Here are 10 facts about small businesses in the United States you might find interesting:
- Prevalence: Small businesses make up 99.9% of all U.S. businesses, representing a significant portion of the economy.
- Employment: Small businesses employ nearly half (47.1%) of the U.S. private workforce, providing jobs for approximately 60.6 million people.
- Job Creation: Small businesses are a major source of new jobs, responsible for creating 64% of new jobs in the United States over the past 25 years.
- Revenue Generation: Small businesses generate about 44% of U.S. economic activity, contributing significantly to the GDP.
- Industries: The largest percentage of small businesses operate in the professional, scientific, and technical services sector, followed by healthcare and social assistance, and retail trade.
- Demographics: Women own approximately 42% of small businesses in the U.S., and the number of women-owned businesses has been growing rapidly, increasing by 58% from 2007 to 2018.
- Minority Ownership: Minority-owned businesses account for around 18.3% of all small businesses, with Hispanic-owned businesses being the fastest-growing segment.
- Survival Rates: About 80% of small businesses survive their first year, but the five-year survival rate drops to around 50%.
- Technology Usage: Over 80% of small businesses use digital tools to enhance their operations, with many relying on social media for marketing and customer engagement.
- Funding: Access to capital remains a significant challenge for small businesses, with many relying on personal savings, credit cards, and bank loans as primary funding sources.
