According to popular research and entrepreneur statistics, more than 50% of businesses that failed did so because they lacked funds. 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
- 33% of small businesses get started with less than $5,000
- Almost 70% of small business owners use personal funds during the financial crisis
- There are about half a million startups launched every year in the US
- Over 80% of businesses fail because of poor cash management
- 27% of small startup owners are women
- 8% of entrepreneurs stated that money is their major motivation
- Men are more likely to receive financing to start a business
- Almost 20% of self-employed professionals work in the construction or trades field
General Entrepreneur Statistics
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 one study, 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 to 60.
Many say “age is just a number.” That 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 to 60.
3. 67% of small business owners use personal funds to handle financial problems.
(Federal Reserve Banks)
Obtaining funds for running 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 issues.
US Entrepreneurship Facts and Stats
4. 27 million working-age Americans are starting or running a new business.
The United States is known to have many entrepreneurs who handle one or more businesses across the nation. There are up to 27 million working-age Americans who are either starting or currently running a new business, according to various entrepreneurship statistics.
5. About half a million startups are launched each year in the US.
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, entrepreneur 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. According to Entrepreneur, the salaries of most entrepreneurs have been studied, and the average founder salary is estimated to be less than $50,000 per year.
Worldwide Entrepreneurship Statistics
7. 82% of business failures are due to poor cash management.
Business failures have become rampant in the world. That is usually due to the poor management of finance. About 82% of business failures are due to poor cash management.
8. There are 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. Many entrepreneurial statistics support this fact.
9. 69% of entrepreneurs started their business from home.
A good number of people across the world have home-based businesses. And according to research, almost 70% of today’s entrepreneurs ventured into being one after experiencing such significant events.
10. 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 promising career.
Many adults understand the ins and outs of business management and know what offers good pay. This study proved that about 62% of adults believe entrepreneurship is a good career choice.
12. Less than 1% of entrepreneurs came from extremely rich or poor backgrounds.
It is usually a topic of debate whether or not most successful entrepreneurs come from wealthy families. However, research has proven that less than 1% of entrepreneurs came from extremely rich or poor backgrounds.
Entrepreneur Stats About New Businesses
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 startup 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. Statistics about entrepreneurship reveal that 44% of entrepreneurs have a college degree.
Slightly less than half of the 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 primary purpose of any kind of business. Entrepreneurship data shows that 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 make it to the second year.
According to many sources, 80% of small businesses make it through to the second year. Unfortunately, around 50% of small businesses fail, while only 30% survive after ten years.
Fun Statistics About Entrepreneurs
18. Only 8% of entrepreneurs indicated that the desire to make money is a major motivation.
(Business News Daily)
Many people say money is one of the best forms of motivation. It may come as a surprise that only about a quarter of entrepreneurs share that opinion. As our top fun fact about entrepreneurs indicates, 8% of them claim that the desire to make money is a main incentive.
19. A business having two founders has 30% increased odds of making more money.
(Small biz Trends)
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. 72% of small business owners say that they don’t check their mobile devices while eating with others.
As an entrepreneur, dealing with distractions from work can be a bit difficult. A research project reported that 72% of small business owners don’t check their mobile devices while eating with others. This approach helps them maintain a healthy work-life balance.
21. According to new business statistics, men are more likely to receive financing to start a business than women.
Although many people picture men as workaholics, these entrepreneur statistics indicate that women are more likely to start a business independently. 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.
22. The average number of businesses started by an entrepreneur is two.
Statistics on small businesses point out that, 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.
23. 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.
24. 44% of entrepreneurs haVE two or more children.
Many entrepreneurs have a family. According to Natalie Sisson’s “The Suitcase Entrepreneurs” online post, entrepreneur statistics show that about 44% of entrepreneurs had two or more children.
25. 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 many industries out there, you are more likely to find entrepreneurs who 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 Statistics — Conclusion
Entrepreneurship is common everywhere in the world. Surprisingly, many of the most entrepreneurial countries, like Brazil, are still developing. That 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 will help you understand how people view entrepreneurship. If you intend to become one yourself, these stats are sure to give you better insight into what to expect. Being an entrepreneur is a tough job, but anyone can succeed if they truly understand the process.