{"id":9884,"date":"2022-03-31T14:23:00","date_gmt":"2022-03-31T08:53:00","guid":{"rendered":"https:\/\/www.saasworthy.com\/blog\/?p=9884"},"modified":"2022-03-31T14:23:03","modified_gmt":"2022-03-31T08:53:03","slug":"small-business-statistics","status":"publish","type":"post","link":"https:\/\/dev.saasworthy.com\/blog\/small-business-statistics","title":{"rendered":"10 Small Business Statistics To Know in 2022"},"content":{"rendered":"\n<p>A small unit of the business that is privately held by a corporation or has a sole proprietor is considered a small business. It earns less yearly revenue and also employs less number of workers compared to a large business. But the character of the businesses varies from industry to industry.&nbsp;<\/p>\n\n\n\n<p>Small businesses need to be defined carefully in order to protect and promote them. Generally, they get special subsidies and benefits from the government to help them compete against the big market-share holders in their industry. Banks also provide easy loans to these business units, but it\u2019s in most cases independently run.&nbsp;<\/p>\n\n\n\n<p>It is estimated that there are around <a href=\"https:\/\/globalnaps.org\/issue\/small-medium-enterprises-smes\/#:~:text=The\\%20approximately\\%20400\\%20million\\%20SMEs,of\\%20economies\\%20around\\%20the\\%20world.\" class=\"ek-link\">400 million<\/a> new entrepreneurs who start small businesses every day. Small businesses or \u201cSMEs\u201d are regarded as the pillars of the economy for generating the flow of cash in and out of individual towns and cities. With the rise of digital technology, it has been easier to launch a small business with very little initial investment these days.\u00a0<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_17 counter-hierarchy counter-decimal ez-toc-grey\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/dev.saasworthy.com\/blog\/small-business-statistics\/#10_Small_Business_Statistics_You_Need_To_Know\" title=\"10 Small Business Statistics You Need To Know\u00a0\">10 Small Business Statistics You Need To Know\u00a0<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/dev.saasworthy.com\/blog\/small-business-statistics\/#1_Need_to_Know_the_Number_of_Small_Businesses_in_the_US\" title=\"1. Need to Know the Number of Small Businesses in the US&nbsp;\">1. Need to Know the Number of Small Businesses in the US&nbsp;<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/dev.saasworthy.com\/blog\/small-business-statistics\/#2_Number_of_Jobs_Created_by_Small_Businesses\" title=\"2. Number of Jobs Created by Small Businesses&nbsp;\">2. Number of Jobs Created by Small Businesses&nbsp;<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/dev.saasworthy.com\/blog\/small-business-statistics\/#3_SMEs_are_Major_Players_in_Global_Economic_Growth\" title=\"3. SMEs are Major Players in Global Economic Growth\u00a0\">3. SMEs are Major Players in Global Economic Growth\u00a0<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/dev.saasworthy.com\/blog\/small-business-statistics\/#4_The_Most_Common_Reason_for_Opening_Your_Own_Business\" title=\"4. The Most Common Reason for Opening Your Own Business&nbsp;\">4. The Most Common Reason for Opening Your Own Business&nbsp;<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/dev.saasworthy.com\/blog\/small-business-statistics\/#5_Covid_-19_Hitting_Small_Businesses_Hard\" title=\"5. Covid -19 Hitting Small Businesses Hard&nbsp;\">5. Covid -19 Hitting Small Businesses Hard&nbsp;<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/dev.saasworthy.com\/blog\/small-business-statistics\/#6_Looking_for_a_Side_Business_is_the_New_Option\" title=\"6. Looking for a Side Business is the New Option&nbsp;\">6. Looking for a Side Business is the New Option&nbsp;<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/dev.saasworthy.com\/blog\/small-business-statistics\/#7_Percentage_of_Small_Businesses_Fail\" title=\"7. Percentage of Small Businesses Fail&nbsp;\">7. Percentage of Small Businesses Fail&nbsp;<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/dev.saasworthy.com\/blog\/small-business-statistics\/#8_The_Primary_Reason_for_Failure\" title=\"8. The Primary Reason for Failure\u00a0\">8. The Primary Reason for Failure\u00a0<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/dev.saasworthy.com\/blog\/small-business-statistics\/#9_The_Biggest_Challenge_for_Small_Businesses\" title=\"9. The Biggest Challenge for Small Businesses&nbsp;\">9. The Biggest Challenge for Small Businesses&nbsp;<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/dev.saasworthy.com\/blog\/small-business-statistics\/#10_Top_Digital_Marketing_Channel_Among_Small_Business_Owners\" title=\"10. Top Digital Marketing Channel Among Small Business Owners&nbsp;\">10. Top Digital Marketing Channel Among Small Business Owners&nbsp;<\/a><\/li><\/ul><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/dev.saasworthy.com\/blog\/small-business-statistics\/#Takeaways_from_Small_Business_Statistics\" title=\"Takeaways from Small Business Statistics&nbsp;\">Takeaways from Small Business Statistics&nbsp;<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/dev.saasworthy.com\/blog\/small-business-statistics\/#Read_More\" title=\"Read More\">Read More<\/a><\/li><\/ul><\/nav><\/div>\n<h2 id=\"10-small-business-statistics-you-need-to-know\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"10_Small_Business_Statistics_You_Need_To_Know\"><\/span><strong>10 Small Business Statistics You Need To Know\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/blog.yelp.com\/wp-content\/uploads\/2019\/02\/startingasmallbiz.png\" alt=\"Small Business\" width=\"644\" height=\"515\"\/><\/figure><\/div>\n\n\n\n<h3 id=\"1-need-to-know-the-number-of-small-businesses-in-the-us\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Need_to_Know_the_Number_of_Small_Businesses_in_the_US\"><\/span><strong>1. Need to Know the Number of Small Businesses in the US&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The current statistics reveal that there are 32.5 million small businesses in the US and this alone accounts for 99.9 percent of all US businesses (SBA, 2021).&nbsp;<\/p>\n\n\n\n<p>According to the Small Business Administration (SBA), a small business is a firm that has less than 500 employees and this implies that many high-valued startups in the US are actually small businesses. But, in the European Union, businesses that have fewer than 50 employees are considered small businesses. In Australia, companies with fewer than 15 employees are considered small businesses. Small<\/p>\n\n\n\n<p>business stats show that in America small businesses have fewer than 500 employees. This means there are around 38 million businesses with fewer than 100 employees and 23 million with fewer than 20 employees.&nbsp;<\/p>\n\n\n\n<h3 id=\"2-number-of-jobs-created-by-small-businesses\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Number_of_Jobs_Created_by_Small_Businesses\"><\/span><strong>2. Number of Jobs Created by Small Businesses&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Across the globe, it is seen that small businesses generate the majority of jobs. According to the studies by SBA, small companies create <a href=\"https:\/\/www.fundera.com\/blog\/small-businesses-job-creation\" class=\"ek-link\">1.5 million jobs <\/a>annually which constitutes 64 percent of new jobs created in the US (Fundera, 2019).\u00a0<\/p>\n\n\n\n<p>The statistics of the past few years reveal that small businesses have always been an essential part of the growth and the US economy. They provide job opportunities, financial growth, and an array of unique products and services. So whether or not they become larger corporations, they contribute to economic growth.\u00a0<\/p>\n\n\n\n<h3 id=\"3-smes-are-major-players-in-global-economic-growth\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_SMEs_are_Major_Players_in_Global_Economic_Growth\"><\/span><strong>3. SMEs are Major Players in Global Economic Growth\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>An estimated 90 percent of the business population represents small- and medium-sized businesses. And statistics showed that small companies account for creating a great number of jobs.&nbsp;<\/p>\n\n\n\n<p>In the past few years, SMEs have generated employment and given better access to global markets, and helped build knowledge networks. We have also witnessed that digitalization has played an important role in the growth of SMEs in the global economy. SMEs contribute notably to global economic growth by creating employment, boosting sustainable industrialization, and encouraging innovation.<\/p>\n\n\n\n<h3 id=\"4-the-most-common-reason-for-opening-your-own-business\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_The_Most_Common_Reason_for_Opening_Your_Own_Business\"><\/span><strong>4. The Most Common Reason for Opening Your Own Business&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It is seen that the most common reason confirmed by 29 percent of the entrepreneurs is that they started their own business because they wanted to be their own boss.&nbsp;<\/p>\n\n\n\n<p>The second most common purpose for starting one\u2019s own business is frustration with the corporate US. 17 percent selected this as their primary cause. There are some other factors that include wanting to follow one\u2019s own passion, making use of the opportunity, ambition, and simply not feeling ready to retire.\u00a0<\/p>\n\n\n\n<p>Apparently, it is seen that people across the world decide to start their own businesses for financial freedom.\u00a0<\/p>\n\n\n\n<h3 id=\"5-covid-19-hitting-small-businesses-hard\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Covid_-19_Hitting_Small_Businesses_Hard\"><\/span><strong>5. Covid -19 Hitting Small Businesses Hard&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As the world faces crisis and uncertainty because of the coronavirus pandemic impacting small businesses, it is becoming more challenging to manage businesses.\u00a0<\/p>\n\n\n\n<p>According to some authentic sources, <a href=\"https:\/\/dataforgood.facebook.com\/\" class=\"ek-link\">nearly one-third (31 percent) <\/a>of small businesses in the US have become non-operational impacted by the Covid-19 pandemic.\u00a0<\/p>\n\n\n\n<p>As measures to adapt to the new reality the pandemic has created, many small business owners have gone online by selling their products and services online.&nbsp;<\/p>\n\n\n\n<h3 id=\"6-looking-for-a-side-business-is-the-new-option\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_Looking_for_a_Side_Business_is_the_New_Option\"><\/span><strong>6. Looking for a Side Business is the New Option&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It is estimated that Millennials and Gen Zers are 188 percent more likely to create a side hustle, compared to Baby Boomers or traditionalists (Salesforce, 2019).<\/p>\n\n\n\n<p>With the rise of online marketplaces, and low code or no-code and outsourcing advantages, it\u2019s become easier to run a business from the comfort of your own home and the millennials are going to make more use of the opportunity.\u00a0<\/p>\n\n\n\n<h3 id=\"7-percentage-of-small-businesses-fail\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"7_Percentage_of_Small_Businesses_Fail\"><\/span><strong>7. Percentage of Small Businesses Fail&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The current statistics show that more than 20 percent of small enterprises fail in the first year of inception and nearly 50 percent of small startups fail within the first five years (Bureau of Labor Statistics, 2021).&nbsp;<\/p>\n\n\n\n<h3 id=\"8-the-primary-reason-for-failure\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"8_The_Primary_Reason_for_Failure\"><\/span><strong>8. The Primary Reason for Failure\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The foremost reason for failure is the lack of market demand. 42 percent of small businesses fail solely because of this reason (CB Insights, 2019). The need for what you\u2019re offering to the customers is to be heavily researched before starting the business. You need to have a viability check.&nbsp;<\/p>\n\n\n\n<p>Although statistics show that 29 percent of new businesses failed because of cash crunch or lack of finance.&nbsp;<\/p>\n\n\n\n<h3 id=\"9-the-biggest-challenge-for-small-businesses\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"9_The_Biggest_Challenge_for_Small_Businesses\"><\/span><strong>9. The Biggest Challenge for Small Businesses&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The most challenging factor is the poor quality of labor. 52 percent of the respondents said that the most important problem for small businesses was labor quality (CNBC, 2019). It\u2019s difficult to hire qualified individuals. The second challenge is the financial challenge. As smaller corporations don\u2019t get the good investment it becomes extremely difficult to manage their finances.\u00a0<\/p>\n\n\n\n<h3 id=\"10-top-digital-marketing-channel-among-small-business-owners\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"10_Top_Digital_Marketing_Channel_Among_Small_Business_Owners\"><\/span><strong>10. Top Digital Marketing Channel Among Small Business Owners&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It has been proven that social media is a preferred favorite for small businesses. In fact, 64 percent of surveyed small businesses make use of social media in their marketing strategy (The Manifest, 2019). After social media, the next most popular<\/p>\n\n\n\n<p>site of advertising is online marketing (49 percent), followed by print marketing (36 percent) and TV (22 percent).&nbsp;<\/p>\n\n\n\n<p>Statistics show that social media marketing has been an effective tool for businesses, as 73 percent of marketers believe that their efforts through social media marketing have been \u201csomewhat effective\u201d or \u201cvery effective\u201d for their business.&nbsp;<\/p>\n\n\n\n<h2 id=\"takeaways-from-small-business-statistics\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Takeaways_from_Small_Business_Statistics\"><\/span><strong>Takeaways from Small Business Statistics&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>2022 is undoubtedly going to be a crucial year for small businesses. With the competition always on the rise, these statistics will help with better decision-making for small business owners.\u00a0<\/p>\n\n\n\n<p>If you plan to start one then brainstorming small business ideas will be helpful. Knowing the current trends will help you tackle difficulties and challenges in a more dynamic manner.<\/p>\n\n\n\n<h2 id=\"read-more\" class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Read_More\"><\/span>Read More<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><a href=\"https:\/\/dev.saasworthy.com\/blogtop-blogging-statistics\">Top Blogging Statistics For 2022<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/dev.saasworthy.com\/blogcrm-statistics-2022-what-to-look-for\">CRM Statistics 2022 \u2013 What to Look for?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Small businesses need to be defined carefully in order to protect and promote them. Read to know important Small Business Statistics that will help your business grow in 2022.<\/p>\n","protected":false},"author":7,"featured_media":9886,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_editorskit_title_hidden":false,"_editorskit_reading_time":4,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","footnotes":""},"categories":[200],"tags":[187],"class_list":{"0":"post-9884","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-statistics","8":"tag-research-report"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>10 Small Business Statistics To Know in 2022 - SaaSworthy Blog | Top Software, Statistics, Insights, Reviews &amp; Trends in SaaS<\/title>\n<meta name=\"description\" content=\"Small businesses need to be defined carefully in order to protect and promote them.\u00a0Read to know important Small Business Statistics that will help your business grow in 2022.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dev.saasworthy.com\/blog\/small-business-statistics\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"10 Small Business Statistics To Know in 2022 - SaaSworthy Blog | Top Software, Statistics, Insights, Reviews &amp; 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