Small businesses in the United States are more important than most people might think. Here are several small business statistics that every small business owner should know. Small business is a major driver in not only the local economy, but national and even global.
There are currently 32.5 million small businesses registered within the United States. Small business is an economy driver. When we look at a local region, we can see how small business fuels local economies. 23 million of these small business have under 20 employees. We can clearly see how small local business not only fuel the local economy, but also employ people in their region.
Over 90 percent of all business growth is represented in small and medium sized businesses. This leads to major job creation being led by these same small business start-ups. 1.5 million new jobs are created annually in the United States by small business alone.
Younger people are more likely to start a small business than older traditionalists. The reason for this is the opportunity exists with new technology and new product ideas that captivate the imagination and break into the market more easily. Young people see no barriers and are more likely to spend their time developing their new business.
Business networking groups make it easier for small business entrepreneurs to get ideas about starting a new business, along with direction and mentorship. Young people take advantage of these networking groups to help get their new business ideas off the ground.
Almost 50% of small business startups fail within the first 5 years of business. A clear 30% of startups fail within the first year. Taking the proper steps for advertising and brand recognition can help your business weather the first years as a startup and get a footing in the region you are working in.
COVID is something to take into consideration when looking at the impact on small business. Nearly one third of all small businesses nationwide were shut down due to COVID. This particular pandemic closed the doors of many struggling small businesses, never to be reopened again. They were closed due to mandatory government orders with little to no help for their survival. During this last wave of the pandemic, 70 percent of small businesses shut their doors.
In conclusion, these simple statistics give us an overall view of how small businesses startup, survive, or fail. There will always be reasons that are unforeseen that can lead to small business disaster. Planning for acts of God can help your business not only survive but thrive.