Starting your own business is not so complicated and overwhelming as it might seem at first
Many people try to break free from workplace rules, politics, and all the internal chaos that can limit their growth.
They dream about starting their own businesses based on their own ideas and dreams.
It’s no wonder that the same people desire to have full control over their time and goals.
Starting your own business can sound overwhelming and complicated at first, but if you break down the process of how to start a business into steps, you’ll just need to take the first big leap of courage that will lead you along your entrepreneurial journey.
And whether it’s an ecommerce store or a brick-and-mortar business, knowing what’s happening in the world of small businesses can help you better manage your risks and opportunities.
If you are planning to start your own business this year, you may find these statistics helpful.
The latest stats show that there are 33.2 million small businesses in the US, which account for 99.9 percent of all US businesses (SBA, 2022).
The Small Business Administration (SBA) defines a small business as a firm that has fewer than 500 employees. This means that many highly valued startups in the US fit within this definition of small businesses.
Small Business Employees in the US
Breaking these small business stats down further, we see that of the 33.2 million small businesses in the US, there are 27 million with no employees, 5.4 million with fewer than 20 employees, and around 650,000 that have between 20 and 499 employees.
Although the majority of small businesses hire fewer than 100 employees, they have created millions of new jobs over the past few years.
According to the Small Business Administration, US small companies created 8.7 million new jobs between March 2020 and March 2021 (SBA, 2022).
In fact, there are currently 61.7 million small business employees in the US, which make up approximately half (46.4 percent) of the US workforce.
Past years’ statistics show us that small businesses have always been an integral part of the US’s economy and growth. They offer 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.
States with the Most Number of Small Businesses in the US
With San Francisco, Los Angeles, and San Jose all featuring in the top ten cities in the world that receive the most investment from venture capitalists, it should come as no surprise that California has the highest number of small businesses.
With 4.2 million small businesses, the Golden State is home to 35.5 percent more small businesses than Texas, the state with the second-highest number of small businesses in the US.
Here are the states with the most number of small businesses in the US (as of 2022):
California: 4.2 million
Texas: 3.1 million
Florida: 3 million
New York: 2.3 million
Illinois and Georgia: 1.2 million
California’s small business employees make up 47.9 percent of the state’s total employees, which is higher than the national average. Over the past year, businesses in California added a total of 1.6 million jobs. Of these, 1.1 million (around two-thirds) were from small businesses.
Younger Generations Are More Likely to Create a Side Business
Statistics show us that the new generation of entrepreneurs is more likely to side-hustle. In fact, Millennials and Gen Zers are 188 percent more likely to have the aim of creating a side business, compared to Baby Boomers or traditionalists (Salesforce, 2019).
In comparison to Baby Boomers, Millennials and Gen Zers are also 48 percent more likely to say that they started a business because they had an idea that they were passionate to bring to the marketplace. And thanks to the ease with which you can start your own business, the process has become much more comfortable for newer generations who are looking to become their own boss. Because of the rise of online marketplaces, it’s become easier to run a business from the comfort of your own home.
By Gilbert Castro | ENC News