Business Statistics You Should Know in 2024

Discover the key business statistics that every business owner should know. Learn what you need to know to make informed decisions and drive success.

Business statistics reveal what is going on in the business world. Statistics provide a way to assess, evaluate, and predict the current state of business so you can build a future for yourself or your company. Keep reading for some interesting business facts that entrepreneurs and business people should know.

Table of Contents

General SME Statistics

1. There are about 582 million entrepreneurs on the earth

Entrepreneurship is on the rise around the world according to a Global Entrepreneurship Monitor report there is an upward trend. Financial Times data shows that the pandemic has triggered a surge in business start-ups across major economies.

The USA has received a 95% increase in new business applications in 2020. France experienced a 20% bump in startup applications, and Japan registered 14% more businesses than the same month in 2019.

2. Small businesses make up for 90% of all global companies

According to the World Bank, Small and Medium Enterprises are the backbone of the world economy. 90% of world businesses are SMEs and they provide 50% of jobs worldwide.

The World Bank also notes small businesses are less likely to get loans than large firms. Small businesses often rely on internal funds, cash from family, and personal savings to fund their companies. Around 65 million firms are expected to have unmet financing needs each year.

3. There are an estimated 334 million companies worldwide

According to Statista, the estimated number of companies is approximately 333.34 million worldwide in 2023. This is a marginal growth from 2021 when there were 314.21 million.

4. Around 50% of small businesses start at home

The research found that about 50% of all small businesses are home launched. The number of home-based startups and small businesses is rising. This trend has been growing since the Covid-19 world pandemic breakout.

People start businesses for different reasons. Yet, research by Guidant shows interesting results the question. Around 29% of the people said they were motivated by the desire to be their own boss.

Among the popular reasons is being dissatisfied with the standard workplace and wanting to pursue a specific passion. Only 2% started a business because there was an opportunity in the market.

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Small Business Owners Statistics

6. 44% of small business owners are between 39 and 54 years old

Gen X group (which is 39 to 54-year-olds) made about 44% of small business owners, according to The Guidant Financial trends index for 2021. Baby boomers (people born between 1946 and 1964) own around 41% of small businesses. Millennials currently make up around 12% of small business owners, but the number is growing.

Guidant financial also found that men make up the majority of business owners at 66%.

7. About 54% of small business owners have a bachelor’s degree or higher

Starting a business has no qualification rule. The majority of small business owners seem to have a level of bachelor’s degree education or higher. Fundera found that 15% of people in the survey had some type of college education, 32% had a bachelor’s degree, and only 13% had a Master’s degree.

8. 56% of small business owners struggle to find suitable employees

More than 50% of small business owners struggle to find the best-fit employees to help them grow their small businesses.

Indeed’s research found that owners also say that finding the right talent is harder than it used to be. But, 35% of respondents believe that attracting the right talent has become more difficult compared to five years ago

9. Working overtime is common for small business owners

Fundera’s research learned that being your boss and working from home doesn’t mean more free time. Around 81% of business owners work overtime, this usually includes working during the night as well as during the day.

Although they work flexible hours, around 89% of small business owners also say they work on weekends to keep up with their busy schedules.

10. The number one cause of business failure is low sales and cash flow

A company may close due to personal reasons. Studies show that 1 in 12 businesses close every year because of low sales and cash flow.

Similarly, in another survey, 42% of businesses said they failed because they had no market fit. 23% didn’t have the right team. 19% failed because they were outcompeted.

11. 92% of small business owners don’t regret starting their company

Though starting a small business has challenges, requires a lot of commitment and work, business owners don’t regret starting them. Around 92% of business owners are recorded to not regret starting their business. This is evident given that around 70% of small business owners work more than 40 hours a week.

12. Only 63% of businesses continued to be profitable during COVID-19

According to Guidant financial, around 41% of companies experienced a negative change in business operations since the COVID-19 pandemic. Only 63% of companies overall were profitable in 2020.

About 4% of companies expected their companies to fail as a result of the pandemic. Of the group that was surveyed 78% believed their company could survive. The most common impact of COVID on businesses was a loss of revenue.

13. 60% of small businesses closed down during to Pandemic

According to Yelp’s Economic Impact Report, about 60% of small businesses halted operations or shut down because of the pandemic. The number of small companies closing down due to the impact of the pandemic grew gradually since April 2020.

14. Around 50% of small businesses survive more than 5 years

About 50% of small businesses will survive for five years or longer and only 30% will make it to 10 years or longer. This data focuses on the average success rate of a business without the impact of a world pandemic.

Additional Small Business Statistics

Small business employ 61.7 million workers in the United States alone.

By employing 61.7 million people, small businesses contribute to 46.4 percent of the total number of US employees.

72% of small businesses have websites

72% of small businesses have created and maintain websites. A website is a digital platform that allows businesses to showcase their products, services, contact information, and other relevant details to potential customers. As the transition to online commerce and remote work continues, businesses have come to recognize the significance of establishing an online presence. This recognition stems from the need to effectively engage a broader audience and maintain competitiveness within the contemporary digital environment.

96% of small businesses use social media.

a vast majority of small businesses (96%) utilize social media platforms for various purposes. Social media provides businesses with a way to connect with their audience, share updates, promote products or services, and engage in conversations with customers. It’s a powerful tool for marketing, customer engagement, and brand building.

Brands can promote their brands and products through social media, videos, or by incorporating ads into regular videos. Today, trendy products such as Neon Signs Custom, clothing, and fashion products are common. Brands can also collaborate with social media influencers to display corporate logos to create a deeper brand impression.

Custom neon signs
Custom Neon Signs

SME Trend Statistics

15. 30% of pandemic entrepreneurs say they’ll never open a physical store

A Salesforce survey shows a 24% increase in the number of small businesses founded in the United States between 2020 and 2021 (COVID pandemic). However, these companies operate differently from a standard startup or small business. The survey shows 30% of pandemic entrepreneurs never want to open a physical store.

Salesforce also found that 32.9% of people started a business because they were unable to work during the pandemic and in some cases furloughed.

16. Food and restaurant businesses are growing fastest

People will always eat and there will always be a market for food. The Guidant Financial research found that the food and restaurant industry was one of the fastest-growing sectors in 2020. The sector experienced a 12% growth rate. Retail and business services followed at 11 % growth rate and business services.

17. 72% of small business owners feel optimistic about the future

Salesforce research found that around 72% of small business owners feel optimistic about the future. In the last year (2020), about 72% of small business owners grew their online business presence, and 71% said they survived the world pandemic because they invested in digital transformation.

18. VC in Africa tech is expected to reach $4.7 billion in 2022

In 2022 Statistica, venture capital investment is expected to grow sharply to about $4.7 billion. This growth in investment is expected to grow to be $6.8 billion by 2023. The forecast includes 2025, where venture capital investment in Africa is expected to exceed $10 billion.

19. Blockchain market size to reach $ 7.6 billion in 2022

According to Market Watch, the size of global blockchain market size is expected to reach $7.6 billion. This explosion in growth represents an increase of almost 1846% from 2017!

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20. There are 4 billion daily email users

Email marketing is enjoying a revival with a healthy return on investment. Not only is email marketing fairly easy for business owners to do, but it’s one of the most affordable tools. Email marketing on average generates $36 for every $1 spent.

21. There are more than 20,000 Co-working spaces worldwide

Co-working spaces are an experimental way of working, but a great resource for entrepreneurs. According to Co-working Resources, there will be more than 40,000 co-working spaces by 2024.

Fintech (financial technology) refers to cutting-edge digital technology that aims to improve financial services.

The financial technology sector is growing at a compound annual growth rate (CAGR) of more than 25% rate and is one of the fastest-growing in the world. Experts predict that in 2022, over $310 billion will be invested in the sector.

Looking for business facts so you can make informed business decisions? Look at the infographic below:

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Tumisang Bogwasi
Tumisang Bogwasi

2X Award-Winning Entrepreneur | Empowering Brands to Generate Leads, Grow Revenue with Business Strategy and Digital Marketing | Founder, CEO of Fine Group