Entrepreneurs are innovators. Each year, hundreds of thousands of Americans look to start businesses despite the risks. These 15 current statistics on entrepreneurship will answer your questions about success rates, funding, and what kind of experience or degrees you need to be an entrepreneur.
- 0.1 1. The U.S. has the best environment for entrepreneurs
- 0.2 2. 15.3 million Americans are full-time self-employed.
- 0.3 3. 452,835 companies have been founded in 2014. However, this is still less than 30 years ago.
- 0.4 4. Despite the fact that more businesses are being established each year, failure rates for business owners continue to decline.
- 0.5 5. Many reasons businesses fail include many.
- 0.6 6. Only 80% of small businesses survive their first year
- 0.7 7. Entrepreneurs finance their business using their savings, profits, and business loans
- 0.8 8. 8.The average amount of a short-term business loan is $20,000
- 0.9 9. The majority of business owners start their own businesses from scratch
- 0.10 10. Most small-business owners do not have a college degree.
- 0.11 11. More than half of all companies were started in a garage/basement.
- 0.12 12. Over 35% of entrepreneurs work 40-hour weeks
- 0.13 13. 125% more successful entrepreneurs are those who have worked in the same industry as they are currently operating in.
- 0.14 14. Most entrepreneurs are , not millennials .
- 0.15 15. 62% U.S. billionaires are selfmade
- 1 Bottom line
1. The U.S. has the best environment for entrepreneurs
The United States is ranked number one among the 137 companies that are listed on the Global Entrepreneurship and Development Index (GEDI) . The GEDI compiles data on different entrepreneurial factors from different countries and compares them with the economic and social infrastructure.
2. 15.3 million Americans are full-time self-employed.
According to a FreshBooks report, this entrepreneurship statistic will likely rise. According to a 2018 FreshBooks report, 27 million Americans will be working full-time as self-employed by 2020. [https://www.freshbooks.com/wp-content/uploads/2018/04/2018selfemploymentreport.pdf]
3. 452,835 companies have been founded in 2014. However, this is still less than 30 years ago.
Despite the assumption that small businesses are increasing in number each year, they have been declining over the last few years because of factors like industrialization, Great Recession and increased regulatory requirements.
4. Despite the fact that more businesses are being established each year, failure rates for business owners continue to decline.
Since 1977, the rate at which American entrepreneurs close their shops has fallen 30%. [https://www.entrepreneur.com/article/254871]
5. Many reasons businesses fail include many.
CB Insights found that 42% of businesses fail due to a lack of market demand. Around 29% of businesses fail due to lack of capital, 23% fail because they don’t have the right people, and 17% fail because their business model isn’t strong enough. [https://www.cbinsights.com/research/startup-failure-reasons-top/]
6. Only 80% of small businesses survive their first year
According to the Small Business Administration (SBA), while almost 80% of small businesses survive within their first year, only half have survived for five years or more in the past decade. One-third of small businesses survive for 10 years or more.
7. Entrepreneurs finance their business using their savings, profits, and business loans
21% of small businesses have used family and personal savings to finance their business, 5.7% have used profits and assets from the business, and 8% have used bank loans and credit cards for business financing.
8. 8.The average amount of a short-term business loan is $20,000
These loans are easier to access for small business ventures. The average SBA loan amount amounts to $417,316 and the average line of credit for a business is $22,000. Many small businesses still apply for loans through traditional banks. A traditional bank lends on average $150,000. [https://www.fundera.com/business-loans/guides/average-small-business-loan-amount]
9. The majority of business owners start their own businesses from scratch
Around 83.1% started their own business. 11.3% bought, 2.8% inherited and 4.4% transferred ownership or gifts.
10. Most small-business owners do not have a college degree.
To start your own business, you don’t need a degree. Most business owners have either dropped out of college or never attended college before starting their own business. A CNBC/Survey Monkey survey found that only 26% of small-business owners have a bachelor’s degree. Only 17% of small business owners went to college. 20% graduated high school, but not to college. 5% did not graduate high school.
11. More than half of all companies were started in a garage/basement.
Don’t be discouraged if you are starting your business from home. Google, Apple and Microsoft are all examples of world-famous companies that started in their garages or basements. 51.6% of all companies were started in someone’s basement or garage. [http://sbecouncil.org/about-us/facts-and-data]
According to the SB, 60% of businesses without employees are home-based.
12. Over 35% of entrepreneurs work 40-hour weeks
This includes weekends, as 17.7% of entrepreneurs say that they work every weekend. Around 31% of entrepreneurs work 50 hour weeks, while 11.8% work 60 hours a week. Some business owners must work longer hours to be able to attend important life events, celebrations, or other experiences. Around 37.9% of respondents say that they have missed at least one family or social event each year because of work.
13. 125% more successful entrepreneurs are those who have worked in the same industry as they are currently operating in.
Although education is not a major factor in entrepreneurship success, it does make a difference. Research has shown that entrepreneurs who have worked in the same field before starting a business are more likely to succeed. This is true for many reasons, including connections and experience. An experienced candidate will be able to charge higher for their services, as well as offer more value to clients and customers.
14. Most entrepreneurs are , not millennials .
Research from Massachusetts Institute of Technology has shown that the myth of the 22-year-old millennial entrepreneur ruling the small business world is false. 42-year-olds are the average age of an entrepreneur who has started a business and hired at least one employee.
15. 62% U.S. billionaires are selfmade
Wealth X surveyed 585 billionaires and found that 362 of them, or 62%, were self-made. 18% achieved billionaire status by a combination inheritance and creating their own wealth. The remaining 20% inherited their wealth.
It seems that the future of entrepreneurship in America looks very bright. Entrepreneurs are hard workers, but they get results. These 15 statistics on entrepreneurship are what you thought. Please comment below.