101 Unexpected Entrepreneurship Statistics For A Blooming Future

Being an entrepreneur takes innovation, implementation, and determination. Here are some very interesting Entrepreneurship statistics to put things into perspective and give you an insight into this industry. In 2021 alone, 493 new billionaires have turned up on the Forbes Billionaires list and 88 among them are self-made Americans.

The world has seen an upsurge in the number of small business startups post-covid 19 as 60.87% of entrepreneurs wanted to be their own boss. Small business owners globally have felt optimistic about having their own companies and being entrepreneurs.

Let us get into the key findings of entrepreneurship statistics and get crucial insight into the industry and the factors affecting entrepreneurs around the globe.

Entrepreneurship Statistics: Key Findings

According to Forbes 2022, the world records for a total of 2688 billionaires among which 236 are new billionaires who have entered the list.
5.4 million new businesses have emerged in 2022. India alone records over 167000 businesses set up in FY22, the highest in the last 3 years.
As of 2022, globally there are more than 250 million women entrepreneurs.
The US Bureau of Labor Statistics states that over 9.6 million people are self-employed
There are 32.5 million small businesses in the US in 2021, among which 65.3% are currently profitable.
In the US 99.9% of businesses are small businesses which results in creating 64% of new jobs annually.
More than 50% of businesses started in the USA were minority-owned.
55% of small business owners say that dissatisfaction from working in a corporate gave them the motivation to be an entrepreneur.
88% of millionaires are self-made.
5.5 million entrepreneurs are family-based businesses that have been successfully carried forward.
About 83% of entrepreneurs in the US started their businesses from scratch.
59% of entrepreneurs worked in corporate jobs before starting their own business venture.
97.5% of self-employed professionals stated that they would never go back to the traditional employment process anymore and they are enjoying being their own boss.
More than 10% of entrepreneurs belong to the LGBT community.
6% of small business owners in America are Veterans.
In 2020, California had the highest number of entrepreneurs in the US.
Around 32% of entrepreneurs around the world are serial entrepreneurs who have founded or run more than one business.
Among aspiring entrepreneurs, more than 44% are boomers and 45% are Gen-X.
For every 1 dollar earned by a male entrepreneur, a female counterpart earns 91 cents.

Why Do People Become Entrepreneurs?

According to independent research, more than 60% of people wanted to be their own boss and thus started their own small businesses. Dissatisfaction with their present work arrangements was the second most popular reason with 17%. And the third reason was that 15% of people wanted to follow their passion. You can also check out some interesting small business statistics.

What Challenges Do Entrepreneurs Face?

The journey of Entrepreneurship is not a smooth one. Different types of hurdles arise at different growth stages of the business. Excluding the Covid pandemic where many small businesses had to shut down, 38% of entrepreneurs ran out of cash, 35% chose the wrong product and 20% got crushed by their competitors. Alongside this, according to NFIB 2021, 21% of small entrepreneurs face difficulty with quality of labor, 21% with taxes, 14% in maintaining government regulations, 13% in poor sales, 8% with competition from bigger brands, and 8% with insurance cost and availability.

Factors That Result in Successful Entrepreneurship

Most entrepreneurs have concluded that there is no 1 success recipe that works for all. But there are definitely some common factors that have contributed to their success.

According to a study conducted by National Business Capital and Services, about 38% of entrepreneurs stated that self-discipline was the key to their success.
Many successful female entrepreneurs stated that for them good communication skills (37%) and planned money management skills (34%) helped them in their entrepreneurship journey.
Additionally, 96% concluded that past sector or work experience has helped them in establishing a successful business.
89% of entrepreneurs stated that the lessons that they have learned in their past achievements have made them successful businessmen.
Company management teams or good managerial abilities have made 82% of businesses successful.
78% of entrepreneurs have learned from their failures and accordingly have set their goals high to achieve success.
For 73% of entrepreneurs, their professional networks helped them establish a successful venture compared to 61% of entrepreneurs whose personal and social network has acted as a success factor.

Entrepreneur Demographics

Here are some interesting entrepreneurship statistics based on different demographics.

1. Age:

No age restricts an individual to be an entrepreneur. Many start early and have been successful. However, studies claim that middle-aged men who start at around 40s run the most successful business. According to recent financial research, more than 59% of people who start businesses are in the age bracket of 40-50, and 36% are between 50-59. A total of 6 million entrepreneurs are under the age of 35. In the US alone, 22% of people chose to be entrepreneurs as they are not ready to retire.

2. Race:

Small Business Administration states around 17.8% of all small businesses are minority-owned. Among these 9.8% were Asian, 5.5% were Hispanic, 2.3% were African American, 0.5 % were native American and the rest were other pacific islanders. There is a significant wage gap difference based on race too. Asians are accounted for the highest followed by White, Hispanic, and African Americans.

3. Gender:

In extensive research conducted by Global Entrepreneurship Monitor, there are more than 250 million female entrepreneurs in the world. Women entrepreneurs make up 46% of black entrepreneurs. However, only 27.25% of small business owners in the US are female entrepreneurs. The percentage has seen a gradual rise and compared to 63% of men, 71 % of these women have started a business to create a difference. Moreover, 66% of women entrepreneurs chose business to increase their income model compared to 74% of men. But one of the most popular reasons why women chose business was because of job scarcity and they had to make their opportunity. Moreover, over the last 10 years, there has been around a 10% increase in female entrepreneurs in the business world.

4. Education:

When it comes to starting a business, a college degree is not always needed. Guidant Financials states that out of 10, only 3 finish high school, 4 have an associate degree, 2 have bachelor’s and master’s degrees and only 1 has a doctoral degree. Education indeed has its own advantages in creating and understanding business models better, but it is not an absolute necessity.

How Does Entrepreneurship Work?

70% of entrepreneurs work more than 40 hours per week and 19% work more than 60 hours each week.
Around ⅓ rd of small businesses offer employment benefits.
A total of 43% of gig workers turned their side gigs into full-time businesses.
The record states that around 45% of American entrepreneurs start their businesses from home.
Social entrepreneurs believe that the different digital collaboration platforms (40%)and remote work flexibility (38%) help work done faster after the covid pandemic. Here are some remote work statistics for better insight.
More than half of social entrepreneurs believe that organizational structure is the most difficult thing to build as it promotes business growth faster.
According to the Guidant 2022 report, only ¼ of the entrepreneurs are not happy with their decision.
As an aftermath of the Covid-19 pandemic, about 83% of entrepreneurs made changes to their existing business models.
51% of Entrepreneurs believe that they pay a lot in Taxes in annual sales.
In the UK and Belgium, it takes about 5 days to start a business, 4 days in the US and 2 days in Canada and Australia, and only 1 day in New Zealand.
To run a successful business one needs proper experience and qualifications. And 82% of entrepreneurs think that they have this quality in them.
It is believed that 23% of small businesses that would open in the next year would operate with a 100% remote workforce.
However, the rest 87% would be purely online businesses or would have a combination of both online and offline store presence.

Entrepreneurship Statistics: Role of Finance

28% of entrepreneurs around the world believe that finance has played a major role in establishing a successful startup. Check out more startup statistics for an inspiring insight into the industry. Studies also show that the United Arab Emirates is the most expensive place to start a business with $7443 and Congo is the most affordable place with $1232.

Texas is the most friendly state for entrepreneurs and New York is the least friendly.
According to Guidant Financial 2021, more than 63.5 % of businesses are presently successful in the US.
Around 1/3rd of small businesses owned by African-Americans are successful.
One of the topmost financial priorities among 36% of small business entrepreneurs is getting funding.
Independent research 2021, entrepreneurs have started their businesses for as low as $10000 in recent years.
Crowdfunding has played an important role and 40% of crowdfunding is raising funds for entrepreneurship.
The global crowdfunding chain is ruled by the US, UK, and Canada.
Most entrepreneurs do not pay themselves any salary at all.
Inflation concerns about 52% of small enterprises.
In 2022, the most important priority of small businesses is to increase their online sales and presence.
According to SBA,2020 small business owners who have incorporated their business have a median income of $51,816, and those not have an income range of $26,084.
During Covid, only 34% of businesses reported profit which is a drastic drop from 55%.
In the next financial year, 65% of businessmen believe that their cash flow would be good, 23% believe that it would remain the same and 12% believe there will be a drop.
Similarly in 2022, 43% of small business owners plan to increase their profit margins.
Financial management is very important as 30% of entrepreneurs face loss and 40% yield profit based on their managerial capabilities.

Entrepreneurship Statistics: Role of Marketing

Success comes through various doors but in today’s era to stay in the business world and perform effectively the use of modern marketing techniques is a must. 35% of entrepreneurs around the world believe that while chalking out an effective marketing strategy, one always plans to use the best CRM tools available in the market. The key marketing and entrepreneurship figures are as follows:

Traditional Marketing Approach:

More than 80% of consumers always pay attention to small business products and service offerings.
33% of entrepreneurs have no faith in marketing strategies whereas 55% of them believe in marketing skills.
A total of 47% of small business owners handle their own business strategies.
Driving sales is the foremost objective of all marketing plans.
2 hours per week are spent by half of the world’s entrepreneurs on sorting out their marketing plans.
47% of entrepreneurs globally trust themselves in handling their marketing activities.

Digital Marketing Approach:

Around 92% of business owners believe that website creation is the most effective digital marketing technique.
29% of entrepreneurs believe that digital marketing doesn’t help with the overall growth of the business.
49% of entrepreneurs of small firms believe that social media management is their primary tool of digital marketing.
Only 61% of entrepreneurs plan their social media campaigns accordingly.
About 64% of companies invest actively in SEO.
Active investment in SMM is seen in 74% of companies.

Entrepreneurship Statistics: Before and After Covid-19

10,000 businesses closed down in 2021 due to the pandemic. (CNBC, 2021)
As of August 2020, 163000 stores were shut and among these 60% had to shut down permanently.
69% of entrepreneurs doubled their marketing strategy to be on the profit side during the pandemic.
With the Global pandemic and lockdown going on, 54% of businesses saw an increase in their website traffic.
4.6 million people found difficulty in getting a job in December 2020.
28% of people believe that the pandemic has made them quicken their plans of starting a new venture.
The present US economy consists of more than half of small business accounts.
72% of prospective entrepreneurs think that the pandemic will not delay the plans of their upcoming ventures.
Only 20% of entrepreneurs plan to reopen their businesses that were shut down due to the global pandemic.
Around 42% of present business owners are very optimistic about running a profit even after the global pandemic.
A total of 34% of small businesses were profitable despite the pandemic.
Temporary health services, computer jobs, and technical and enterprise management industries saw a huge increase in job vacancies once the pandemic was over.
During the pandemic, 60% more usage of mobile payments was recorded.
According to the US BLS 2021, the retail industry(121000), warehouse clubs(59000), nonstore retailers(14000), automobile dealers(13000), health and personal care stores (10000), and the food industry (8000) accounted for the largest job growth after Covid-19.

Entrepreneurship Statistics Around The World in 2021

According to gemconsortium, 20% of the adult population in Canada was involved in planning or starting a business.
48% of the total estimated UK population is either involved in a sole proprietorship, trading business, and ordinary partnership venture.
African Development Bank suggests that country’s 22% of the working-age population is involved in business practices.
India has also seen a percentile rise of 5.3 % in 2020 to 14.4% in 2021 where people between 18-64 are actively running or starting a new business.
In the last year itself, Australia has seen a 7% increase in businesses of which 60% and more are non-employing businesses.
New Zealand’s provisional reports show an increase of 0.5% in business from Feb 20 to Feb 21.
Singapore has noticed a rise in businesses from 273,100 in 2019 to 291,600 in 2021.
In the first half of 2021, European startups have captured 20% of the world’s capital.

Why do Businesses Fail?

According to Guidant Financial and the Bureau of Labor Statistics, more than 19% of businesses fail in the first year, and 5 in 10 businesses fail in the first five years. More than 38% of businesses fail as they are unable to sustain the cash flow whereas 35% fail to create a market need. Poor communication and the incorrect team also result in more than 15% of business failures. Thus, before you start on your entrepreneurship journey, understand the market needs, plan your finances well and create solid teamwork. You can also go through business failure statistics to get a quick insight to avoid previously made mistakes by different entrepreneurs.

How Statistics Can Help You Become A Successful Entrepreneur?

Knowing the different types of entrepreneurship statistics will help you understand the world of Entrepreneurship better and how it works. More and more small businesses are emerging and having a quick understanding of the different entrepreneurship trends after the global pandemic helps you in making a quick start.

Takeaways

Starting a business venture has never been an easy job. It has its own share of failures and rewards. Thus one must be strong-willed, and disciplined and must perform his research before starting out. Entrepreneurs who are successful in creating a business for themselves always turn out to be happier, more confident, have a work-life balance and are also more satisfied. Here is more on job satisfaction statistics. I hope the entrepreneurship statistics mentioned will give you a brief about the various aspects and challenges of the entrepreneurial journey.

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101 Unexpected Entrepreneurship Statistics & Trends For Insightful Analysis