Being self-employed and running a business of your own is not an easy task. Usually, finance is a major problem. According to popular research and entrepreneur statistics, more than 50% of businesses that failed did so because they lacked funds. Successful entrepreneurs have told stories as regards the challenges they have gone through while building a business of their own. Many of these stories have helped others, especially people who are just starting their entrepreneurial careers. But it is important to get a clear understanding of what it truly entails.
This article provides a good number of fascinating statistics to help you gain special insights into what goes on in the world of entrepreneurs. But first, we will need to take a brief look at some of the most vital stats that everyone should know.
Vital Statistics about Entrepreneurship
- 19.6% of self-employed professionals work in the construction/trades field.
- Owners of small startups report that managing their business is four times more stressful than raising children.
- The average number of businesses started by an entrepreneur is two.
- 73% of small startup owners are men.
- 22.5% of small businesses fail within their first year.
- 27 million working-age Americans are starting or running a new business.
- 67% of small business owners use personal funds to handle financial problems.
- 60% of people who start small businesses are in the age range of 40 – 60 according to stats on small businesses.
- 82% of business failures are due to poor cash management.
- Less than 1% of entrepreneurs came from an extremely rich or poor background.
Entrepreneur Statistics for 2019
1. A third of small businesses get started with less than $5,000.
Unlike large scale businesses, small businesses obviously do not start big. According to a study made in 2019, it is estimated that small startups are launched with less than $5000.
2. 60% of people who start small businesses are in the age range of 40 – 60.
Many say “age is just a number.” This means most activities and actions are not affected by it. The same thing goes with entrepreneurship, as according to the latest entrepreneurship stats by Guidant Financial, about 60% of people who start small businesses are in the age range of 40 – 60.
3. 67% of small business owners use personal funds to handle financial problems.
(Federal Reserve Banks)
Obtaining funds for the running of a business can be very challenging, and small businesses are particularly vulnerable to this kind of problem. From top entrepreneur statistics in 2019, 67% of small business owners are usually left with the option of using personal funds to handle financial problems.
Entrepreneurship US Statistics
How many entrepreneurs in the US in 2018?
4. 27 million working-age Americans are starting or running a new business.
The United States is known to have a good number of entrepreneurs who handle one or more businesses across the nation. Entrepreneurship statistics have estimated that there are up to 27 million working-age Americans who are either starting or currently running a new business.
5. About half a million startups are launched each year in the United States.
Startups are launched every year in the US. An amazing fact about the number of these startups is that they are up to half a million. However, Entrepreneurship US facts show that out of this huge number, a large percentage still shuts down.
6. The average founder salary is estimated to be less than $50,000 per year.
Of course, there are lots of monetary gains to be had from a successful business. The salaries of most entrepreneurs have been studied, and according to Entrepreneur, the average founder salary is estimated to be less than $50,000 per year.
Entrepreneurship Statistics Worldwide
7. 82% of business failures are due to poor cash management.
Business failures have become rampant in the world. This is usually due to the poor management of finance. According to popular entrepreneur statistics, about 82% of business failures are due to poor cash management.
8. There over 582 million entrepreneurs in the world.
There are entrepreneurs all across the world. Each country of the world has its own set of entrepreneurs, albeit some more than others. An expert study determined that there are over 582 million entrepreneurs globally. This fact is supported by entrepreneur statistics for 2017.
9. 3% of entrepreneurs started their business due to a life-changing event.
A good number of people across the world have experienced life-changing events like divorce or the death of a loved one. Entrepreneurs undoubtedly experience this, too. And according to research, about 3% of today’s entrepreneurs ventured into being one after they had experienced such significant events.
10. More than 20% of small businesses fail within the first year of their conception.
Keeping up with the many challenges of running a business can be very tough. According to small business statistics, over 20% of small businesses fail to continue beyond their first year.
11. 63% of adults believe entrepreneurship is a good career.
Many adults understand the ins and outs of business management and know what offers good pay. Research based on entrepreneur statistics for 2017 was carried out by various bodies, and this study proved that about 62% of adults believe entrepreneurship is a good career choice.
12. Less than 1% of entrepreneurs came from an extremely rich or poor background.
It is usually a topic of debate whether or not most successful entrepreneurs come from very rich families. This makes it easy for them to deal with financial challenges and gain better opportunities at building their business. However, research has proven that less than 1% of entrepreneurs came from an extremely rich or poor background. Hence, most entrepreneurs lie within the middle class range.
How many new businesses started in 2017?
13. About 627,000 businesses were launched in 2017.
A huge number of businesses are launched every year across the world. Popular research made by top organizations reveals that about 627,000 businesses were launched in 2017.
14. 73% of small startups’ owners are men.
Male entrepreneurs are known to outnumber female entrepreneurs significantly. There are many facts about this, all of which show men as the leading number. Men account for 73% of small business owners, while women make up 27%.
15. Entrepreneurial statics reveal 44% of entrepreneurs have a college degree.
Slightly less than half of entrepreneurs had a degree before venturing into running a business of their own. In fact, about 44% of them had gone for a college degree. Many have also gone for a more advanced degree, such as a master’s or a doctorate.
16. 30% of small businesses continually lose money.
Making profits is the main purpose of any kind of business. So, business owners are prone to devise several means of improving their financial income and gaining more funds when starting their business. But in some cases, things do not work out as planned. A recent study shows only 40% of small businesses are profitable, and about 30% continually lose money.
17. 80% of small businesses that started in 2014 made it to the second year.
According to entrepreneur statistics for 2014, 80% of small businesses that launched in 2014 made it through to the second year. And by 2018, only 56% remained.
Entrepreneurship Fun Facts
18. Fewer than 25% of entrepreneurs indicated that the desire to make money is a major motivation.
A lot of people say money is one of the best forms of motivation for a human being. It may come as a surprise that only about a quarter of entrepreneurs share that opinion. As our top fun fact about entrepreneurs indicates, 25% of them claim that the desire to make money is a major incentive.
19. A business having two founders has increased odds of making more money.
Most popular and successful businesses today were founded by two people. Having two founders is one of the many reasons for their success. According to top reports concerning entrepreneur statistics, businesses having two founders have increased odds of making more money.
20. 46% of businesses had only one founder.
Indeed, running a business without experience in many areas of the profession will most likely not end well. For this reason, most people work with partners who are highly experienced in entrepreneurship. According to statistics, up to 46% of business owners do not do this.
21. 72% of small business owners say that they don’t check their mobile device while eating with others.
As an entrepreneur, dealing with distraction from work can be a bit difficult. A research project reported that 72% of small business owners don’t check their mobile device while eating with others. This approach helps them maintain a healthy work-life balance.
22. According to new business statistics, men are more likely to receive financing to start a business than women.
Although many people picture men as being workaholics, these entrepreneur statistics indicate that women are actually more likely to start a business on their own. However, a study led by the SBA has shown that male entrepreneurs were slightly more likely to receive financing, as 34% of them acquired loans in the past year, compared to 31% of females.
23. The average number of businesses started by an entrepreneur is two.
Aside from making more money, entrepreneurs are looking for various means of investing their skills, funds, and resources. Because of this, a good number of entrepreneurs decide to start another business after becoming successful with one. And from top facts, the average number of businesses they start is two.
24. Owners of small startups report that managing their business is four times more stressful than raising children
Many adults who have kids admit to the fact that raising them takes dedication and commitment. However, startup statistics show many of these adults who are small startup owners also claim that running their business is a lot more stressful than raising kids.
25. 44% of entrepreneurs had two or more children.
Many entrepreneurs have a family. According Natalie Sisson’s “The Suitcase Entrepreneurs” online post, entrepreneurship statistics show that about 44% of entrepreneurs had two or more children.
26. 19.6% of self-employed professionals work in the construction/trades field.
Being an entrepreneur does not necessarily involve a person working in the same business as others. With a huge number of industries out there, you are more likely to find entrepreneurs that specialize in running different business types. The construction/trades field has a large percentage of entrepreneurs running businesses. According to top statistics, 19.6% of self-employed professionals work in the construction/trades field.
Entrepreneurship is common everywhere in the world. Surprisingly, many of the most entrepreneurial countries, like Brazil, are still developing. According to entrepreneurship statistics, this is due to the higher number of opportunities to start a venture. Hence, these countries have more entrepreneurs than most other nations.
These top facts and figures that will help you understand how people view entrepreneurship. If you intend to become one yourself, these same entrepreneur stats are sure to give you better insight on what to expect. Being an entrepreneur is a tough job, but anyone can be successful at it if they truly understand the process.
What percent of entrepreneurs are successful?
When it comes to running a business, about 80% make it through their first year. This percentage tends to gradually reduce as the years go by. Only 70% survive their second year, and by the tenth year, only about 30% remain in business.
What is the failure rate of all entrepreneurs?
According to the SBA, 30% of new businesses fail during the first two years of their conception, 50% during the first five years, and 66% during the first ten years.
What percent of entrepreneurs went to college?
According to Cnbc, 44% of entrepreneurs earned a college degree. A good number of entrepreneurs who have no degree are from developing countries. This accounts for the fact that the most entrepreneurial countries are the developing ones, as entrepreneur statistics make abundantly clear.