Surprising Small Business Stats You Should Know To Help Create Your Own #SMBSuccessStory

Updated: Jun 15, 2020

Transforming your vision into a successful small business is empowering yet challenging. If you are a small business owner – or plan to become one – you should familiarize yourself with the most recent trends. Check out these small business stats and 2019 trends.

Sandra’s Top 7 Small Business Statistics

Immigrants have founded 55% of the unicorn startups in the U.S.

There are 30.2 million small businesses in the U.S. and minorities own 45% of small businesses in the U.S.

Women of color own 47% of all women-owned businesses.

For every dollar spent at a small business in the U.S., approximately 67 cents stays in the local community.

12.3 million is the number of women-owned businesses in the U.S.

61% of small businesses invest in social media marketing.

Need help managing your social media marketing or any aspects of your business marketing? Encounter Marketing and Public Relations can help you.

Small Business Growth & Survival Statistics

1. Each month an average of 543,000 new businesses are started.

This number comes to over 6.5 million per year. Even though only a small amount of these companies manage to survive in the long term, there is competition out there.

Source: Yahoo

2. In the US, there are 30.2 million small businesses.

99.9% of US businesses are small businesses. Small businesses employ more than 47.5% of the private workforce in the US and accounted for 1.9 million new jobs in 2017. Small businesses are an economic engine and an important part of the economic landscape.


3. Microbu sinesses account for 75.3% of private-sector employers.

Businesses with less than ten employees are the most common.

Source: Blue Corona

4. What is the success rate of small businesses? 50% of them survive five years or more.

The majority of new businesses fail during the first year, the Small Business Association has stated that only 30% of newly founded businesses are likely to fail within the first two years. Additionally, 50% of small businesses are bound to survive five or more years, and 66% would endure throughout the first ten years. Only 25% make it to 15 or more years. The success of a small business depends on the right planning, flexibility, and funding.


5. 1 in 12 businesses closes every year.

Every year 1 in 12 businesses closes and only 4 out of 100 businesses survive past the 10-year mark. According to a US Bank study, 82% of companies fail because of cash flow problems. This emphasizes the need to regularly analyze cash flow statements to make sure you’re on top of it.


6. 50% of all US businesses are operated from home.

Only a few years ago, working from home seemed like an impossible dream. But, with the advancements in technology, operating a business from the comfort of your home is now very common. According to the SBA statistics, 50% of small businesses are home-based, including 60.1% of firms without paid employees. The most common type of these businesses is sole proprietorship.


7. 19% of small business owners work over 60 hours a week.

Being the big boss of a small firm isn’t easy. Small business owners work harder than the average worker. 81% of the respondents in the study conducted by Fundera said they work nights and 89% work weekends. What is more, 70% said they work more than 40 hours a week with 19% working over 60 hours.

Source: Fundera

8. 86.3% of small business owners take a salary of less than $100,000.

The new business statistics from Fundera’s study showed that small business owners work harder but don’t make as much as the traditional CEOs. 86.3% of them take less than $100,000 a year. To compare, the average salary of a traditional CEO is $163,000. More surprisingly, the study revealed that 30.07% of the small business owners don’t even take a salary.

Source: Fundera

9. Popular industries for startups in 2018 included healthcare, e-commerce, technology, marijuana, and maintenance.

Identifying industries that are positioned to grow will give you an advantage when launching a new business. The Fundera survey uncovered the most lucrative industries that are likely to be around in a decade from now. Technology, health, and energy made the top of the list. Real estate, retail, and hospitality are also among the industries that are set to have the most substantial growth in jobs in the future.

Source: Fundera

Small Business Loan Statistics & Financing

10. The average amount for loans backed by SBA was $107,000 in 2018.

The average SBA loan was $417,314, and the average SBA microloan was $13,000. The average SBA loan amount from large national banks was $59,000 and $165,000 from small banks. Generally speaking, small banks lent more money through SBA loan programs than large national banks.

Source: Value Penguin

11. Big banks approved around 26.9% of small business loans.

Small business lending statistics show that with 26.9% approvals of small business loans, this trend reached the highest point post-recession in 2018.

Source: Biz2Credit

12. The average amount of startup capital required by a small business owner is $10,000.

This was confirmed by the Wells Fargo Small Business Index study. The Kauffman Firm Survey, found out that the average amount of small business starting capital is $80,000 a year. Still, 12% of employer firms and one-third of nonemployer firms use no startup capital whatsoever.


13. Still, most home-based franchises can be started with $1,000-$5,000.

A third of small businesses are founded with up to $5,000 of startup capital. These businesses are often home-based franchises. According to the Small Business Administration, another type of business that doesn’t require large investments are micro-businesses like home-based sole proprietorships. These require low upfront investments and can be started with as little as $1,000- $3,000 of capital.


Women-Owned Small Business Statistics

14. 12.3 million is the number of women-owned businesses in the US.

Women are owning their entrepreneurial spirit more than ever. The number of women-owned businesses has increased 31 times from 1972 to 2018. In 1972, only 4.6% of all firms (402,000) were owned by women. Today, this number is 12.3 million, which is 40% of all firms. These businesses employ 8% of the private sector labor force, contributing 4.3% of total revenues.

Source: WBENC

15. In 2017/2018, there was 1,821 new women-owned business per day.

The average number of new businesses owned by women between the years 2002 and 2007 was 714. During the recession and recovery period between 2007 and 2012, this number was 1,143. In the post-recession period, the number of newly founded women-led businesses came to 952.

Source: American Express

16. 1.7 of woman-owned businesses generate $1.2 trillion in revenue.

Women’s revenue contribution has been growing steadily over the years. In 2018, 207,900 of women-led businesses (1.7%) generated more than $1 million. This is a 46% increase over the past eleven years. The total sum adds $1.2 trillion (69%) to the total revenue made by women-led businesses.

Source: WBENC

17. 88% of women-owned businesses generate less than $100,000 in revenue.

According to the small business revenue statistics, firms led by women that make over $1 million in revenue jumped by 46% over the last decade. This would be quite an impressive number, but these businesses make only 1.7% of all women-led companies. These businesses generated $135 billion in revenues, which makes for 8% of total revenues for all women-owned firms.

Source: WBENC

18. There are 2,142,800 Latina-owned businesses.

Latinas own 17% of all women-led businesses. This number has grown by 10% annually between 2007 and 2018 while the annual growth rate for the past year is 7%. These firms generated $51,400 in revenues.

Source: American Express

19. Women of color own 47% of all women-owned businesses.

Based on small business owner statistics, firms owned by women of color grew by 163% in the last decade. According to the American Express report, the main reason for this surge was the prolonged recession-recovery period which enticed women of color to turn to entrepreneurship to earn enough money to live on. As of 2018, women of color make for 47% of women-owned businesses, generate over $386 billion in revenues, and employ 2,230,600 people.

Source: American Express

20. Nearly half of the female business owners are between 45 and 65 years old.

It seems that the aging female bosses work longer. Almost half of all female business owners (48%) are between the 45-65 age range. Female business owners aged 25-44 make for 31% of this group.

Source: American Express

Minority-Owned Small Business Stats

21. Hispanics, Asians, and Native Americans represent 26% of all business owners.

Hispanics are the second largest group of minority small business owners after African American. They make for 14% of the business owners surveyed. Asians and Native Americans represent 8% and 4% of the business owners, respectively.

Source: Guidant Financial

22. Minorities own 45% of small businesses.