Facts and Figures for Small Businesses in 2022
Small businesses are the lifeblood of the world’s economy. While they can’t compare to big businesses in sheer raw numbers, nothing drives local economies quite like small businesses. Furthermore, small businesses are the driving force behind many independent innovations and often turn people into aspiring entrepreneurs.
If we were to talk about the significance of small businesses in the world, we’d be here the entire day, so let’s discuss numbers instead. In this article, we’ll take a look at some of the most interesting statistics regarding small businesses of the world that will paint a portrait of just how substantial and important they are on a global scale.
Interesting Small Business Stats
Out of all of the businesses in the world, about 95% are small businesses.
There are 30.2 million small businesses in the U.S.
Small businesses account for 64% of all new jobs in the U.S.
About 69% of all small businesses in the U.S. start their operations from home.
The most successful age to start a small business is 45.
About 54% of all small business owners have at least a bachelor’s degree.
The top industry for small businesses is food and restaurants.
The most profitable small businesses worldwide are in accounting, tax preparation, bookkeeping, and payroll service.
86% of small business owners make less than $100,000 a year in income.
92% of small business owners don’t regret starting their business.
So, without further ado, let’s get into the stats.
How many small businesses are there in the U.S.?
There are many small businesses worldwide, but one of the best places for small businesses is the United States of America. The U.S. has many programs in place to support small businesses. Small businesses are doing wonders for American small towns and local economies.
To get a better picture of the number of small businesses in the U.S., let’s look at some statistics.
- There are 30.2 million small businesses in the U.S. and over 99% of all businesses are small businesses.
Small businesses are a huge part of the United States economy. According to a recent study, there are 30.2 million different small businesses across the entire U.S. Small businesses comprise 99.9% of all United States businesses.
small businesses are a huge part of the united states economy
- Small businesses account for 64% of all new jobs in the U.S.
Small businesses are a big deal when it comes to global employment rates. They account for about 64% of new jobs in the U.S. alone, and they create about 1.5 million job positions.
- Out of all of the businesses in the world, about 95% are small businesses.
Small businesses are vital because they create an astonishing number of jobs. They account for over 95% of all firms worldwide and about 60%-70% of the global employment rates, leading economies worldwide.
- 24,813,048 small businesses in the United States are non-employer.
Just because a business is small doesn’t mean it has to employ anyone. A lot of people start small businesses to legitimize their careers and practices. The United States government calls these businesses non-employer businesses. Furthermore, there are about 24,813,048 non-employer businesses in the U.S. today.
- 69% of U.S. startups are started at the entrepreneur’s home.
We’ve all heard the touching tale of how most of the world’s big businesses started. Harley Davidson, Amazon, and even A.M.G. all started in garages, and that seems to be a trend across many small businesses. About 69% of all small businesses in the U.S. start their operations from home.
where do startups commence their operations
- Small business measuring tactics
Depending on your business type, number of employees, and revenue, whether or not your business can be labeled as small can vary. For industries such as manufacturing and mining, anything under 500 employees is considered small. For wholesale trade, it’s 100 employees.
Other businesses such as retail and service need to have an annual average revenue of less than 6 million dollars. For construction, the number rises to $28.5 million, special trade contractors are $12 million, and agriculture is $750 thousand to be considered a small business.
- Small businesses created 1.9 million net jobs in 2015.
Small businesses create a lot of jobs, and as time goes by, that amount is growing. In 2015, small businesses created about 1.9 million net jobs, and firms that employed less than 20 people experienced the most significant growth, adding about 1.1 million net jobs. - The employment share of the self-employed and micro-enterprises is highest in South Asia, Africa, and the Middle East.
A comparison of the different regions indicates that the share of self-employment in total employment is highest in South Asia (67%), followed by sub-Saharan Africa (50%) and the Middle East and North Africa (44%).
percentage of self–employed people in the global workforce
- Total early-stage Entrepreneurial Activity (TEA) leaders by region of the world
The biggest Total early-stage Entrepreneurial Activity (TEA) in Asia and the Pacific is from Armenia at 21%. The highest TEA in Europe and North America is Canada with 17%. For Latin America, it’s Ecuador with 37%, and for the Middle East and Africa, it’s Madagascar with 18%. - Most micro-businesses employ nine to ten people.
When you think of micro-businesses, you’ll need to take the small business label and downscale it even further. However, there are many micro-businesses, most of which employ nine to ten people.
Conclusion
Saying that small businesses are globally important would be an understatement, and the statistics written above really highlight this fact. While small businesses might currently be facing a hard time due to the coronavirus pandemic, it’s also one of the driving forces behind innovation.
Once the pandemic ends, we’re likely to experience a boom in small businesses, which will be fantastic for the global economy and the entrepreneurs driving it.