Interesting Small Business Statistics in 2024
While corporate giants such as Tesla and Apple capture the public’s attention, it is small businesses that form the backbone of the American economy. Small businesses continue to evolve, not only playing a major role in job creation, but contributing to innovation and the country’s overall prosperity. The small business statistics featured below not only offer an interesting snapshot of the current state of affairs; they show emerging trends and future directions.
Small Business Employment Statistics
- Almost all businesses across the U.S. are small businesses – 33.3 million businesses in the United States qualify as small businesses, making up 99.9% of all U.S. businesses.
- Nearly half of all U.S. employees are employed by a small business – 61.6 million people are employed by small businesses, representing 45.9% of the entire U.S. workforce.
- 80% of small businesses are solo ventures.
Small Business Job Creation
- Small businesses have added over 12.9 million jobs in the last 25 years, approximately two-thirds of all new jobs added to the economy during this period.
- The industry with the highest projected job growth is home health and personal care.
- By 2032, the number of U.S. jobs is projected to increase by 4.7 million.
Small Business Salaries & Wages
- The average salary of a small business owner is 16% above the annual mean wage in the U.S.
- Hourly earnings have increased more than 4% over the last year, higher than the current inflation rate.
Small Business Ownership Statistics
- Millennials own just 13% of small businesses in the U.S. with the majority of small businesses owned by Boomers and Gen X.
- Males own a majority of small businesses, but an increasing percentage of female-owned businesses, currently at 43.4%, shows a positive shift towards greater gender equality in entrepreneurship.
Online & E-Commerce Business Statistics
- Nearly one out of three businesses still don’t have a website. 20% of these use social media instead of a site.
- 83% of businesses use social media.
- Over 25% of business is conducted online.
- Over three-quarters of shoppers visit a business’s website before its physical location.
Small Business Costs
- Labor remains the number one cost for businesses at 70% of spending.
- Inventory is the second biggest cost for small businesses, somewhere between 25 – 35% of expenses on average.
Small Business Survival Statistics
- Over 180,000 more small businesses opened than closed in the last year.
- One in five businesses fail within the first year.
- Businesses are most likely to fail from running out of capital, with the second most common reason for small business failure is insufficient market demand.
- The construction industry has the highest failure rate.
- The industries with the highest survival rate are healthcare and social assistance.
Using These Stats To Your Favor
As a small business owner, you can learn a lot by looking at these business statistics. They not only can give you a better idea of the general business climate, but they can help you to better plan for the future based on the direction the data is pointing to.
And if ever considering selling your business, give us a call!
References:
Small Business Statistics Of 2024 – https://www.forbes.com/advisor/business/small-business-statistics/
With information from the Bureau of Labor Statistics and the United States Small Business Administration (SBA).