Digital Marketing

49 Important Small Enterprise Stats You Have to Know

October 6, 2023

Small companies are the lifeblood of any economic system. Mother-and-pop eating places, nook shops, family-owned outlets, boutique tech companies, and different ventures drive financial progress, foster innovation, and generate employment alternatives.

These companies are the beating coronary heart of the group. They supply important companies and items, including a singular taste to native markets.

2023 continues as an example the significance of small companies as they navigate by way of challenges and seize new alternatives.

On this article, we delve into the nitty-gritty of small enterprise statistics for 2023 and supply insights into their triumphs, tribulations, and traits.

General Small Business Statistics

Small Business Owner Statistics

Industry-Wise Small Business Statistics

Financial Small Business Statistics

Jobs in Small Businesses Statistics

Small Business Marketing Statistics

Small Business Technology Statistics

Small Business Challenges Statistics

Basic Small Enterprise Statistics

Most companies are small — 99.9% of American companies. (SBA, 2023)
Small companies pay 39.4% of the non-public sector payroll. (SBA, 2023)
There are 33 million small companies in america. (SBA, 2023)
From 1995 to 2021, small companies created 17.3 million internet new jobs, accounting for 62.7% of internet jobs created since 1995. (SBA, 2023)
Enterprise house owners primarily go into enterprise as a result of they’re “able to be their very own boss” (28%) and total dissatisfaction with company America (23%). (Guidant Financial, 2023)
Small companies generate 32.6% of recognized export worth. (SBA, 2023)
Small companies make use of 61.7 million People, which equals 46.4% of personal sector workers. (SBA, 2023)
About 38% of small companies use specialised software program of their enterprise operations. (SBA, 2023)

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Small Enterprise Proprietor Statistics

Child Boomers (39.63%) and Gen X (47.20%) make up the vast majority of small enterprise house owners. (Guidant Financial, 2023)

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Females solely personal 43.2% of small companies. Racial minorities personal 19.4% of small companies. (Forbes, 2023)

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Over 70% of small enterprise house owners really feel glad as enterprise house owners, with 37% feeling “very pleased” and 35% feeling “considerably pleased.” (Guidant Financial, 2023)

Trade-Sensible Small Enterprise Statistics

The fastest-growing industries are healthcare and social help. (Forbes, 2023)

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The biggest lower in closures was noticed within the transportation and storage sector, the place the speed of closure fell by 8% from 21% to 13% in 2022, pointing to a development towards enterprise as normal or no less than a brand new regular. (Meta, 2022)
Of small and midsize companies (SMBs) within the motels, cafes, and eating places sector, 35% reported growing their variety of staff. (Meta, 2022)
Respondents in additional conventional face-to-face industries like meals & beverage, restaurant & bar, and retail are extra anxious than these in different industries about sustaining stock/achievement, bouncing again to pre-COVID enterprise ranges with a extra cost-conscious public and money stream disruptions. (Verizon, 2022)

Monetary Small Enterprise Statistics

Startup prices for many small companies are between $250k to $500k (27.3%). The second-highest reported startup prices are between $500k to $1 million (16%). (Guidant Financial, 2023)

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Nearly half of small enterprise house owners use 401(okay) enterprise financing to begin their ventures. Others additionally use money, SBA loans, traces of credit score, and time period and unsecured loans. (Guidant Financial, 2023)
The typical small enterprise proprietor’s wage is $69,579 per yr. (Payscale, 2023)

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Of SMBs globally, 24% reported growing their costs by 20% or extra within the first half of 2022. (Meta, 2022)
Of SMBs reporting will increase, those who reported no less than a ten% improve in value had been additionally more likely to report a rise in prices of no less than 10%. (Meta, 2022)

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Jobs in Small Companies Statistics

Small companies have added over 12.9 million jobs within the final 25 years. (Forbes, 2023)
The trade with probably the most job openings is the training and well being companies trade. (Forbes, 2023)
Roughly 20% of women-led SMBs reported growing their variety of workers within the first half of 2022, and 13% reported lowering their variety of workers, in comparison with 25% and 17% of men-led SMBs, respectively. (Meta, 2022)
Over 80% of US SMBs reported their workforce both elevated or remained the identical within the first half of 2022. (Meta, 2022)
US minority-led SMBs had been extra more likely to report growing their variety of staff (20%) than different SMBs (16%). (Meta, 2022)

Small Enterprise Advertising Statistics

Of small companies within the US, 55% had been promoting on social media in 2021. (Meta, 2022)
Of these small companies promoting on social media, 66% used Fb, whereas 42% used YouTube. (Meta, 2022)
Of all small companies, 28% don’t have an internet site. (Top Design, 2021)
Nearly half of small companies (46%) have in-house workers managing their web sites, and 32% use DIY web site builder software program. (Top Design, 2021)

Small Enterprise Know-how Statistics

Girls-led SMBs reported increased proportions of gross sales made digitally than men-led SMBs at a worldwide degree. (Meta, 2022)
Girls-led SMBs used digital instruments accordingly for marketing-led functions (promoting, speaking instantly with prospects, and promoting items and companies) extra typically than men-led SMBs. (Meta, 2022)
Practically two-thirds of SMBs (63%) on the Fb app generated some proportion of their gross sales previously 30 days by way of digital channels. (Meta, 2022)
Sub-Saharan Africa stands out because the area the place the best proportion of SMBs reported digital gross sales of over 50% (32%). (Meta, 2022)
Over a 3rd of U.S. Black-led SMBs reported that over half of their gross sales had been made digitally (39% of respondents), main all minority teams. (Meta, 2022)
Most respondents say their enterprise has added or upgraded its web connection to a high-speed or high-capacity plan previously yr. (Verizon, 2022)

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44% have added or upgraded community safety companies, and 29% have invested in worker cybersecurity coaching. (Verizon, 2022)
Respondents mostly say their enterprise has added connectivity expertise previously yr to streamline operations (78%). About half say they added applied sciences to attach with present prospects (53%) or purchase new ones (48%). (Verizon, 2022)

Small Enterprise Challenges Statistics

Inflation and high quality of labor are an important issues for small companies in america. (Statista, 2023)

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Girls-led SMBs reported increased proportions of enterprise closures at 23%, versus 17% of men-led SMBs. (Meta, 2022)
Regardless of increased closure charges, women-led SMBs reported higher gross sales efficiency in comparison with men-led SMBs. Roughly 33% of women-led SMBs reported lowering gross sales previously 30 days, relative to 39% of men-led SMBs. (Meta, 2022)
Within the US, 20% of SMBs reported that they had been closed in October 2022. (Meta, 2022)
US minority-led SMBs had been 8% extra more likely to report closure than different SMBs. (Meta, 2022)
31% of US Black-led SMBs reported being closed. (Meta, 2022)

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Practically 9 in 10 respondents (89%) say they’re involved concerning the state of the US economic system, and greater than 4 in 5 say they’re involved about small companies within the US and the worldwide economic system. (Verizon, 2022)
Practically 4 in 5 respondents (78%) say their enterprise has skilled elevated prices in 2021, far exceeding different monetary and personnel challenges. Together with elevated prices, practically half (46%) report declining gross sales, and greater than 1 / 4 (27%) withdrew from money reserves. (Verizon, 2022)
Greater than half of respondents (53%) say their enterprise has skilled operational points sourcing supplies on account of provide chain disruptions previously yr. (Verizon, 2022)
Curiosity in assets for SMBs is usually highest amongst respondents within the development & contracting and meals & beverage industries and lowest amongst these in leisure & recreation. (Verizon, 2022)
Practically 3 in 5 respondents (58%) say they’d discover a web-based community of SMB leaders useful as they carry their enterprise ahead for the remainder of the yr. (Verizon, 2022)
Respondents are broadly concerned with applications supporting small companies, notably free self-paced programs in social media advertising and finance. (Verizon, 2022)