21 Surprising Facts About Small Businesses in America

21 facts about small businesses that every entrepreneur, small business owner, investor in the U.S should know.

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What is a Small Business ?

Small business (in U.S) is a business having fewer than 500 employees ⁽¹⁾.

21 Surprising Facts 

99.7%-Fact #1

Small businesses in the U.S represent 99.7% of all employer firms ⁽¹⁾.

116 Each Hour-Fact #2

Each year over one million businesses start in U.S alone that excludes online start-ups ⁽²⁾. That means 116 each hour!

Six Days-Fact #3

It takes just six days to launch a small business in U.S ⁽³⁾.

50% Fail within First Five Years-Fact #4

Most of these new small businesses fail to survive, 7 out of 10 make it through first two years, 50% fails to make it through first five years ⁽¹⁾. 

1162 to 1-Fact #5

Small businesses in United States outnumber corporations by 1162 to 1 and there are 28million small businesses in total ⁽⁴⁾.

One Person-Fact #6

70% of all small businesses in U.S are managed by one person, single individual. ⁽⁴⁾.

20 or Less Than 20 Employees-Fact #7

Almost 90% of small businesses in the U.S have 20 or less than 20 employees ⁽⁵⁾.

Home Based-Fact #8

Around 50% small businesses in U.S are home based ⁽⁶⁾.

Small Business Millionaires-Fact #9

Around 70% owners of small business in U.S are millionaires ⁽⁷⁾.

Average Annual Revenue ⁽⁸⁾ -Fact #10

Small business average annual revenue with or without website	Without Website	With Website
	$3.6 million	$5.3 million

Online Small Business-Fact #11

According to a research, top 10 cities for online small business in the U.S are ⁽⁹⁾.

1. Manhattan
2. San Francisco
3. Brooklyn
4. Los Angeles
5. Miami
6. Chicago
7. Houston
8. San Diego
9. Austin
10. Las Vegas

60-80% New Jobs-Fact #12

Small businesses in U.S creates around 60-80% new jobs ^(10)(11).

Immigrants-Fact #13

One out of every six small businesses in U.S is owned by an immigrant ⁽¹²⁾.

Woman & Small Business-Fact #14

According to GEM (Global Entrepreneurship Monitor) research by year 2018 there will be 9.7 million new jobs in small business sector in U.S and half of those jobs will come from businesses owned by woman ⁽¹³⁾.

Small Business Owners & Computer-Fact #15

7 out of 10 small business owners (in U.S) consider computer to be their most important equipment ⁽¹⁴⁾.

Small Business & Social Media-Fact #16

Facebook is one of the most popular and widely utilized platform by small businesses (around 86%) in the U.S ⁽¹⁵⁾.

Small Business & Legal Woes-Fact #17

Every year Small businesses in the U.S endure cost of one hundred billion dollars, thanks to legal woes ⁽¹⁶⁾.

Small Business Owners & Legal Woes-Fact #18

One out of every three small business owners is sued or threatened with lawsuit in recent years ⁽¹⁶⁾.

Customer Service & Small Business-Fact #19

Four out every five U.S customers (80%) agree that small business put great emphasis on customer service compared to large businesses ⁽¹⁷⁾.

Small Business & Patents-Fact #20

Small businesses in U.S produce 16.5 times more patents per employee than large companies ⁽¹⁾.

High Tech Workforce-Fact #21

Small Businesses in U.S hires almost 43% of total high tech workforce ⁽¹⁾.

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References:

1.      www.sba.gov/sites/default/files/sbfaq.pdf

2.      Small Business by the Numbers (Washington DC: Small Business Administration, 2004)

3.      http://www.getbusymedia.com/small-business-stats/

4.      http://archive.sba.gov/advo/research/

5.      SBA frequently asked questions

6.      http://www.sba.gov/sites/default/files/Home%20Based%20Business%20and%20Government%20Regulation.pdf.

7.      Thomas J. Stanley, The Millionaire Mind (Kansas City, MO: Andrews McNeel, 2001). Thomas J. Stanely and William D. Danko, The Millionaire Next Door (New York: Pocket Books, 1996).

8.      http://www.entrepreneur.com/sbe/glance/

9.      https://www.paypal-community.com/t5/PayPal-Forward/PayPal-s-Top-Ten-Cities-for-Online-Small-Business/ba-p/780859

10.  http://www.politifact.com/virginia/statements/2011/dec/30/eric-cantor/cantor-says-small-businesses-create-70-percent-us-/

11.  http://www.sba.gov/node/8420

12.  www.fiscalpolicy.org/FPI-release-immigrant-small-business-owners-20120614.pdf

13.  www.gemconsortium.org/docs/download/2645

14.  http://www.boltinsurance.com/news/small-business-tips/small-businesses-focus-on-technology-social-media-marketing/

15.  http://www.boltinsurance.com/news/small-business-tips/how-are-small-businesses-using-social-media-to-reach-customers/

16.  http://www.boltinsurance.com/news/miscellaneous/small-business-lawsuits-infographic/

17.  http://about.americanexpress.com/news/pr/2011/csbar.aspx