Small businesses are the lifeline of any economy. Mom-and-pop restaurants, corner stores, family-owned shops, boutique tech firms and other enterprises drive economic growth, foster innovation and create employment opportunities.
These are the heartbeats of the business community. They provide essential services and goods, adding a unique flavor to the local markets.
2023 will continue to illustrate the importance of small businesses as they tackle challenges and take advantage of new opportunities.
In this article, we shed light on the nuances of small business statistics for 2023 and provide information about their wins, difficulties, and trends.
General Small Business Statistics
small business owner statistics
Industry-wise Small Business Statistics
Financial Small Business Statistics
Jobs in Small Business Statistics
Small Business Marketing Statistics
Small Business Technology Statistics
Small Business Challenges Statistics
General Small Business Statistics
- Most businesses are small – 99.9% of American businesses. (SBA, 2023)
- Small businesses pay 39.4% of private sector payroll. (SBA, 2023)
- There are 33 million small businesses in the United States. (SBA, 2023)
- From 1995 to 2021, small businesses created 17.3 million net new jobs, accounting for 62.7% of net jobs created since 1995. (SBA, 2023)
- Business owners go into business primarily because they are “ready to be their own boss” (28%) and there is an overall dissatisfaction with corporate America (23%). (Guiding Financial, 2023)
- Small businesses generate 32.6% of known export value. (SBA, 2023)
- Small businesses employ 61.7 million Americans, equal to 46.4% of the private sector workforce. (SBA, 2023)
- About 38% of small businesses use specialized software in their business operations. (SBA, 2023)
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small business owner statistics
- Baby Boomers (39.63%) and Gen X (47.20%) make up the majority of small business owners. (Guiding Financial, 2023)
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- Only 43.2% of small businesses are owned by women. Racial minorities own 19.4% of small businesses. (Forbes, 2023)
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- Over 70% of small business owners feel satisfied as business owners, with 37% feeling “very happy” and 35% feeling “somewhat happy.” (Guiding Financial, 2023)
Industry-wise Small Business Statistics
- The fastest growing industries are health care and social assistance. (Forbes, 2023)
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- The largest reduction in closures was seen in the transportation and storage sector, where the closure rate fell 8% from 21% to 13% in 2022, pointing to progress toward business as usual or at least a new normal. Does it. (Meta, 2022)
- 35% of small and medium-sized businesses (SMBs) in the hotel, café and restaurant sector reported an increase in their workforce. (Meta, 2022)
- Respondents in more traditional face-to-face industries like food and beverage, restaurants and bars, and retail are more concerned about maintaining inventory/fulfillment than other industries, returning to pre-COVID business levels with a more cost-conscious public. are worried. and disruption in cash flow. (Verizon, 2022)
Financial Small Business Statistics
- Startup costs for most small businesses range between $250k to $500k (27.3%). The second most reported startup costs are between $500k to $1 million (16%). (Guiding Financial, 2023)
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- Nearly half of small business owners use 401(k) business financing to start their ventures. Others also use cash, SBA loans, lines of credit, and term and unsecured loans. (Guiding Financial, 2023)
- The average small business owner salary is $69,579 per year. (Pay Scale, 2023)
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- 24% of SMBs globally reported increasing their prices by 20% or more in the first half of 2022. (Meta, 2022)
- Among SMBs reporting increases, those that reported at least a 10% increase in price were also more likely to report an increase in cost of at least 10%. (Meta, 2022)
Jobs in Small Business Statistics
- Small businesses have added more than 12.9 million jobs over the past 25 years. (Forbes, 2023)
- The industry with the highest number of job opportunities is the education and healthcare industry. (Forbes, 2023)
- Nearly 20% of female-led SMBs reported an increase in their headcount in the first half of 2022, and 13% reported a decrease in their headcount, compared to 25% and 17% of male-led SMBs, respectively . (Meta, 2022)
- More than 80% of US SMBs reported that their workforce either grew or remained the same in the first half of 2022. (Meta, 2022)
- US minority-led SMBs were more likely to report an increase in their headcount (20%) than other SMBs (16%). (Meta, 2022)
Small Business Marketing Statistics
- Of small businesses in the US, 55% were advertising on social media in 2021. (Meta, 2022)
- Of those small businesses that advertise on social media, 66% used Facebook, while 42% used YouTube. (Meta, 2022)
- Of all small businesses, 28% do not have a website. (Top Design, 2021)
- Nearly half of small businesses (46%) have in-house employees who manage their websites, and 32% use DIY website builder software. (Top Design, 2021)
Small Business Technology Statistics
- Women-led SMBs reported a higher proportion of sales made digitally than men-led SMBs globally. (Meta, 2022)
- Women-led SMBs used digital tools more for marketing-based purposes (advertising, communicating directly with customers, and selling goods and services) than men-led SMBs. (Meta, 2022)
- Nearly two-thirds (63%) of SMBs on the Facebook app earned some portion of their sales through digital channels in the last 30 days. (Meta, 2022)
- Sub-Saharan Africa emerged as the region where the highest proportion of SMBs reported digital sales at over 50% (32%). (Meta, 2022)
- More than a third of U.S. Black-led SMBs reported that more than half of their sales were made digitally (39% of respondents), with all minority groups leading the way. (Meta, 2022)
- Most respondents say their business has added or upgraded their Internet connection to a higher speed or higher capacity plan in the past year. (Verizon, 2022)
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- 44% have added or upgraded network security services, and 29% have invested in employee cybersecurity training. (Verizon, 2022)
- Respondents most commonly say their business has added connectivity technology in the past year to streamline operations (78%). Nearly half say they added techniques to connect with existing customers (53%) or acquire new customers (48%). (Verizon, 2022)
Small Business Challenges Statistics
- Inflation and labor quality are the most important problems for small businesses in the United States. (Statista, 2023)
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- Women-led SMBs recorded a higher proportion of business closures at 23%, while men-led SMBs had a higher proportion of business closures at 17%. (Meta, 2022)
- Despite higher closing rates, women-led SMBs reported better sales performance than men-led SMBs. Nearly 33% of women-led SMBs have reported a decline in sales in the last 30 days, while 39% of male-led SMBs have reported a decline in sales. (Meta, 2022)
- In the US, 20% of SMBs reported they were closed in October 2022. (Meta, 2022)
- US minority-led SMBs were 8% more likely to report closure than other SMBs. (Meta, 2022)
- 31% of US black-led SMBs are reported to have closed. (Meta, 2022)
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- Nearly 9 in 10 respondents (89%) say they are worried about the state of the U.S. economy, and more than 4 in 5 say they are worried about small businesses in the U.S. and the global economy. (Verizon, 2022)
- Nearly 4 in 5 respondents (78%) say their business costs have increased in 2021, outweighing other financial and personnel challenges. With increased costs, nearly half (46%) reported a decline in sales, and more than a quarter (27%) drained cash reserves. (Verizon, 2022)
- More than half of respondents (53%) say their business has faced operational issues sourcing materials due to supply chain disruptions in the past year. (Verizon, 2022)
- Interest in resources for SMBs is generally highest among respondents in the construction and contracting and food and beverage industries and lowest in entertainment and recreation. (Verizon, 2022)
- Nearly 3 in 5 respondents (58%) say they would find an online network of SMB leaders helpful as they grow their business for the remainder of the year. (Verizon, 2022)
- Respondents were largely interested in programs supporting small businesses, particularly free self-paced courses in social media marketing and finance. (Verizon, 2022)
Role of Small Business Statistics in Strategic Decision Making
Small business statistics are important in making strategic decisions and help entrepreneurs understand market trends and economic health.
These data-driven insights guide important decisions related to investments, marketing strategies and policy making. You can recognize the patterns and projections presented by these data to make more informed, future-proof decisions.