“I knew that if I failed I wouldn’t regret that, but I knew the one thing I might regret is not trying.”
— Jeff Bezos, founder and CEO of Amazon
Those who’ve started a business know that it is not a task for the faint of heart. Entrepreneurs risk their money, time, and more when they set out to create something new, but they are also driven by a passion to bring their particular skill to add value to their communities.
We’re on a mission to honor our small businesses, and so here are 9 statistics about small businesses that you may not already know:
(Scroll down below the content to view the infographic.)
1. Shopping at small businesses gives customers a way to give back to their communities.
53% of people say shopping at small businesses helps them give back to their communities and gives them more purpose in their shopping habits.
2. Small businesses create about 1.5 million jobs per year.
Annually in the United States, small businesses create about 64% of all new jobs and account for about 99.7% of all businesses.
3. The number of small businesses has doubled since 1982.
Technology has been instrumental in the rise of small businesses in the last several decades. Apporximately 50% of small businesses are operated from home.
4. 50% of Millennials and Gen-Zers have side hustles.
The younger generations have the drive and the know-how needed to start their own businesses, whether it’s podcasting, dog-walking, or jewelry-making. These self-owned businesses often start out as side hustles.
5. 73% of small businesses invest in social media marketing.
And with good reason: Social media marketing is an easy and inexpensive way to get your brand out in front of the world and, more importantly, in front of your ideal customer.
6. Customers are willing to pay more to buy from a small business.
According to polls, about 77% of consumers are willing to pay more to buy from small businesses if they receive excellent customer service.
7. The biggest challenge small businesses face is cash flow.
The primary reason small businesses close their doors is because they lack working capital. The other top reasons are inadequate management and ineffective business planning.
8. Small businesses that utilize technology are 3x more likely to create jobs in the next year.
They also, on average, earn two times as much revenue per employee over businesses that do not use their technology to its full capacity.
9. The most common reason small business owners start their own businesses is to be their own boss.
The next top two motivations for small business owners are dissatisfaction with corporate America and the desire to pursue a passion, not just a job.