Entrepreneur Statistics

Aren’t you tired of having to do what someone says always? Isn’t there any way to do what you cherish to do? To be in charge of what you want to do? Yes, there is. Maybe, you would have guessed it by now. Yes, the answer is Entrepreneurship. Have you ever dreamt of becoming an entrepreneur someday? Or do you have any idea how many entrepreneurs are there? Certainly, millions, maybe even billions.

Entrepreneurs are those who use the capital they have to beget more capital. Some succeed, some fail. But what is more important is the fact that these people never give up on their dream. They always have a positive attitude and are ready to take the challenge to the outer world. In this article, we shall explore some of the interesting entrepreneurship statistics and explore where this sector is heading towards.

On this page, you’ll find:

• General Entrepreneurship Stats
• Why do Entrepreneurs Choose to Start Their Own Business?
• Marketing Approach of Entrepreneurs
• Entrepreneurship Demographics
• Benefits and Challenges in Entrepreneurship

Key Entrepreneur Statistics

Here are the top stats from the plethora of figures we have collected for you:

• In the U.S., 62% of billionaires are self-made. (Wealth-X)

• About 15 million Americans are full-time self-employed. (FreshBooks)

• 55% of entrepreneurs say their biggest motivation for starting their own business was the idea of being their own boss. (Guidant Financial)

• 39% of entrepreneurs wanted to follow their passion. (Guidant Financial)

• During the COVID-19 pandemic, around 60% of third-party online stores/marketplaces saw an increase of 64% in sales. (UNCTAD)

• Amid the pandemic, 28% of small businesses are selling more, of which 94% of them credit COVID-19 for the sales increase. (Quickbooks)

• Veterans in the U.S. own about 351,237 businesses. (SBA)

• In the U.S., around 50% of businesses are home-based. (Fundera)

• Control over one’s career is the biggest benefit of being self-employed for 43% of employees. (Fresh Books)

• Lack of capital is the biggest challenge for 33% of small business owners. (Guidant Financial)

General Entrepreneurship Stats

Entrepreneurship is the foundation of the U.S. economy. Entrepreneurship is all about identifying a need and coming up with a product or a service to meet it. Yesterday’s small businesses have become today’s large corporations. The development and growth of small businesses ensure a strong economic future. Let us look into some general entrepreneurship statistics of the U.S.

• In the U.S., 62% of billionaires are self-made. (Wealth-X)

• About 15 million Americans are full-time self-employed. (FreshBooks)

• By 2020, 27 million American workers said they were considering a shift to self-employment. (FreshBooks)

• In the U.S., there are 31.7 million small businesses, accounting for 99.9% of all businesses. (SBA)

• In 2019, small businesses in the U.S. generated 1.6 million new jobs. (SBA)

• There are 592,574 manufacturing companies considered to be small businesses in the U.S. (SBA)

• As of August 2020, in the U.S., more than 163,000 businesses were closed due to COVID-19, of which 60% are permanently shut down. (CNBC)

• For the first time in a decade, 53% of small firms reported an increase in revenues. (NSBA)

• In the U.S., about 7.3 million people are not part of the labor force but want to be employed. (U.S. Bureau of Labor Statistics)

• It takes 4 days to start a business in the U.S. (The World Bank)

Why do Entrepreneurs Choose to Start Their Own Business?

Starting your own business is definitely exciting. An entrepreneur is not someone who is just a boss, he/she has seen an opportunity to address a demand that is currently unsatisfied in society. People across the world have started to appreciate the benefits of entrepreneurship. Now, let us look into some top stats on why people want to start their own businesses.

• 55% of entrepreneurs say their biggest motivation for starting their own business was the idea of being their own boss. (Guidant Financial)

• 39% of entrepreneurs wanted to follow their passion. (Guidant Financial)

• 28% of people admit that COVID-19 accelerated their plans to start their own business. (Quickbooks)

• 25% of entrepreneurs are dissatisfied with the American corporate and start their own business. (Guidant Financial)

• Due to major life events, 4% of entrepreneurs want to start their own business. (Guidant Financial)

• Individuals who own a home are 10% more likely to become entrepreneurs than those who do not. (Fundera)

• Technology, health, energy, media, and consumer retail are the best industries to start a business in 2018. (Inc.)

• Industries with the most number of small business start-ups in 2020 were business services (13%), retail (13%), construction and contracting (12%), residential and commercial services (9%), and food/restaurant (9%). (Guidant Financial)

• Home is where 69% of American entrepreneurs start their business. (Small Business Trends)

• Small businesses are successful when having two founders than one. (Inc.)

Marketing Approach of Entrepreneurs

To survive and remain relevant in today’s entrepreneurial world, one must know the importance of using digital marketing strategies. Businesses need to complete marketing activities to make their product and services available to consumers. The goal of marketing is to attract as many customers as possible so that the product or service succeeds in the marketplace. Let us hop into some entrepreneurial marketing statistics.

• During the COVID-19 pandemic, around 60% of third-party online stores/marketplaces witnessed an increase of 64% in sales. (UNCTAD)

• Amid the pandemic, 28% of small businesses are selling more, of which 94% of them credit COVID-19 for the sales increase. (Quickbooks)

• For every small business, the top marketing objective is to drive sales. (Keap)

• 92% of business owners think that maintaining a website is the most effective digital marketing technique. (Ironpaper)

• 89% of entrepreneurs think that search engine optimization is the most efficient digital marketing technique. (Ironpaper)

• Social media management is considered the primary marketing tool by 49% of small business owners. (Keap)

• The marketing activities of 47% of small business owners are handled by themselves. (Clutch)

• In 2019, 29% of small business owners didn’t utilize any form of digital marketing. (Keap)

• Small business product/service offerings are first sought out by 70-80% of consumers. (Blue Corona)

• Every week, 50% of entrepreneurs spend 2 hours on marketing. (Ironpaper)

Entrepreneurship Demographics

Thanks to the work of entrepreneurs, every day, new businesses are created. The COVID-19 pandemic might have put a damper on the global economy. But given the resilience of entrepreneurs, they are bound to outlast the global pandemic. Now, let us have some look into the statistics for entrepreneur demographics that will throw light on what it takes to beat the odds and how to achieve success.

• Veterans in the U.S. own about 351,237 businesses. (SBA)

• In the U.S., around 50% of businesses are home-based. (Fundera)

• 35% of small business owners belong to the most common age range, which is in the 50-59 age bracket. (National Business Capital & Services)

• Family-owned businesses account for 31% of firms with employees. (SBA)

• In the U.S., about 1 in 20 businesses with employees are franchises. (SBA)

• 62% of men are likely to become entrepreneurs, while 38% of women are likely to become entrepreneurs. (Brandon Gaille)

• Female entrepreneurs own about 11.2 million businesses in the U.S. (SBA)

• Between 2014 and 2019, over $1.9 trillion in revenues was generated by female-owned businesses. (American Express)

• A year-on-year increase of 4% is seen in female business owners. (Guidant Financial)

• Around 2.7% of all businesses are owned by African-American women. (Fit Small Business)

Benefits and Challenges in Entrepreneurship

Being an entrepreneur means bringing unique, creative, innovative, and new ideas into this world. Despite all the positive entrepreneurship stats that are listed in the article, being an entrepreneur can still be a struggle. 90% of the businesses fail within 5 years of their launch. Now, let us look into some of the benefits and challenges that an entrepreneur has to face.

• Control over one’s career is the biggest benefit of being self-employed for 43% of employees. (Fresh Books)

• 54% of self-employed entrepreneurs say they are able to make more money. (Fresh Books)

• 45% of entrepreneurs can connect to their businesses from anywhere in the world through mobile devices. (Fresh Books)

• 44% of entrepreneurs are able to perform a much wider variety of tasks daily. (Fresh Books)

• 39% of entrepreneurs work for a short time, but say they are more productive. (Fresh Books)

• Lack of capital is the biggest challenge for 33% of small business owners. (Guidant Financial)

• Due to the COVID-19 pandemic, 4.6 million people weren’t able to find jobs in December 2020. (U.S. Bureau of Labor Statistics)

• Due to the COVID-19 pandemic, 69% of small businesses had to increase their efforts on marketing. (Small Business Trends)

• 43% of small businesses in the U.S. had to close because of the COVID-19 lockdown period. (PNAS)

• 17% of small businesses can be closed because of a two-month loss in revenues. (Fit Small Business)

Conclusion

Every industry has small businesses and ambitious enterprises. Apart from immensely contributing to the overall revenue of a country, they also have a beneficial effect on the workers themselves. Across the world, small businesses will continue to be the foundation of all countries. If you are an existing entrepreneur or an aspiring entrepreneur, gear up and be prepared to operate in this highly competitive world. Keep your spirits high and occupied. With this, I conclude this article on entrepreneurship statistics.