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40 Small Business Statistics For 2019
As the statistics prove, owning a small business can be hard in any market, because of this, we have compiled a list of important small business statistics that will help small business owners in 2018 make the best decisions for their startups or companies.
Ownership and Demographic Statistics
Are small business owners happy?
– According to a 2017 Fundera study, 92% of business owners show no regrets about going into business for themselves.
How many registered businesses are in the United States?
– According to the 2018 United States Small Business Profile, there are 30.2 million small businesses.
How many minorities own business in the United States?
– According to the 2018 United States Small Business Profile, minorities represent 27.78% of owners with 8 million small businesses.
How many women own business in the United States?
– A recent Small Business Administration’s Office of Advocacy study shows that women own 36% of all businesses.
How many people do small businesses employ?
– According to the 2018 United States Small Business Profile, small businesses employ 58.9 million people. That figure represents 17.85% of America’s population. Not just our working people, our entire society!
Capital and Financing Statistics
How much money does it take to open a business?
– While this figure is entirely subjective, a recent survey performed by Intuit shows that 64% of business owners start with less than $10,000.
Do most business owners get a loan?
– According to a recent study done by The National Small Business Association, 40% of business owners financed their company through a bank loan.
What are the chances that a big bank will extend a business loan?
– In a March 2017 study, Biz2Credit found that big banks have a small business loan approval rate of 24.1%.
What are the chances that a small bank will extend a business loan?
– In the same 2017 study mentioned above, Biz2Credit found that smaller banks more than doubled the small business loan approval rate of bigger banks by turning in an approval rate of 48.9%.
Are there better options when looking for a business loan?
– Biz2Credit also reported that credit unions have a small business loan approval rate of 40.7%, while institutional lenders own the market with a small business approval rate of 63.3%.
Do business owners have enough working capital?
– According to a recent study done by The National Small Business Association, 27% of business owners reported not having access to the necessary capital used to fund general business operations.
How does lack of capital change the trajectory of a business?
– Within that 27% of business owners who struggled with access to capital, 33% claimed that lack of funding was preventing their business from expanding.
What other problems comes from lacking capital?
– Within that 27% of business owners who struggled with access to capital, 18% were forced to lay off a portion of their staff.
How much do small business owners pay themselves?
– According to a 2017 Fundera study, 86.3% of small business owners pay themselves a salary that is less than $100,000 a year.
Do all business owners pay themselves a salary?
– According to the same 2017 Fundera study, almost a third of all small business owners, 30.07% to be exact, do not pay themselves at all.
Who makes more money, small business owners or wage workers?
– The 2017 Fundera Study concluded that the typical wage worker averaging a 40 hour work week makes more than 60.7% of small business owners.
Growth and Failure Statistics
Do small businesses create new jobs?
– According to the 2018 United States Small Business Profile, small businesses created 1.9 million new jobs in a single 12 month period in 2015.
Are small businesses opening or closing at a faster rate?
– A recent Small Business Administration’s Office of Advocacy study shows that small businesses are opening up at a faster rate than they are closing.
Do small businesses represent most of the companies in America?
– According to the 2018 United States Small Business Profile, small businesses represent 99.9% of all firms.
How long does the average business stay open?
– According to an ongoing study that is being performed by the Bureau of Labor and Statistics, since 1994 79.6% of businesses have made it to their second year of business. With that said, only 35.7% of business owners make it a decade.
Why does the average business fail?
– According to a poll done by CBInsights Analysis, 42% of business fail because there’s not a market need for their product or service. Here are a few other statistics pulled from the CBInsights Analysis poll.
29% of businesses failed because they ran out of capital.
23% of businesses reported failing due to the lack of proper team managing operations.
18% of businesses reported failing due to poor product pricing and cost management.
17% of businesses reported failing due to offering a subpar product.
17% of businesses failed because they reportedly lacked a business model
14% of businesses reported failing due to poor execution of marketing
14% of businesses reported failing due to their handling of customers.
Is there a specific industry that small businesses seem to perform better in?
According to data pulled from the Bureau of Labor Statistics, the Health Care/Social assistance industry sees 60% of startups enjoy a minimum of 5 years of business.
Is there a specific industry that small businesses seem to perform worse in?
According to data pulled from the Bureau of Labor Statistics, the construction industry only sees ‘s 35% of startups enjoy a minimum of 5 years of business.
Social Media and Marketing Statistics
How many small businesses utilize social media?
– A 2018 poll performed by InfusionSoft found that 71% of small business owners plan on using social media for marketing in 2018. Here are a few other statistics pulled from the 2018 InfusionSoft poll.
– While most businesses are with the times, 15% of small businesses reported a plan not to utilize digital marketing of any sort in 2018.
– Small business owners reportedly feel like they do not have the time needed to market. Being busy with day to day operations seems to be the number one reason marketing does not get done.
– 31% of business owners said that driving sales was their marketing goal for 2018.
Are small businesses creating apps for their customers?
– In a 2016 study performed by Clutch, they found that less than 25% of small businesses had their own mobile app.
Do more small businesses intend to create apps for their customers?
– While statistics suggest a quick spike in growth concerning companies deploying mobile apps, 31% of business owners claim that they are unlikely to launch an app at any point in the future.