74 Small Business Statistics 2025  (New Trends & Facts) 

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.  

Small Business Statistics 2025 (Top Picks)

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

• There are 400 million small businesses worldwide.
• There are 33.3 million small businesses in the United States
• With 4.2 million small businesses, California has the maximum number of small businesses in the United States.
• Only 25% of small businesses survive more than 15 years. 
• 24% of small business owners plan to increase their staff.
• 54% of small business owners plan to increase their spending on social media.
• 86.3% of small business owners earn less than $100,000 annually. 
• 63% of small businesses are profitable. 
• 16% of small business owners are millennials in the United States.
• 36% to 53% of small businesses are sued every year.
• Small business owners take an average of $633,000 in bank loans.  
• Almost 50% of all employees in the United States are employed by small businesses. 
• In the United States, small businesses generated around 13 million jobs in the past 25 years.
• 14% of small businesses failed because they ignored their customers. 
• 22% of small businesses said recruiting and retention is their top challenge while running a small business. 

General Small Business Statistics For 2025

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

Here a table shows the survival rate of small businesses.

• 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. 

• 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. 

• The cost to start a business for 27% of small businesses was $250 to $500k. 

Here a table shows the cost of starting a small business in 2024. 

• 32% of small businesses started a new franchise.

Here, a table shows small businesses by business type. 

• 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.

• 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. 

• Globally, there are 400 million small businesses. 
• There are 33.2 million small businesses in the United States.
• 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. 

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. 

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

• 54% of small business owners plan to increase their spending on social media. 
• 24.41% of small businesses depend on Social Media to drive revenue. 
• 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. 

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 on small business finance. 

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

Here, a table shows the profitability of small businesses. 

• 13% of small businesses took an SBA loan to finance their business. 

Here a table shows the top business financing sources. 

• Small businesses create 44% of the United States’ economic activity (GDP). 
• 9% of small businesses make more than $1 million.
• 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. 

• 16% of small business owners are millennials in the United States.
• Less than 1% of small business owners are Gen Zs in the United States.

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

• More than 47% of small business owners have a bachelor’s degree

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

• 26% of small business owners are females.  
• 1.2 million women-owned businesses employ over 11 million people.
• Almost 20% of small business owners are from minority groups.
• 21.7% of small business owners are immigrants. 
• 3% of small businesses are owned by Asians in the United States. 

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

• Veterans own 6.1% of small businesses.
• 36% of small business owners are very happy with their businesses. 

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

• 43% of small business owners support the Republican Political Party. 

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

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. 

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

• 36% to 53% of small businesses are sued every year.
• Around 45% of small businesses are going through litigation.
•  90% of businesses faced a lawsuit at least once in their lifespan. 
• There are 12 million lawsuits filed against small businesses every year.
• More than 75% of small business owners are worried they will face a lawsuit.
• 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. 

• Small business owners take an average of $633,000 in bank loans. 
• Only 26.9% of small businesses get loans from major financial institutions. 
• 43% of small business owners go to small business lenders for loans.
• 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. 

• Almost 50% of all employees in the United States are employed by small businesses. 
• 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. 

• 81.63% of small businesses do not have any employees in the United States.

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

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.

• In the United States, small businesses generated around 13 million jobs in the past 25 years.
• 2 out of 3  jobs are added to the economy of the United States by small businesses. 
• The professional and business services industry generated more than 1.1 million new jobs last year. 
• 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. 

• Only 14% of jobs will be recovered in 2023, which were lost during the COVID-19 Pandemic, and 87% can be recovered by 2030.
• 159.6 million Americans will be employed in 2023.

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

• 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. 

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

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

Source: guidantfinancial.com.

Small Business Failure Statistics

When starting a new business, knowing 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. 

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

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

• 34.6% of small businesses remain open in 2022 which were opened in 2012. 
• 14% of small businesses failed because they ignored their customers. 

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

• 32.8% of small business owners said lack of capital is the reason to close their business. 

Here, a table shows the factors that caused owners to close their small businesses. 

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. 

Here a table shows the top challenges for small businesses in 2024.

• 26% of small businesses say inflation was their most important problem one year before (2022) in the United States.

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

• 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.

Source: Guidantfinancial.com, Statista.

Conclusion: More Than 400 Million Small And Medium-sized Businesses Exist Worldwide

Small businesses are the backbone of the global economy, with 400 million worldwide and 33.2 million in the U.S. alone. They provide 70% of global employment and create 44% of U.S. economic activity. While 63% are profitable, they face challenges like inflation (23% cite it as their top concern) and staffing issues. 

Only 25% survive beyond 15 years, highlighting the need for resilience. As we progress through 2025, small business owners must leverage digital strategies, with 54% planning to increase social media spending to adapt and thrive in a developing economic prospect.