RESOURCES ARTICLE

All the Small Business Statistics You Need to Know

In the small business world, it seems there's always a new trend to follow or a new update you need to know about. But, what about the fundamentals?

We created this infographic to get back to the basics! Check out our latest infographic to learn the small business stats you really need to know.

Here's the full list of small business statistics for your reference:

What is a small business?

The Small Business Association defines a small business as “an organization with fewer than 500 employees.”

How much funding do small business owners need to start a new company?

  • 64% $10,000 or less.
  • 12% $10,000-$20,000.
  • 11% $20,000-$50,000.
  • 13% $50,000+.
  • This is largely self-funded.

What problems do small businesses face?

  • 49% economic uncertainty
  • 29% decline in customer spending
  • 29% regulatory burdens

How long does the average small business stay open?

  • 67% of all businesses survive at least two years.
  • 50% survive at least five years.
  • 33% survive at least 10 years.

Why do small businesses fail?

  • 82% fail because of cash flow issues.
  • 42% find that there’s no market need for their products or services.
  • 19% are outcompeted.

How do small businesses help the economy?

  • Small businesses account for 62% of all U.S. jobs.
  • 48% of private sector employees are employed by small businesses.

Are small businesses keeping up with the digital landscape?

Small Business Marketing Goals

  • 31% driving sales
  • 25% retaining current customers

Small Business Marketing Strategy

  • 46% of small businesses don’t have a website.
  • 35% think their operation is too small to have a website.
  • 47% handle marketing on their own.
  • 22% use mobile marketing.
  • 15% do not use digital marketing.

Do small businesses need a digital marketing strategy?

  • 60% of consumers say small businesses need a social media presence.
  • 75% say online reviews are somewhat or very important.
  • 45% will not choose a small business if it lacks a website.
  • 89% of shoppers research online before making an in-store purchase.
  • 97% start their search with a search engine.

Sources:

https://digital.com/blog/small-business-statistics/

https://fitsmallbusiness.com/small-business-statistics/

https://www.sba.gov/sites/default/files/advocacy/SB-FAQ-2017-WEB.pdf

https://www.infusionsoft.com/resources/small-business-marketing-trends-report

https://www.score.org/blog/how-do-consumers-discover-small-businesses