Most of us can understand the drive to be our own boss and make our own schedule. It’s no wonder there’s such a strong pull to own a small business.
For more than 50 years, the U.S. Small Business Administration (SBA) has celebrated National Small Business Week, which recognizes the critical contributions of America’s entrepreneurs and small business owners. During this National Small Business Week, let’s take a look at some important statistics to consider before you begin drafting your own small business plan.
Small Business by the Numbers:
According to the US Small Business Administration (SBA), there are a whopping 3.25 million small businesses in the US—which account for 99.9 percent of all US businesses. That’s staggering! (The SBA defines a small business as having 500 or fewer employees) (SBA, 2021).
Of course, with so many small businesses operating in our country, they also are the main employers nationally. In fact, small businesses create 1.5 million jobs each year and employ 64 percent of our workforce (Fundera, 2020).
Considering throwing your hat in the ring? According to the Bureau of Labor Statistics, more than 20% of small businesses fail in the first year because of lack of market demand (CB Insights, 2019). However, don’t let that dissuade you from your dream of entrepreneurship. Simply consider this data and develop a business plan that accounts for these probable risks.
In our social-media-centric society, it’s becoming increasingly viable to operate a side business in addition to maintaining a full-time position. With seemingly endless reach, social media can boost awareness of a small business for a nominal cost, and sometimes even completely free of charge. That’s likely why Millennials and Gen Zers are 188% more likely to create a side business in comparison to Baby Boomers (Salesforce, 2019).
America’s entrepreneurs and small business owners are critical to the health of our economy. Along with the SBA, we celebrate the contributions of each and every small business owner, present and future.
Resources and Recommended Reading:
“2021 Small Business Profile.” United States Business Administration Office of Advocacy. https://cdn.advocacy.sba.gov/wp-content/uploads/2021/08/30143723/Small-Business-Economic-Profile-US.pdf [Accessed April 27, 2022]
Ortegon, Enrique. “Five Small Business Statistics for 2019.” Salesforce Blog. https://www.salesforce.com/content/blogs/us/en/2019/06/small-business-statistics.html [Accessed April 27, 2022]
Serrano, Alfonso. “How Many Jobs Do Small Businesses Really Create?” Fundera by Nerdwallet. https://www.fundera.com/blog/small-businesses-job-creation [Accessed April 27, 2022]
“The Top 12 Reasons Startups Fail.” CB Insights. https://www.cbinsights.com/research/startup-failure-reasons-top/ [Accessed April 27, 2022]