Being an entrepreneur can be one of the most rewarding careers.
With the power of the internet, its now even more possible for almost anyone to be an entrepreneur. But here are some facts and statistics that you should know before getting into the entrepreneurship game.
Entrepreneur Statistics
1. There are 582 million entrepreneurs in the world. (Small Biz Genius)
2. 62% of US billionaires are self-made. (Small Biz Genius)
3. Entrepreneurs who own a home are 10% more likely to start a business than those who don’t. (G2)
4. 22.5% of small businesses fail within the first year. (Small Biz Genius)
5. Only 26% of small business owners said they had a bachelor’s degree. Only 17% went to college, 20% graduated high school but did not go to college, and 5% didn’t graduate high school. (Fit Small Business)
6. More than 35% of entrepreneurs work 40 hours per week. (Fit Small Business)
7. 81% of American small-business owners work overtime. (Fortunly)
8. The average working hours a week for an entrepreneur is 66 hours. (Entrepreneur)
9. Advanced manufacturing and robotics tech startups are enjoying growth rates of 189.4%. (Fortunly)
10. Entrepreneurs are 125% more successful if they’ve worked previous jobs in the industry they’re currently doing business in. (Fit Small Business)
11. The top motivation for someone to open their own business is that they’re ready to become their own boss. (Finances Online)
12. The best industries to start a business in 2020 are technology, health, energy, media, and consumer retail. (Finances Online)
13. The number of health, beauty, and fitness startups increased by 34% in 2018. (Fortunly)
14. In 2018, most small businesses are LLCs (35%), S-corporations (33%), corporations (19%), sole proprietorships (12%), and partnerships (2%). (Finances Online)
15. 33% of small business owners feel confident about their future. (Finances Online)
16. In their role as an entrepreneur, 53% of small business owners ranked their happiness at 9 or more. (Finances Online)
17. 82% of startup funds come from the entrepreneur, or their family and friends. (Finances Online)
18. 95% of entrepreneurs have a bachelor’s degree. (Finances Online)
19. 5 million business owners are veterans of the US armed forces. (Finances Online)
20. 42% of self-employed professionals have no retirement plans. (Finances Online)
21. Out of approximately 7 billion people worldwide, 400 million are entrepreneurs. (Entrepreneur)
22. 2 of out 3 people worldwide think that entrepreneurship is a good career choice. (Entrepreneur)
23. 36% of entrepreneurs started their business during college. (Entrepreneur)
24. 82% of startups are self-funded, 41% are from loans and 24% from friends and family. (Entrepreneur)
25. Software is the most popular industry to start a business for entrepreneurs. (Entrepreneur)
26. The number of coworking spaces has grown 89% in the last 12 months. (Entrepreneur)
Entrepreneur Small Business Statistics
27. About 543,000 new businesses are started each month. (G2)
28. Only 50% of businesses with employees survive five years. (Fortunly)
29. Small businesses in the U.S. employ 57 million people. (G2)
30. San Francisco and Silicon Valley are the epicenter of entrepreneurship, home to 13.5% of all global startup deals. (Fortunly)
31. Over 99% of U.S. employers are small business owners. (G2)
32. 74% of tech startups fail because they scaled too fast. (G2)
33. There were 30.7 million small businesses in the U.S. in 2019. (Fortunly)
34. 82% of businesses fail because of cash flow problems. (G2)
35. Over 50% of small businesses have a Chief Financial Officer. (G2)
36. 64% of American small business owners are currently hiring. (Fortunly)
37. Having two founders increases the odds of success for a small business as opposed to having one. (G2)
38. 25% of small companies with 500 employees or less are more than 20 years old. (G2)
39. The #1 reason why businesses fail is there’s no market need. (Small Biz Genius)
40. Roughly 80% of small businesses survive the first year. (Fit Small Business)
41. 79.7% of U.S. small businesses employ only the founder. (Fortunly)
42. More than 50% of companies started in a garage or basement. (Fit Small Business)
Entrepreneur Demographic Statistics
43. Male entrepreneurs own 14.8 million businesses in the US. (Finances Online)
44. A 60-year-old startup founder is three times more likely to succeed than a 30-year-old founder. (Fortunly)
45. Female entrepreneurs own 9.9 million small businesses in the US. (Finances Online)
46. Japan is the least most entrepreneurial country with only 1.3% of natives being entrepreneurs. (Entrepreneur)
47. Entrepreneurship in women grew by 114% between 1997 and 2017. (G2)
48. 69% of American entrepreneurs start their business at home. (Finances Online)
49. In 2016, there were 25 million Americans who were starting or already running their own business. (Small Biz Genius)
50. 15 million Americans are self-employed full-time. (Fit Small Business)
51. 60% of people who start small businesses are between the ages of 40 and 60. (Small Biz Genius)
52. 30% of all new entrepreneurs in the US are immigrants — up from 13.3% in 1996. (Finances Online)
53. 53% of American startups have at least one woman in an executive position. (Fortunly)
54. 35% of entrepreneurs are 50-59 years old, 25% are 40-49 years old, and 18% 60-69 years old. (Finances Online)
55. Studies show middle-aged men start the most successful businesses. (Small Biz Genius)
Entrepreneur Monetary Statistics
56. Money is the #1 reason people become entrepreneurs. (Entrepreneur)
57. $10,000 is the average startup capital. (Finances Online)
58. Women-owned businesses generate over $1.7 trillion in revenues. (Finances Online)
59. The median income for a small business owner is $59,000. (Finances Online)
60. ByteDance, the maker of Toutiao, is the most highly valued startup company in the world, at $75 billion. (Fortunly)
61. 58% of entrepreneurs started with a minimum of $25,000. (Finances Online)
62. The average short-term business loan amount is $20,000. (Fit Small Business)
63. 40% of small businesses are profitable, 30% break even, and 30% lose money continuously. (Finances Online)
References
- smallbizgenius.net/by-the-numbers/entrepreneur-statistics/ (Small Biz Genius)
- https://fitsmallbusiness.com/entrepreneurship-statistics/ (Fit Small Business)
- https://financesonline.com/entrepreneurship-statistics/ (Finances Online)
- https://www.entrepreneur.com/article/285079 (Entrepreneur)
- https://learn.g2.com/small-business-statistics (G2)
- https://fortunly.com/statistics/startup-statistics/#gref (Fortunly)
