74+ Small Business Statistics For 2024 (Demographics & Trends)

Small Businesses are the backbone of the economy. Small and medium businesses provide 70% of global employment. 

According to Forbes, 99.9% of businesses in the United States are small, accounting for 33.2 million small businesses. 

If you want to start and run a small business, then here I have compiled complete insights into small business statistics. 

This article will discuss small businesses, such as the number of small businesses, demography, employees, finance, lawsuits, etc.  

Without wasting time, let’s get into it. 

Small Business Statistics 2024 (Top Picks)

Small businesses are a vital part of the economy. Here are some key statistics and trends regarding their growth and survival.

  1. As we enter into 2024, there are 400 million small businesses worldwide.
  1. There are 33.2 million small businesses in the United States as ofthe beginning of 2024.
  1. With 4.2 million small businesses, California has the maximum number of small businesses in the United States.
  1. Only 25% of small businesses survive more than 15 years. 
  1. 26% of small business owners plan to increase their staff in 2024.
  1. 54% of small business owners plan to increase their spending on social media.
  1. 86.3% of small business owners earn less than $100,000 annually. 
  1. 63% of small businesses are profitable. 
  1. 12.9% of small business owners are millennials in the United States.
  1. 36% to 53% of small businesses are sued every year.
  1. Small business owners take an average of $633,000 in bank loans.  
  1. Almost 50% of all employees in the United States are employed by small businesses. 
  1. In the United States, small businesses generated around 13 million jobs in the past 25 years.
  1. 14% of small businesses failed because they ignored their customers. 
  1. 22% of small businesses said recruiting and retention is their top challenge while running a small business in 2024. 

General Small Business Statistics For 2024

  1. Only 25% of small businesses survive more than 15 years. 

Here a table shows the survival rate of small businesses.

Number Of YearsSurvival Rate
80%
555%
1030%
1525%
  1. 29% of respondents said being ready to be their boss is their biggest motivation to start a small business.

Here a table shows the motivations behind starting a new small business. 

MotivationShare Of Respondents
Ready to be their boss29%
Dissatisfied with corporate in the U.S.17%
They wanted to follow their passion16%
Opportunity presented itself12%
Inspiration for new business9%
Not ready to retire7%
Laid off/Job outsourced7%
  1. 26% of small business owners plan to increase their number of staff in 2023. 

Here a table shows the top plan of small business owners for 2023. 

Top PlanShare Of Respondents
Increase Staff26%
Expand or Remodel Business18%
Invest in Digital Marketing18%
Invest in Traditional Marketing10%
Invest in Information Services Technology7%
Invest in Accounting Services Technology6%
  1. The cost to start a business of 27.3% of small businesses was $250 to $500k. 

Here a table shows the cost of starting a small business in 2023. 

CostShare Of Respondents
$50K3.7%
$50K to $175K26.2%
$175K to $250K14.2%
$250K to $500K27.3%
$500K to $1 million16.3%
More than $1 million12.3%
  1. 35% of small businesses started a new franchise.

Here a table shows the small business by business type. 

Business TypeSmall Businesses
New Independent Business21%
Bought Independent Business33%
New Franchise35%
Bought existing franchise11%
  1. 48% of small businesses feel the economy is going into a long-term recession. 

Here a table shows the responses of small businesses when they ask whether they feel the economy is going into a long-term recession.

AnswerShare Of Respondents
Yes48%
No19%
Unsure33%
  1. 65% of small businesses feel about investing in Artificial Intelligence.  

Source: Guidantfinancial.com, Zippia, 99Firms.

Number Of Small Business Statistics

According to the U.S. small business Administration, more than 33 million small businesses exist in the United States as of 2023. 

Here we will see all the necessary statistics about the number of Small Businesses. 

  1. Globally, there are 400 million small businesses as of 2024. 
  1. There are 33.2 million small businesses in the United States as the start of 2024.
  1. California has the maximum number of small businesses in the United States, with 4.2 million. 

Here a table shows the number of small businesses by State. 

StatesNumber Of Small Businesses
Alabama396,432
Alaska73,354
Arizona571,495
Arkansas249,907
California4,203,260
Colorado630,113
Connecticut346,950
Delaware82,121
D.C.76,083
Florida2,494,279
Georgia1,051,071
Hawaii132,640
Idaho162,905
Illinois1,233,572
Indiana512,348
Lowa270,484
Kansas254,297
Kentucky351,260
Louisiana447,440
Maine147,270
Maryland594, 124
Massachusetts669,224
Michigan873,722
Minnesota520,110
Mississippi257,404
Missouri532,277
Montana120,246
Nebraska176,358
Nevada270,079
New Hemisphere134,760
New Jersey884,049
New Mexico154,804
New York2,168,799
North Carolina913,398
North Dakota73,142
Ohio949,479
Oklahoma350,718
Oregon377,860
Pennsylvania1,058,033
Rhode Island101,516
South Carolina418,031
South Dakota86,550
Tennessee603,310
Texas2,679,964
Utah287,803
Vermont77,614
Virginia745,886
Washington608,956
West Virginia113,410
Wisconsin452,594
Wyoming66,653

Source: 99Firm, Forbes.

Small Business And Social Media Statistics

According to Statista, 4.26 billion people are using social media. It is necessary for every business to promote its business on social media. 

Small Business And Social Media Statistics

Here we will see some interesting statistics about Small businesses and social media. 

  1. 54% of small business owners plan to increase their spending on social media. 
  1. 24.41% of small businesses depend on Social Media to drive revenue. 
  1. 94% of small businesses post about their business daily on social media. 

Here a table shows the frequency of small businesses’ posting on social media. 

FrequencyShare Of Respondent
Daily94%
Weekly79%
Monthly52%
Less frequently than monthly65

Source: hostinger.com.

Small Business Finance Statistics

In the United States, 63% of small businesses are profitable and earning well from their business. It is essential to see the small business finance statistics before you start your business. 

Here we will see all these essential statistics of Small Business Finance. 

  1. The average revenue of small businesses is $44,000 annually
  1. 86.3% of small business owners earn less than $100,000 annually. 
  1. 63% of small businesses are profitable. 

Here a table shows the profitability of the small business. 

ProfitabilitySmall Businesses
Temporarily Closed11%
Lost Revenue23%
Profitable63%
  1. 13% of small businesses took an SBA loan to finance their business. 

Here a table shows the top business financing sources. 

Top SourcesShare Of Respondents
401(k) Business Financing/ROBs52%
Cash19%
SBA loans13%
Term and Unsecured loans4%
Line of Credit3%
  1. Small businesses create 44% of the United States’ economic activity (GDP). 
  1. 9% of small businesses make more than $1 million.
  1. 40% of small businesses have debts of more than $100,000. 

Source: Zippia, hostinger.com.

Small Business Owner Demography Statistics

Gen X and Baby Boomers dominate the small business market. Gen Z contributes only 1% of small businesses. 

Here we will see all about Small business owners’ Demography by age, gender, education, etc. 

  1. 12.9% of small business owners are millennials in the United States.
  1. Only 1% of small business owners are Gen Zs in the United States.

Here a table shows the small business owners by age group. 

Age GroupShare In Small Business
Gen Z1%
Millennials12.9%
Gen X47.2%
Baby Boomers39.6%
Post War0.3%
  1. 31% of small business owners have associate degrees. 

Here a table shows small business owners’ level of Education. 

Education LevelShare Of Small Business Owners
Associate Degree31%
High School/GED30%
Master’s Degree18%
Bachelor’s Degree17%
Doctorate4%
  1. 21.4% of small business owners are females.  
  1. 1.2 million women-owned businesses employ over 11 million people.
  1. Almost 20% of small business owners are from minority groups.
  1. 21.7% of small business owners are immigrants. 
  1. 4.8% of small businesses are owned by Asians in the United States. 

Here a table shows the percentage of business owners by ethnicity. 

EthnicityPercentage Of Small Business Owners
White76.2%
Asian4.8%
Hispanic4.7%
African-American5.2%
Other Minorities 0.5%
  1. Veterans own 6.1% of small businesses.
  1. 37% of small business owners are very happy with their businesses. 

Here a table shows how small business owners are happy with their businesses. 

How Happy They AreShare Of Respondents
Very Unhappy4%
Somewhat Unhappy11%
Neutral13%
Somewhat Happy35%
Very Happy37%
  1. 42% of small business owners support the Republican Political Party. 

Here a table shows the small business owners by Political Party. 

Political PartyShare Of Respondents
Republican42%
Democrat19%
Libertarian7%
Unaffiliated32%

Source: Zippia, 99Firms, Luisazhou.com, Guidanatfinancial.com.

Small Business Lawsuit Statistics

Every year, 12 million lawsuits are filed against small businesses. Before starting a small business, it is essential to understand small business lawsuit statistics to avoid future problems. 

Small Business Lawsuit Statistics

Here are all the essential statistics about small business lawsuits that everyone wants to know. 

  1. 36% to 53% of small businesses are sued every year.
  1. Around 45% of small businesses are going through litigation.
  1.  90% of businesses faced a lawsuit at least once in their lifespan. 
  1. There are 12 million lawsuits filed against small businesses every year.
  1. More than 75% of small business owners are worried they will face a lawsuit.
  1. Small businesses with 1 million in earnings have almost $20,000 in litigation fees. 

Source: thezebra.com.

Small Business Loan Default Statistics

4 out of 10 small businesses go to small business lenders for the loan. Many small businesses take loans to finance their business. 

Here are some of the essential statistics about small business loan default statistics. 

  1. Small business owners take an average of $633,000 in bank loans
  1. Only 26.9% of small businesses get loans from major financial institutions. 
  1. 43% of small business owners go to small business lenders for loans.
  1. Overall, the average debt amount is $107,000

Source: thezebra.com.

Small Business Employees Statistics

7 out of 10 employees are employed by small and medium-sized businesses worldwide. Small businesses are providing a large number of employees. 

Here we will see some of the most important statistics about small business employees. 

  1. Almost 50% of all employees in the United States are employed by small businesses. 
  1. Only 16.36% of small businesses in the United States have 1 to 19 employees. 

Here a table shows the small businesses by employee size. 

The Number Of EmployeesSmall Businesses
No Employees27,104,006
1 to 19 employees5,431,541
20 to 499 employees650,003 
  1. 81.63% of small businesses do not have any employees in the United States.

Here a table shows the small business by the percentage of employees. 

The Number Of EmployeesSmall Businesses
No Employees81.63%
1 to 19 employees16.36%
20 to 499 employees1.95%

Source: Forbes.

Small Business Job Creation Statistics

For the last 25 years, small businesses have continuously created jobs and contributed significantly to the economy. 

This section will show all the essential statistics about small business job creation.

  1. In the United States, small businesses generated around 13 million jobs in the past 25 years.
  1. 2 out of 3  jobs are added to the economy of the United States by small businesses. 
  1. The professional and business services industry generated more than 1.1 million new jobs last year. 
  1. Education and Health Services has the most openings in the small business industry, with 34,725 jobs.  

Here a table shows the number of job openings across different industries. 

IndustryNumber Of Job Openings
Education and Health Services34,725
Professional and Business Services19,295
Wholesale and Retail Trade18,989
Manufacturing14,718
Leisure and Hospitality12,635
Construction11,271
Financial Activities10,725
Transportation and Utilities9,377
Public Administration7,410
Other Services7,186
Information2,721
Agriculture and Related2,291
Mining, Quarrying, and Oil and Gas  Extraction603
  1. Only 14% of jobs will be recovered in 2023, which were lost during the COVID-19 Pandemic, and 87% can be recovered by 2030.
  1. 159.6 million Americans will be employed in 2023.

Here a table shows the number of employed Americans from 2016 to 2023. 

YearNumber Of Employed Americans
2016151.4 million
2017153.3 million
2018155.8 million
2019157.5 million
2020147.8 million
2021152.6 million
2022158.3 million
2023159.6 million
  1. It is needed to create 600 million jobs globally to support the global workforce by 2030.  

Source: Forbes, Luisazhou.com.

Small Business Success Statistics

Here are some of the most important statistics about small business successes that you need to see. 

  1. Retail is the top industry in small business, with 18% of success. 

Here a table shows the most booming industries in small business. 

IndustryShare Of Respondents
Retail18%
Food and Restaurants12%
Health, Beauty, and Fitness Services10%
Construction and Contracting8%
Residential and Commercial Services7%

Source: guidantfinancial.com.

Small Business Failure Statistics

While starting a new business, knowing about small business failure statistics is essential. You can learn from others’ mistakes and run your business successfully. 

Here I have compiled all the essential statistics about small business failure. 

  1. Around 22% of small businesses close within a year.

Here a table shows the failure rate of small businesses by year. 

YearsFailure Rate
121.9%
231.8%
339.7%
445.7%
550%
653.6%
757.7%
861%
963.2%
1065.7%%
  1. 34.6% of small businesses remain open in 2022 which were opened in 2012. 
  1. 14% of small businesses failed because they ignored their customers. 

Here a table shows the reasons for the failure of Small Businesses. 

ReasonsShare Of Small Businesses
Cash Flow Issue82%
Lack of Demand42%
Lack of Talent23%
Lack of Business Model17%
Ignored their Customers14%
Poor Marketing14%
  1. 32.8% of small business owners said lack of capital is the reason to close their business. 

Here a table shows the factors because of why owners closed their small businesses. 

ReasonsSmall Businesses
Lack of Capital32.8%
Strong Competitors19.6%
Unsustainable Growth Rate18.75%
Lack of market Interest17.5%
Lack of Personal Business knowledge15.3%
Due to COVID-19 Pandemic1%

Source: thezebra.com, Zippia, Hostinger.com.

Small Business Challenges Statistics

There are many challenges to small businesses. But here, I have compiled some of the common challenges that small businesses face. 

  1. 22% of small businesses said recruiting and retention is their top challenge while running a small business in 2023. 

Here a table shows the top challenges for small businesses in 2023.

Top ChallengesShare Of Respondents
Recruiting and Retention22%
Inflation and Price Increases22%
Lack of Capital/Cash Flow14%
Supply Chain Issues11%
Marketing and Advertising8%
  1. 26% of small businesses say inflation was their most important problem one year before (2022) in the United States.

Here a table shows the fundamental problems small businesses had one year before (2022) in the United States.

The Most Important ProblemsShare Of Respondents
Inflation26%
Quality of Labor22%
Taxes15%
Cost of Labor11%
Cost/Availability of Insurance5%
Government Regulations8%
Poor Sales4%
Competition from large businesses0%
Finance and Interest rates0%
Others9%
  1. 28% of small businesses say inflation is their most important problem in the United States as of February 2023.

Here a table shows the essential problems small businesses have in the United States as of February 2023.

The Most Important ProblemsShare Of Respondents
Inflation28%
Quality of Labor21%
Taxes13%
Cost of Labor12%
Cost/Availability of Insurance5%
Government Regulations5%
Poor Sales4%
Competition from large businesses4%
Finance and Interest rates2%
Others6%

Source: Guidantfinancial.com, Statista.

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