20 Intriguing Startup Statistics to Know in 2022

Do you believe you have a million-dollar idea? If the answer is yes, you’ve probably thought about launching a business and becoming your own boss. Startup statistics show that millions of entrepreneurs start their own companies every year, but how many are successful? 

We performed extensive research and covered the most relevant information to give you a clear overview of the small business industry. Read on and learn how many startups survive each year, the biggest reasons why some fail, and which countries see the most significant rise in the startup business. Hopefully, these statistics will help you decide whether to go on an adventure and start your own company.

Startup Stats 2022 (Editor’s Choice)

  • Out of 1,000 funded startups, only 54% survive the first year.
  • In the US, startups created over two million jobs in 2015.
  • Approximately 90% of all small businesses fail.
  • In 2016, 69% of US entrepreneurs started their businesses from home.
  • The US and China are countries with the highest percentage of unicorn startups.
  • Small business success rate stats show a 40-year-old person is 2.1 times more likely to launch a thriving startup than an entrepreneur aged 25.
  • Startups in the scientific, professional, or IT services industry have an average profit margin of 11.9%, which is higher than other small businesses.
  • Entrepreneurs with failed startups have a 20% higher chance of success in their next venture.

General Startup Statistics

1. Only 54% of the 1,000 funded startups survive the first year.

(Carta)

Based on data from a Carta survey, only 54% out of a thousand startup companies receive the funding within the first year and come out on top. While it’s far from ideal, the rate is more than decent considering how competitive the startup industry is.

2. Young companies generated 11% of employment in 2015.

(United States Census Bureau)

According to a startup analysis, businesses that existed for less than six years accounted for 11% of employment and 27% of career creation. For comparison, companies that have existed for more than 25 years generated 62% of jobs.

3. Mentored startups have a 3.5 times faster growth rate and generate seven times more money.

(Startup Genome)

Startups with helpful mentors grow 3.5 times faster than those without external support. In addition, data on startup revenue shows that mentored entrepreneurs raise seven times more money than others.

4. 1% of startups turn into unicorn companies.

(CB Insights)

A CB Insights report reveals that only 1% of startups reach the unicorn phase, i.e., turn into a company worth over one billion dollars. Airbnb, Slack, Uber, Docker, and Stripe are some of the most popular unicorns.

5. A 40-year-old person is 2.1 times more likely to successfully launch a startup than an entrepreneur who is 25 years old.

(Kellogg Insight)

A new study presents some of the most interesting facts about startups — people who are 40 or older are 2.1 times more likely to run a startup than a 25-year-old. In addition, entrepreneurs who are 40 or older are 1.3% more likely to start a company ranking in the top 0.1% than those aged 25.

6. Entrepreneurs with failed startups have a 20% higher chance of success in their next venture.

(SSRN, Startup Genome)

Founders whose startups have failed are 20% more likely to launch a new and successful business. In addition, according to research on the average growth rate for startup companies, new businesses that make major changes to their operations once or twice have 3.6 times higher growth, a 52% smaller chance of premature scaling, and earn 2.5 times more profits than other startups.

7. With $1.3 billion, Swiggy was the highest-funded startup worldwide in Q1 2022.

(AlleyWatch)

Swiggy is a food delivery company based in Bangalore. According to startup funding statistics, it had the highest funding worldwide in the first quarter of 2022. The startup with the second-highest funding for this period was the London-based Checkout.com with one billion dollars, followed by Flexport, a freight forwarder startup from California whose funding was estimated at $935 million.

8. Companies offering scientific, professional, and IT services have an average profit margin of 11.9%.

(The Balance Small Business)

The most profitable small businesses belong to the professional, scientific, and IT services industry. Healthcare follows with 9.6%, while accommodation and food service stand at a profit margin of 4.4%.

Startup Entrepreneurship Stats Worldwide

9. In the US, startups created more than two million jobs in 2015.

(United States Census Bureau)

As stated in the research published on the US Census Bureau website, 414,000 startup companies generated over two million jobs in 2015. Interestingly enough, that’s nowhere near the numbers from the pre-Great Recession period when 524,000 startups created more than 3.3 million jobs annually.

10. The US and China have the highest percentage of unicorn startups.

(USC Marshall)

The startup stats from a USC Marshall survey display that the United States ranks first for the number of unicorns, with 64.7% of the billion-dollar startup share, followed by China with 13.8%. India is in third place with 4.1%, while the United Kingdom is fourth with 2.5%.

11. In 2012, 69% of US entrepreneurs started their businesses from home.

(GEM)

According to startup trends from 2012, more than two-thirds of entrepreneurs launched their businesses from home. While it is reasonable to assume they eventually move out as their business evolves, statistics show that 55% of new and 59% of established companies still operate from home.

Read more: 22 Entrepreneur Statistics and Facts

12. At 15.1%, Latvia is Europe’s country with the highest portion of the population involved in the startup business.

(Statista)

Data on demographics of startup founders reveals that Latvia is the country with the largest percentage of the population involved in the startup business in Europe. Netherlands and Belarus follow with 14.2% and 13.5%, respectively, while the rate of budding entrepreneurs in the UK is 12.6%.

13. Worldwide funding for AI startups reached $38 billion in 2021.

(Statista)

The funding for Artificial Intelligence startups worldwide has drastically increased in recent years. Based on the startup financial statistics, the AI small business market received $38 billion in the first half of 2021, higher than any year before.

14. Three out of four people claim the Netherlands, Sweden, and Poland are countries where it’s the easiest to start a business in Europe.

(GEM)

People looking to start a business in Europe might find this info useful — around 75% of European adults stated that Sweden, Poland, and the Netherlands are the countries where it’s the easiest to launch a business. On the other hand, business startup statistics show that less than 15% of adults in Greece and Bulgaria agree it’s simple to open a company.

15. Thailand, Indonesia, and Puerto Rico have the highest entrepreneurship media coverage.

(GEM)

Around 80% of adults say there is positive media attention for new companies in these three countries. Regarding Europe, we can notice the highest percentage of positive media influence in Slovenia and Ireland, at around 75%. In North America, approximately the same percentage of adults in the US and Canada claim that startups get enough media coverage.

Startup Failure Rate Stats

16. Approximately 90% of small businesses fail.

(Failory, Startup Genome)

A data report on over 3200 startups reveals that 90% of small businesses fail. Most of the remaining 10% also experience difficulties on their way to success. Moreover, 20% go under within the first year, 30% in the second, and almost 70% fail by the end of the 10th year.

17. 35% of startups go under due to the wrong market selection.

(CB Insights)

After bankruptcy, the wrong market focus is the most common reason why startups fail, business failure statistics show. Entrepreneurs who don’t perform adequate market research beforehand often launch their products or services for a market without a need for them, inevitably leading to failure.

18. More than 25% of startups in Hawaii don’t survive the first year.

(Kauffman)

At 73.61%, Hawaii was the state with the lowest rate of successful startups after one year of operation in 2021. Moreover, the number of successful companies in this state has been decreasing in recent years — startup metrics show that around 77.68% of small businesses survived the first year in 2019, while 76.19% did so in 2020. For comparison, the average success rate of startups in the US is 81.70%. 

19. 38% of startups go under because the company runs out of money.

(CB Insights)

Keeping finances in check and raising new capital is vital for every business. Unfortunately, this is easier said than done — the companies that go bankrupt account for the highest percent of startups that fail.

20. 14% of small businesses fail because of team problems.

(CB Insights)

Having the right team in a business is essential for every entrepreneur. Unfortunately, a company has a small chance of survival if there is disharmony among the team members. CB Insights statistics state that up to 14% of startups fail due to weak and disorganized teams.

Final Words

As startup statistics show, the small business industry is very competitive — for a company to survive, you need to do extensive research and gather a strong team. You also have to keep an eye on your venture’s financial plan, as bankruptcy is the most common pitfall on the way to a successful startup.

If you had any second thoughts about starting a company on your own or not, we hope these statistics have cleared some of the haze. Although some numbers might seem discouraging, they shouldn’t stop you from chasing your dreams and turning them into reality.

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