Are you thinking of starting your own business? See how you measure up with these 10 facts about small businesses that every aspiring entrepreneur should know before creating their own startup.
Are You An Aspiring Entrepreneur?
If you are reading this, it is most likely because you are considering starting your own business. Congratulations! Small and medium businesses are the very foundation of the global economy, and the world needs big thinkers and entrepreneurs like you to keep things moving forward.
However, although millions of people worldwide create their own businesses every single year, not all of these are able to reach success. When thinking about your small business and beginning to draw up business plans, it is always a good idea to research statistics aboutindustry trends andbenchmarks that can help you develop a clearer idea of what you are going up against.
These next 10 facts about small businesses are a great starter to help you grasp a better understanding of the world of business, startups, and technology!
10 Facts About Small Businesses Entrepreneurs Should Know
General Small Business Trends
1. Small and medium-sized businesses make up over 90% of all firms globally. On average, they also account for 70% of total employment and make up 50% of their countries’ GDP. [United Nations]
2. In the US, there are 31.7 million small businesses, which make up 99.9% of all businesses in the country. This means 47.1% of all employees are employed by a small business. [U.S. SBA]
2. As of March 2020, the number of businesses in the United States that were less than 1 year old was 804,398. [Statista]
When considering the impact of your business and analyzing potential competition, it is good to have a general understanding of the small business economy as a whole. These facts can help you dive deeper into the size of your specific industry and how difficult it will be to penetrate it, or even find new markets you can get a head start in!
Technology Industry Trends
4. The global technology industry is expected to reach $5 trillion in 2021, representing a 4.2% growth rate. [CompTIA]
This industry continues to grow year after year as our technology improves. More and more businesses are interested in going digital.
5. While the U.S. accounts for 33% of the technology market, the majority of spending, or 67%, occurs outside of the U.S. [CompTIA]
While the U.S. is the still biggest consumer, there are tons of opportunities for tech-based companies on a global scale.
6. AI-based revenues in businesses are expected to reach $100 billion by 2025, with healthcare, remote work, and education being its heaviest users. [Deloitte]
Artificial intelligence is one of the most popular tech trends at the moment, and there is a big opportunity to create products that can continue to push the healthcare, remote working, and education industries into going digital.
7. 81% of small business owners work during nights, and 89% work during the weekends. [Fundera]
Most small business owners work longer hours than the average employee. Are you prepared to face the entrepreneur lifestyle?
8. 53.78% of small business owners have a Bachelor’s degree or higher, which is much higher than the national average of 33%. [Fundera]
You do not need hundreds of thousands to get started! Start slow and build your way up from here.
Which Trends Do You Look Out For?
There are thousands of interesting facts about small businesses and entrepreneurship out there, so do not stop here! Researching industry trends and benchmarks are a great tool for coming up with ideas, strategies, and plans regarding your business. Which other small business trends do you keep an eye out for?