There are currently about 33 million small businesses active in the US. Most of them employ only one or two people.
Now and then, a small business grows big enough to be considered a midsize business. Whether you manage a large or tiny corporation, staying informed about the latest small business statistics could help you plan your future strategies.
Therefore, you must ensure you choose the best business path. Some aspects of the business should be well thought out before you begin.
Read below for some key business statistics that persuade you about how you do business.
About 99% of Businesses in the US are Small Businesses
Small businesses are the backbone of the United States economy. Approximately 99% of businesses in the US are small businesses, and they employ 47.5% of the private labor force, making up 54.3% of all private sector sales.
Moreover, small businesses are estimated to create 1.9 million jobs, accounting for 64.8% of net new jobs. As technology expands, small businesses can access better data analytics, cloud computing, mobile marketing, and other tech to scale their businesses.
These new trends allow them to improve financing for small businesses. Even with these advancements, small businesses face many challenges, such as a need for more access to capital and qualified personnel.
Almost 22% of Businesses Fail Within Their First Year
This is a concerning statistic, particularly for budding entrepreneurs who want to focus on getting small business success in their first year. Many of those that have failed have likely struggled with the cost of opening a business, the complexities of marketing, and the financial burdens of a new business.
Outsourcing certain business operations saves money and time, while a freelance job could be a more affordable way to retain specific skills. Conduct regular audits of expenses to look for potential cost-saving measures and learn about discounted cash flow method to reduce losses better.
12 Million Jobs Created By Small Businesses in the Last 15 Years
Small business growths serve as job creators due to their impact on local communities. Small businesses create jobs that drive the local economy and strengthen local social infrastructure. They also provide opportunities to employees that may not be available through large-scale employers.
As a result, these small businesses drive income, wealth, and social mobility in America. Small businesses must create around 4 million more jobs in the next 15 years.
More than 21% of Businesses are Owned by Women
Women around the world are creating more jobs than ever before. They are proving to be an invaluable part of the workforce. A vast array of industries is spearheaded by female business owners, from tech to hospitality, retail, finance, and consulting.
In most cases, women entrepreneurs face even more significant challenges than their male counterparts. Furthermore, there is a lack of understanding in the business world, which makes it difficult for women to realize their full potential. Including women in all aspects of the business is an investment, resulting in a more diverse team, better ideas, and fresh perspectives.
Identify Recent Small Business Statistics to Boost Your Business Today
Small business statistics are essential when planning and executing your business strategies. Being aware of this data can give you an edge over your competitors and better understand what direction to take when managing your business. Take the time to research and ensure the most complete and up-to-date information!
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