprise Statistics
- More than 50% of all U.S. social enterprises were established starting in 2006. (Social Enterprise Alliance)
- Around 40% of American social enterprises have 5 employees or less. 8% employ over 100. (Social Enterprise Census)
- 45% of U.S. social enterprises have US$250,000 or less in revenue. 22% have over US$2 million. (Social Enterprise Census)
- 35% of American social enterprises are non-profits; 31% are LLCs/for profit. (Social Enterprise Census)
- 77% of social businesses consider citizenship and social impact as the main reasons they became social enterprises. (Deloitte)
- 20% of U.S. social enterprises focus on U.S. economic development. Others are involved in workforce development (16%), energy and the environment (12% ), education (11%), and international cooperation (7%). (Social Enterprise Census)
- 86% of millennials think that business success should not only be about making profits. It should also include the extent of service to society and the world at large. (Deloitte)
Social Enterprises Elsewhere in the World
- In the U.K., there are over 470,000 social enterprises that employ 1.44 million people in 2017. (UK Dept. for Digital, Culture Media & Sport)
- 7% of all U.K. small businesses are social enterprises. They represent 68,000 small firms, US$28.98 billion in revenue, and 800,000 in total employment. (Social Enterprise)
- 40% of British social enterprises are led by women, 40% have a director with a disability, and 31% have Asian, Asian or minority ethnic directors. (Santander/Social Enterprise UK)
- More than 57 percent of social enterprises in Canada was only established six years ago. (SocialChangeCentral)
- There are 20,000 social enterprises in Australia in 2016, employing 300,000 people and generating 2-3% of the country’s GDP. (Social Traders)
- Within the next 10 years, social enterprises in Canada will generate up to 4% of GDP and will employ 500,000 Australians. (Social Traders)
- Social enterprises are also generating more than their fair share of profits all around the world, with a British Council report estimating that
- Social enterprises in France account for over 10% of its GDP, 15% of Italy’s GDP, and 15.9% in Belgium and the Netherlands. (The British Council)
These social entrepreneurship statistics indicate that millions are being employed to benefit society, wildlife, the environment, and other valuable causes. Non-profits are not exempt from being efficient and productive. One way to achieve efficiency is by deploying some of the best accounting software for non-profits, among other approaches.
Plan your entrepreneurship strategy
Knowing statistics like these provide valuable insights into the colorful world of entrepreneurship. As more new small businesses join the fray, customers are likely to benefit more with the new ideas that fresh would entrepreneurs bring. Here are some of the important takeaways of this selection of entrepreneurship statistics.
- As a whole, small businesses bring the largest economic impact on any country.
- Entrepreneurship is one of the noblest and most exciting of human endeavors.
- Digital marketing is key to any entrepreneurial pursuit today.
- Business success can only be achieved after hurdling multitudes of risks.
- Failure in business should be taken as a motivation to be a better entrepreneur.
- A social enterprise should be the model of all businesses as it offers a genuine win-win approach.
Small businesses will continue to be the foundation of all countries across the world. If you’re an existing business owner–or is planning to be one–you should be very prepared to operate in this highly competitive market environment. You should have the best set of digital tools to address any type of risks to survive.