Small Business Statistics in 2023 – Are They Overwhelming?
Transforming your small business to an enterprise needs keen understanding. Through small business statistics, you can grab important information about your business.
Let us get started with it.
The Small Business Statistics Are
General Small Business Statistics
Small firms make up about 90% of all enterprises worldwide (World Bank)
According to the World Bank, SMEs play a key role in our economy, accounting for around 90% of enterprises and 50% of jobs globally. Formal SMEs also generate roughly 40% of national income in emerging enterprises.
According to the World Bank, small businesses are less likely than large businesses to acquire loans and instead rely on internal funds, cash from family, and personal savings to fund their operations. Every year, almost 65 million businesses are estimated to have unmet funding needs.
Small businesses account for almost 99 percent of all enterprises in the United States – JP Morgan Chase
According to JP Morgan Chase, small businesses made up over 99 percent of America's 28.7 million organizations in 2014. Around 88 percent of these businesses had fewer than 20 employees, and 40% had revenue of less than $100,000. Based on these figures, the Small Business Administration estimates that 29.6 million small businesses are present in the United States.
The industry that accounts for the majority of small companies (12%) is food and restaurants – Guidant Financial
With 11 percent apiece, retail and business services come in second. The health, beauty, and fitness services category comes in third with 9% of small enterprises, followed by residential and commercial services with 7%.
Finding exceptional personnel is the main difficulty for 9.56 percent of small firms – Small Business Trends
More than half of small business owners say hiring the right person is challenging. Furthermore, 35% of respondents stated it is more difficult to find personnel now than five years ago, and 24% said it is more complicated than it was ten years ago.
To entice staff, 37% of SMBs offer greater salaries – Indeed
When it comes to money, small enterprises have difficulties. However, according to small business employment statistics, 37% of questioned firm owners give higher compensation to attract more people. SMBs have a distinct advantage over large corporations due to lucrative pay and other incentives such as flexible vacation policies and advancement chances.
The majority of small business entrepreneurs lack a college diploma- Guidant Financial
The majority of business owners are either high school dropouts or have never attended college. Only 17% of small business entrepreneurs have a bachelor's degree. Furthermore, 30% of those who graduated from high school but did not attend college have an associate's degree, while 31% have a bachelor's degree.
Check out customer loyalty and retention statistics here.
Small Business Demographics Stats
Sixty-six percent of small firms are owned by Gen-Xers- Guidant Financial
Small enterprises are dominated by Gen-Xers, with 41%, and Boomers following with 41%. Millennials come in third, with 13 percent of small firms owned by them. Gen-Zers make up only 1% of small business owners.
Males account for 66% of small business owners – Guidant Financial
Statistics reveal that men are the majority of small business owners. Only 31% of small business owners identify as female, with the rest being undecided.
Women own 45 percent of enterprises in the United States – Ueni
The number of women-owned firms continues to rise, and the gender gap in the United States is narrowing. Men own 54.98 percent of American enterprises in 2020, a considerable decrease from 2018 when they accounted for 60% of business owners.
Sole proprietorships are made up of 52.34 percent women – Ueni
Women are more likely than men to own a sole proprietorship rather than a company with staff. In fact, statistics reveal that female founder are underrepresented in larger corporations. A woman leads 32.59 percent of enterprises with four or more employees.
Every day, there are 1,817 new women-owned enterprises – American Express
Between 2002 and 2007, the average number of new enterprises owned by women was 714, according to small company owner demographics. During the recession and recovery era, 1,143 between 2007 and 2012. The number of newly created women-led firms increased to 952 in the post-recession period.
Women-owned firms generate less than $100,000 in revenue in 88 percent of cases – WBENC
According to small company revenue figures, the number of women-led businesses with over $1 million in revenue has increased by 46 percent in the last decade. These companies made $135 billion in revenue, accounting for 8% of total small company revenue for all women-owned enterprises. This would be a considerable amount, but these enterprises only account for 1.7 percent of all women-owned businesses.
Nearly half of female entrepreneurs are between the ages of 45 and 65 – Los Angeles Business Journal
According to small company owner demographics, half of all female business owners (48%) are between 45 and 65. Female entrepreneurs aged 25 to 44 make up 31% of this category.
Small Business SME Trends Stats
30% of pandemic entrepreneurs believe they'll never open a brick-and-mortar location (Salesforce)
According to Salesforce survey data, the number of small businesses formed in the United States during the pandemic climbed by 24% between 2020 and 2021. On the other hand, these businesses operate differently from the average small business. According to the poll, 30% of pandemic entrepreneurs have no desire to open a physical location.
Salesforce also discovered that 32.9 percent of people furloughed and were unable to work during the epidemic launched a small business.
The food and restaurant industries are expanding at the fastest rate (Guidant Financial)
According to Guidant Financial research, the food and restaurant industry will be the fastest expanding for small businesses in 2020. (12 percent growth). Retail was the second-fastest increasing option, with 11% growth, followed by Business Services (11% growth) and health and beauty services (9% growth).
Small business owners are enthusiastic about the future in 24.72 percent of cases (Salesforce)
According to Salesforce research, despite the obstacles posed by the epidemic, roughly 72% of small business owners are optimistic about the future. Small business owners boosted their online presence by 72 percent in the last year, and 71 percent indicated they survived the pandemic because they engaged in digital transformation.
Small Business Marketing Statistics
70% to 80% of people conduct research on a small business before visiting or purchasing from them – Inc.
Any business, regardless of its size, must have a website. A website provides several advantages, including higher visibility, legitimacy, and a better client experience. With the vast majority of customers checking out a business online before making a purchase, you can't afford to neglect the importance of having a well-designed website.
There's also no excuse to put off this vital chore when so many website builders and small company SEO professionals are available to assist you in launching your site and optimizing it for search engines.
Websites are used by 64% of small enterprises – Small Business Trends
Even though having a website is beneficial to small businesses, data reveal that one-third of them still do not have one. The primary reasons for not having a website, according to them, are cost, industry irrelevance, and social networking.
The most effective digital marketing technique, according to 47.92 percent of small company owners, is having a website – Iron Paper
According to 89 percent of small business owners, SEO is also beneficial. Create a website that targets a relevant audience with the proper keywords, produces high-quality content, and provides a dynamic user experience. The combination of these two strategies is, without a doubt, the most crucial aspect of a successful digital marketing strategy.
Every year, over half of small businesses spend $10,000 or less on digital marketing- Clutch
According to small business marketing budget figures, the companies' restricted resources are why they invest up to $10,000 in digital marketing each year. In addition, an in-house team is the most typical resource they employ.
43 percent of small businesses use a team of in-house professionals to focus on digital marketing, while 39 percent of small enterprises use a marketing software. The rest hire digital marketing firms to help them.
Small firms invest in social media marketing in 49.73 percent of cases – The Manifest
Despite their limited expenditures, small firms make use of digital marketing channels. A website (73%) is the most popular digital marketing medium, followed by email marketing (57%), SEO (49%), video (34%), and content marketing (34%). (32 percent ). Almost three-quarters of small firms have already made a social media investment.
Small Business Covid Impact Stats
During COVID, only 63 percent of enterprises remained profitable (Guidant Financial)
According to Guidant Financial, the COVID-19 pandemic harmed most small businesses. Since the epidemic began, around 41% of companies have reported a negative shift in business operations, and just 63 percent of companies will be profitable in 2020.
Around 4% of businesses expect to go out of business due to the pandemic, while 78 percent feel they will be able to survive. COVID's most common effect was a loss of revenue, which affected 23% of businesses.
During the Pandemic, 60% of small enterprises closed (Yelp)
According to Yelp's Economic Impact Report, the pandemic caused roughly 60% of small companies to close or cease operations. Since the beginning of April 2020, the number of small businesses that have closed has steadily increased.
The majority of SMB owners estimate COVID-related losses to be in the $10,000-$50,000 range – ZenBusiness
COVID has a major financial impact on enterprises around the world, according to small company data. According to 11% of small business owners, the economic impact of the pandemic will be between $100,000 and $250,000. However, the majority (31%) anticipate the cost to be between $10,000 and $50,000, and only 3% say their business will be unaffected.
75 percent of small enterprises restructured their operations – Onpay
Many small businesses have reduced their hours of operation or have temporarily shuttered their doors. By starting to work remotely, 35% of people could adjust. Before COVID, 44% of small enterprises permitted remote employment.
Even once the coronavirus has passed, 65 percent of SMBs believe working from home will continue. 11 percent chose a remote working solution, but only for a limited time, and intend to return to the office once the situation is resolved.
Small businesses are the backbone of the global economy and a crucial component of making the world so adaptable. As the small business statistics above illustrate, there's still plenty of room for entrepreneurs to get involved in small business sales and carve out a niche.
Small enterprises will only continue to expand as time goes on. I hope the small business stats might help you know more about your future strategies. Happy Profits!