As civilization advances, becoming an entrepreneur has become a dream of every individual who has the entrepreneurship mindset. You need some entrepreneurship statistics that help you decide where you want to go in future when it comes to your business.
If you are looking to start a business and looking to emerge as an entrepreneur, then here are 218 entrepreneurship stats you must pay attention to.
It appears that the most challenging times of the COVID-19 pandemic and the Great Resignation are now behind us. Many hopeful entrepreneurs and small business owners are feeling optimistic about the future. In fact, nearly 58% express being either “somewhat” or “very” optimistic.
While the future of entrepreneurship is inherently uncertain, there are significant opportunities for business owners to continue transforming how they create, purchase, and sell products.
218 Entrepreneurship Statistics
Here are some important statistics to be aware of regarding the state of entrepreneurship in 2023. If you’re in a hurry, feel free to jump to the specific information you’re looking for.
How many entrepreneurs are there in the US?
Around 31 million entrepreneurs operate in the United States, constituting 16% of the workforce when compared to the total working population.
What percentage of entrepreneurs have college degrees?
Guidant Financial provides insights into the educational backgrounds of entrepreneurs, revealing the following percentages:
● 31% of entrepreneurs hold an associate’s degree.
● 17% of entrepreneurs have earned a bachelor’s degree.
● 18% of entrepreneurs possess a master’s degree.
● 4% of entrepreneurs hold a PhD.
While formal education is valuable, it’s not the sole path to entrepreneurship. Interestingly, 30% of entrepreneurs have achieved business success with just high school diplomas.
218 Stats to know about Entrepreneurship Statistics
Stats about Entrepreneurship Landscape:
1. Entrepreneurship rates in the United States have been on the rise for the past 19 years.
2. In 2022, nearly 5.0 million new businesses were registered, marking a 42% increase from pre-pandemic levels.
3. A significant 66% of small businesses in the US are profitable.
4. About 54% of small business owners feel that the pandemic still impacts their business.
5. In 2022, 51% of entrepreneurs plan to increase their staff.
6. A notable 41% of entrepreneurs plan to expand or remodel their business this year.
7. The primary motivation for opening one’s own business in 2022 is dissatisfaction with corporate America.
8. For 47% of people, becoming their own boss is the main reason they became entrepreneurs.
9. Small businesses in the U.S. provide employment for 61.7 million people.
10. A substantial 84% of small business owners report working more than 40 hours per week, with 19% working more than 60 hours.
11. The time required to start a business varies globally: one day in New Zealand, two days in Canada, three days in Australia, five days in the UK, and six days in the US.
12. A significant 74% of companies actively invest in social media marketing.
13. Nearly 64% of companies invest time in SEO.
14. The most popular industries for small business owners are retail and food.
15. A high 78% of small business owners state that their businesses are profitable.
16. Almost 543,000 new businesses are created in the U.S. each month.
17. One-quarter of entrepreneurs report having difficulty finding qualified employees.
18. Only 4% of small business owners have a doctorate degree, while 10% have a professional degree.
19. 22% of entrepreneurs in the U.S. start a business because they’re not yet ready to retire.
20. 31% of U.S. entrepreneurs start a business to pursue a passion.
21. Communication is considered the most important skill by 54% of entrepreneurs, followed by problem-solving (53%) and time management (48%).
22. More than half (58%) of entrepreneurs say they work irregular or odd hours.
23. Serial entrepreneurs run up to three businesses throughout their lives.
24. In 2022, 39% of small business owners plan to invest in digital marketing.
25. Traditional marketing is on the radar for 23% of small business owners in 2022.
26. 29% of entrepreneurs found hiring in 2022 to be “very difficult,” with only 1% stating it was “very easy.”
27. Weekly business applications have increased by 31% since 2019.
28. In the next 12 months, 23% of small businesses starting will have 100% remote workforces.
29. A significant 87% of small businesses opening in the next 12 months will primarily be online or a combination of online and offline.
Stats about Entrepreneurship Financial Statistics:
30. 40% of crowdfunding campaigns are raising funds for business and entrepreneurship ventures.
31. A substantial 86.3% of small business owners have a salary lower than $100,000, with 30% not paying themselves a salary at all.
32. More than half of small businesses (52%) are “very concerned” about inflation.
33. The top priority for small businesses in 2022 is increasing online sales.
34. 43% of small businesses plan to increase their prices in 2022.
35. 13% of entrepreneurs use rollovers as business startups to finance their businesses.
36. The most significant challenge for small business owners and aspiring entrepreneurs is the lack of cash flow.
37. The average amount of startup capital needed by a small business owner is $10,000.
38. 37% of small business owners rely on cash to fund their businesses.
39. The second most common form of business funding is from 401K funding, which is most popular among 13% of small business owners.
40. 10% of small business owners and aspiring entrepreneurs obtain financing from friends and family.
41. The top 3 challenges small business owners face are recruiting, inflation, and insufficient capital or cash flow.
42. The average CEO makes an annual salary of $164,028/year.
43. The average base salary of small business owners is $69,119/year.
44. The leaders in the global crowdfunding market share are the US, the UK, and Canada.
Stats about Entrepreneurship Demographics:
45. More than 54% of entrepreneurs in the U.S. hold a bachelor’s degree or higher.
46. In the U.S., 5.2 million small business owners identify as people of color.
47. As of 2020, there are approximately 274 million women entrepreneurs.
48. There are 5.9 million entrepreneurs in the U.S. who are under the age of 35.
49. 6% of American small businesses are veteran-owned.
50. In the U.S., 6.3 million small business owners were born outside the US.
51. In 2020, California had the highest number of entrepreneurs in the US.
52. People of color own 29.3% of businesses in the U.S.
53. Women constitute 46% of black entrepreneurs.
54. A significant 92% of entrepreneurs do not regret launching their businesses.
55. Black owners account for 26% of all new microbusinesses.
56. Half of the surveyed adults chose to start a business due to difficulties in finding well-paying jobs.
57. Gen-X’ers make up 46% of aspiring entrepreneurs.
58. 45% of aspiring entrepreneurs belong to the boomer generation.
59. New business owners in the U.S. are becoming younger, with the typical age dropping from 38 to 34 years old since 2017.
60. Since 2017, the number of self-employed college graduates has decreased by 8%.
61. The majority of U.S. business owners are white, holding an 80% stake in businesses overall.
62. Asian entrepreneurs manage 10% of all U.S. businesses, making them the second-largest racial or ethnic group.
63. The mean age of founders for the fastest-growing new ventures is 45.
64. Between 1996 and 2018, native-born business founders decreased, while immigrant entrepreneurs more than doubled.
65. Solo founders are 54% less likely to close their business.
66. People of color own 20% of all U.S. businesses.
Stats about How Entrepreneurs Work:
67. 82% of small businesses have implemented workplace changes in response to the COVID-19 pandemic.
68. The vast majority of business owners (74%) self-reported as either somewhat happy or very happy.
69. 75% of small businesses provide employee benefits.
70. 42% of gig workers have transformed their side gigs into full-fledged businesses.
71. 69% of American entrepreneurs kickstart their businesses from the comfort of their homes.
72. According to social entrepreneurs, the key factors in making remote work sustainable are the introduction of digital collaboration platforms (39%) and flexibility in how work is approached (36%).
73. Social entrepreneurs believe that the most crucial action to transform work is to build an organizational culture that promotes growth (45%).
Stats about Emerging Entrepreneurship Statistics:
74. 24 million Americans aspire to become self-employed by 2021 but encounter barriers to taking the leap.
75. Entrepreneurs prioritize flexibility 5 times more than the potential to make money.
76. Entrepreneurs commonly attribute their decision to start a business to a readiness to be their own boss, followed by a desire to pursue their passion.
77. 96% of self-employed individuals have no desire to return to a ‘regular job.’
78. 1 in 5 entrepreneurs either owns or manages a business with family members.
79. 61% of self-employed people would be content with their accomplishments if their career were to end today.
80. Serial entrepreneurs run up to three businesses throughout their lives.
81. Control, fulfillment, and finances emerge as the top three drivers for the next wave of self-employed professionals.
82. 88% of self-employed professionals focus on smaller and more integrated services.
83. Employees currently working at small companies are more inclined to start their own business compared to those employed at larger companies.
84. In 35 economies, over half of adults express the desire to start a business to make money due to job scarcity.
85. The U.S. tops the list for having the best environment or ‘ecosystem’ to nurture entrepreneurs, followed by Switzerland and then Canada.
86. When questioned about control over their careers, 22% of entrepreneurs appreciate the flexibility to choose when or where they work.
87. 1 out of 5 people hasn’t ventured into entrepreneurship because of loyalty to their current company.
Stats about Entrepreneurship Small Business Statistics:
88. A small business is defined as having fewer than 500 employees.
89. The majority of small businesses have fewer than 100 employees.
90. There are 30.7 million small businesses in the U.S.
91. From 2000 to 2018, small businesses created 9.6 million new jobs.
92. 44% of small business owners belong to the Gen X age group, ranging from 39 to 54 years old.
93. Only half of small businesses are estimated to survive for 5 years or more.
94. Since 2019, there has been a 27% increase in people who are dissatisfied with corporate America and want to start their own business because of it.
95. 32% of owners say the lack of capital or cash is the biggest challenge to running a business.
96. The most popular small business industries are retail and business services.
97. 83% of small business owners make less than $100,000 a year, while 30% take no salary.
Stats about Female Entrepreneurship Statistics:
98. In 2019, women in America initiated an average of 1,817 new businesses per day.
99. There are 231 million women worldwide either starting or managing their own businesses.
100. Globally, women are more inclined to own sole proprietorships than men.
101. Female entrepreneurs in the U.S. earn 28% less than their male counterparts.
102. 38% of female business owners utilized cash to kickstart their businesses.
103. Women of color possess half of all female-owned businesses in the U.S.
104. The growth rate of female “sidepreneurs” exceeded almost twice the overall growth of female entrepreneurship.
105. Retail stands out as the most popular industry for women-led small businesses.
106. In 2019, female-owned businesses earned an average of $142,900, in contrast to $474,900 for all privately held businesses.
Stats about Entrepreneurship Success:
107. A startup founder at the age of 50 is 2.8 times more likely to establish a successful startup compared to a 25-year-old founder.
108. The top three skills that business owners believe are crucial for success are communication, problem-solving, and time management.
109. Previous career experience in a specific industry can contribute to greater success.
110. Entrepreneurs attribute their success to qualities like determination, risk-taking, and vision.
111. The revenue of small businesses is unaffected by whether or not the owner holds a college degree.
112. The top 3 global cities for venture capital deals are San Francisco, New York, and London.
113. 74% of small and medium business owners are willing to take significant risks to ensure success.
Stats about Entrepreneurship Failure Rates:
114. 28% of aspiring entrepreneurs either lack the cash to invest or need to pay down debt before venturing into self-employment.
115. 35% of aspiring entrepreneurs are concerned about facing inconsistent income, while 27% have yet to develop a fully-fledged business plan.
116. When examining VC-backed companies, 42% of founders attribute failure to the inability to find market fit, while 29% state that they ran out of money.
117. According to two-thirds of owners, the first year in business is the most challenging.
118. 65% of owners identified financial issues, such as cash flow visibility or access to capital, as a reason for failure.
119. The percentage of people who would refrain from starting a business due to fear of failure is the lowest in the Republic of Korea (7%), followed by Switzerland, the Netherlands, and Italy.
120. Failed entrepreneurs are more likely to find success in their second attempt.
Stats about Small Business Entrepreneurship and COVID-19:
121. 68% of owners express significant concerns about the impact of COVID-19 on their businesses.
122. Across the U.S., approximately 26% of small businesses (2 million) with fewer than 250 employees fall into the immediate risk category.
123. 41% of startups worldwide have three months or less of cash runway left.
124. 1 in 8 startups has witnessed an increase in revenue since the onset of COVID-19, particularly in B2C companies.
125. 56% of minority small-business owners hold optimistic views about the economy post-COVID-19.
126. Despite COVID-19, two-thirds of teens would still contemplate starting a business or becoming entrepreneurs in the future.
127. On average, employee counts have decreased by 40%.
128. 43% of businesses are temporarily closed.
129. The median business possesses less than one month of cash on hand.
130. 1 in 5 small businesses are not currently affected by the outbreak, but 77% anticipate that to change if COVID-19 spreads.
131. Since the start of the crisis, North American companies have experienced the most significant reduction in headcount (84%), followed by Europe (67%) and Asia (59%).
Stats about Entrepreneur Tips from Experts:
132. Entrepreneurship thrives on a genuine passion for the work at hand. If your heart isn’t fully invested, your journey may have limitations. Prioritize honest self-reflection and allow room for adaptation as you grow – Jaime Schmidt, Founder of Schmidt Naturals.
133. Set aside your ego and take a moment to genuinely consider someone else’s idea, even if you firmly believe in the superiority of your own – Julie Rice, SoulCycle Co-founder.
134. It’s about having a product of such exceptional quality that it draws people back for more – Daniel Lubetzky, KIND Founder and CEO.
135. It took me a while to grasp, but the advice was to seek assistance and acknowledge that I don’t know everything – Chip Wilson, Lululemon Founder.
136. As an entrepreneur, you craft your own destiny. The more effort you invest, the greater the likelihood of success. Passion, a willingness to take risks, and a continuous awareness of opportunities are essential – Ahmed Al-Shaabi, MEMBCO.
137. When you truly believe in your product, you’re prepared to face skeptics and persist through challenges – Ariana Huffington, Founder and CEO of Thrive Global.
138. Just because you hold the position of CEO, don’t assume you’ve reached the pinnacle. Constantly enhance your learning, refine your thinking, and adapt your approach to organizational matters – Indra Nooyi, CEO of PepsiCo.
Stats about Top Entrepreneurship Stats:
139. 55% of people start a business because they want to be professionally independent.
140. Personal funds are the main source of funding for 77% of entrepreneurs.
141. Entrepreneurs work 52 hours a week.
142. 48% of entrepreneurs are happy.
143. 25% of entrepreneurs are struggling to find qualified employees.
144. The average startup capital is $10,000.
145. The median income of an entrepreneur is $59,000.
146. Female entrepreneurs own 9.9 million small businesses in the US.
147. A staggering 99.9% of the millions of companies in America are small businesses.
148. 83.1% of business owners started their companies from scratch
Stats about Key Entrepreneurship Stats:
149. 55% of individuals embark on the entrepreneurial journey because they desire professional independence.
150. Personal funds serve as the primary source of funding for 77% of entrepreneurs.
151. Business failure rates have been on a decline for 7 years.
152. In New Zealand, launching a business takes just one day.
153. A total of 51.6% of enterprises are ‘homegrown’, and 60.1% of firms without employees are home-based.
154. Among the industries best suited for small businesses, Business Services and Retail lead the way with 13% rates each, as entrepreneurship stats indicate.
155. More than half of respondents in a recent Small Business Trends Alliance report seek independence while 39% say they want to dedicate their lives to pursuing their passion – starting their own business.
156. Entrepreneurship data also reveal that 25% become entrepreneurs because the opportunity presented itself, and another 25% did it because they were displeased with corporate America.
157. One-third or 34% are supported by bank loans, 16% borrow money from their family, and 11% rely on other sources.
158. Since 1977, the rate at which businesses go under has dropped by 30%, as entrepreneur stats show.
159. Universally known as a small venture, the Construction and Contracting industry ranks second with 12%, followed by the Food and Restaurant industry (9%), and Residential and Commercial Services (9%).
Important Statistics on Entrepreneurs:
160. 31% of entrepreneurs have successfully turned their dreams into reality with just an associate degree.
161. 30% have achieved this with a high school degree, a category that includes notable figures like Bill Gates. According to entrepreneurial facts, 39% of entrepreneurs have completed BA, MA, or Ph.D. studies.
162. Entrepreneurs with previous industry experience are 125% more likely to achieve success.
163. Entrepreneurs dedicate 52 hours per week to their work.
164. 63% of entrepreneurs work longer hours than the average employee, despite the belief that adhering to the standard 40-hour workweek could be more productive.
165. A substantial 48% of entrepreneurs report feeling happy.
166. Statistics on entrepreneurs reveal that almost half of owners consider themselves happy, with 28% feeling somewhat happy, and 10% expressing a neutral stance between happiness and unhappiness.
167. The percentage of dissatisfied entrepreneurs is as low as 13%.
168. The average small business loan backed by the SBA amounts to $107,000.
169. For mid-term loans, the support is approximately $110,000, while for short-term loans, it’s around $20,000.
170. The positive news is that if you need equipment, loans cover 100% of the value of the equipment.
171. 59% of small-business owners utilize loans for business expansion.
172. Additionally, 43% require funding to cover operating costs, while 26% plan to use the money to refinance existing loans.
173. 25% of entrepreneurs are struggling to find qualified employees.
174. A quarter of entrepreneurs cannot find skilled staff, and 39% report having job positions they cannot fill.
175. According to entrepreneurial statistics, 35% of job openings seek qualified or skilled staff, while 15% are for employees without specific skills.
176. 70% of entrepreneurs use their personal funds to handle financial difficulties.
177. Despite the availability of funding for micro and small enterprises, a total of 67% of owners use their own money to manage potential financial difficulties.
178. 39% of entrepreneurs don’t mind getting a loan to deal with a critical financial issue, while 33% decide to cut staff or downsize operations to overcome financial difficulties.
179. A concerning aspect in entrepreneurship statistics is that 28% of them simply ignore their obligations.
180. 68% of small firms have outstanding debt.
181. A great majority of small firms are in debt, with 55% owing less than $100,000, and 37% owing between $100k and $1 million.
182. Entrepreneur data also reveals that 9% of owners have outstanding debt higher than $1 million.
183. The average startup capital amounts to $10,000.
184. According to a recent survey, 64% of small enterprises commenced their journey with a $10,000 capital.
185. Another survey highlights that 58% of entrepreneurs initiated their business with no more than $25,000.
186. 98.6% of manufacturing companies are small enterprises.
187. Most manufacturing companies in the US are led by entrepreneurs, and 75% of them employ up to 20 persons.
188. An interesting observation here is that 11.6% of the economic output and 8.5% of the labor force were produced by the manufacturing sector.
189. The best indicator for entrepreneurial success, however, is that this sector contributed $2.38 trillion to the national economy in 2018.
190. The median income of an entrepreneur is $59,000.
191. 40% of small enterprises are profitable, one-third break-even, and another 30% lose money all the time.
192. Female entrepreneurs own 9.9 million small businesses in the US.
193. In the entrepreneurial space, women do operate as leaders. They are not exactly rubbing shoulders with men who own 14.8 million small enterprises, but they are represented with a solid 33.4%.
194. For every 100 working-age females, there are around 8 small enterprises owned by women, as female entrepreneurship statistics show.
195. 49% of entrepreneurs handle marketing on their own.
196. More than half (55%) are certain that their marketing efforts are effective, while 33% say they don’t know.
197. For another 22%, it is hard to find the time and resources for marketing, and out of those who do find the time, 49% use social media.
198. 8 out of 10 small businesses survive the first year.
199. According to US entrepreneurship statistics, an incredible 79.9% of small enterprises survive their first year.
200. The survival rate of roughly half of all startups in their first five years is at a satisfactory level, and around one-third survive for at least 10 years or longer.
201. Successful business starters have a 30% success rate in their next endeavors.
202. A recent study shows that people who were successful in starting a business the first time around have a 30% higher chance of being successful the second time.
203. Entrepreneurship statistics reveal that, in comparison to first-time successful entrepreneurs, failures have a 20% higher probability of succeeding.
204. A remarkable 99.9% of the millions of firms in America are small businesses.
205. There are approximately 30.2 million small businesses in the US, with an additional half a million starting every month, indicating a booming entrepreneurship scene. These small businesses provide jobs for 58.9 million employees.
206. On an annual basis, about 2 million new jobs open up, and, last but not least, 47.5% of the entire US workforce is engaged in small enterprises, according to US entrepreneurship statistics.
207. Entrepreneur demographics reveal that the majority of entrepreneurs in the US are older than 50, with 44% belonging to Generation X, while 41% are baby boomers.
208. Millennials, on the other hand, make up 12% of the entrepreneurship community, as indicated by entrepreneur facts.
209. The number of entrepreneurs in the US is around 15 million, with a tendency to rise even higher.
210. According to estimates, by the end of 2020, a whopping 27 million Americans will leave their full-time jobs to become full-time self-employed.
211. 83.1% of business owners started their companies from scratch.
212. The percentage of entrepreneurs who purchased their business is significantly lower at 11.3%, while 4.4% received their business as a present or via transfer of ownership.
213. The GEDI index is highest in America at 86.80, ranking the country at the top position for supporting entrepreneurship, according to entrepreneurship statistics.
214. 33% of average Americans are hopeful about the political climate.
215. Entrepreneur statistics indicate one-third of US entrepreneurs feel confident about the political climate in the country.
216. A firm 27% are very confident, 21% are neutral, and 19% are not very confident.
217. America’s billionaires earned their fortunes on their own, or at least 62% of them. Interestingly, almost all of them started off as entrepreneurs.
218. Research further indicates that 18% of billionaires in the US acquired their status based on their own hard work but with a little bit of help from inheritance.
Final Thoughts
Starting an entrepreneurship journey brings about freedom, purpose, flexibility, and, most importantly, the chance to leave a lasting legacy. However, it’s a career path fraught with unexpected turns, some of which, if not addressed promptly, may lead to failure.
Entrepreneurship statistics offer compelling proof that throughout history, entrepreneurs have been the doers, the believers, and the game-changers. They are individuals who recognize that life is too short to be pursuing someone else’s dream.
Adapt your business as the world evolves. There’s no guarantee that mistakes, obstacles, or external factors won’t arise. Particularly during crises, your startup’s growth or business plans may have already faced setbacks for the time being.
Pay attention to the shifts in your startup’s industry and find ways to align with what your customers are seeking. Always make sure your startup is adequately covered to ensure the safety of you and your team with insurance designed for changing circumstances.
We’ll keep sharing pertinent data on the state of entrepreneurship as new research continues to surface.
Frequently Asked Questions (FAQs)
Why do entrepreneurs fail?
Numerous entrepreneurs harbor high expectations, while some struggle to secure the appropriate funding. A few make poor partnership choices, and some fail to employ effective marketing strategies.
However, the primary reason for the majority of failures is a lack of business acumen. While they may comprehend their business idea well, they often overlook how the market perceives it. They simply fail to grasp the uncontrollable and unpredictable nature of innovation.
What are the 7 characteristics of entrepreneurs?
Entrepreneurs appear to have a unique set of skills – a blend of genius, considerable perseverance, and a touch of pure luck. Here are some adjectives that aptly describe successful entrepreneurs:
1. Self-motivated
2. Passionate
3. Hard-working
4. Resourceful
5. Positive
6. Confident
7. Tenacious
What are the 4 types of entrepreneurship?
Here are the 4 types of entrepreneurship:
● Small Business Entrepreneurship (describes anyone who runs their own business);
● Scalable Startup Entrepreneurship (referring to Silicon Valley and venture investors);
● Large Company Entrepreneurship (focused on sustaining innovation, offering new products that are variations of their core products);
● Social Entrepreneurship (focus on making the world a better place and can be nonprofit, for-profit, or hybrid).
Hey, I am Sachin Ramdurg. I run and manage futuredecider.com website that helps students, graduates, and professionals, to find and decide on their future career with ultimate future career advices and future career guides. I have an overall 12+ years of career guidance experience in multiple domains which has helped multiple students, graduates, and professionals to find the best career path for their future.