15 Small Business Statistics (2021 State of Business)

Small Business Statistics for Entrepreneurs

• There are approximately 30.7 million small businesses in the USA alone

• Small businesses create approximately 1.5 million jobs every year in the US

• They also account for 60% of new jobs in the United States

• Small and medium sized businesses account for 90% of the business population

• 55% of small business owners report that their reason for starting a business was to “be my own boss”

• 55% of small business owners report that their reason for starting a business was to “be my own boss”

• 39% of surveyed business owners stated that they followed their passions

• The COVID-19 pandemic rendered nearly 33% of small businesses nonoperational

• Over 70% of US small businesses were shut down in March 2020 when the USA became the epicenter of the COVID-19 virus

• 50% of all small businesses are operated from home

• Recently, approximately 51% of business owners have increased online interactions with clients

• The likelihood of Millennials and Gen Zers creating side businesses is 188% compared to Baby Boomers

• 82% of businesses that fail do so because of cash flow problems

• Approximately a quarter of small businesses begin with no financing whatsoever

• 84% of small business owners indicate that they’re feeling optimistic about the future of their companies

• More than 50% of small enterprises fail within the first year of operation

• The percentage of small businesses failing within the first 5 years is estimated to be around 95%

• 64% of small business owners begin with only $10,000 in capital

• 42% of new businesses fail because their is a lack of market demand

• Only 40% of small businesses are profitable

• More than half (52%) of small business say the biggest problem they have is labor quality

• Only 64% of small businesses have their own website

• Just less than 2 thirds (64%) of small businesses use social media in their marketing strategies

• 73% of marketers believe their social media marketing efforts have had a noticeable impact on growth


Smallbizgenius, Oberlo, Fundera, SBA.gov, Forbes

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