50 small business statistics creators need to know for 2020 [Infographic]
If you’re a small business owner or thinking about starting your own, get this infographic of the top 50 small business statistics to help guide your way.
You know that feeling of being lost without directions on the freeway, where everything is coming at you way too fast, and every exit inspires a deep sense of dread in your gut?
The same can go for transforming your own online business idea into a full-fledged business without any clear guidance.
The road is unfamiliar terrain. Everyone else seems to be racing past you toward their goals. You know that you want to go forward, but you have no idea which direction to go forward in.
That’s where stats can really help out.
Like your own personal business GPS, the numbers behind every great small business gain -- and loss -- can tell you where to turn, when to speed up, and where to stop in your tracks.
Today, we’ll look at those numbers to help you navigate the unfamiliar ins-and-outs of being an entrepreneur with 50 small business stats that all creators need to see.
For your convenience, they’re categorized into four sections: starting a small business, demographics, marketing, and challenges.
First up, let’s get a look at the lay of the land in our convenient infographic. If you’re more of a reader than a looker, feel free to jump down to the bottom of this page to check out each stat for yourself.
The small business stats you need to know in 2020 infographic
Want to check out a stat more in-depth or peep our sources? Then read on below for the details.
Starting a small business
1. The most common reason why small business owners start their businesses is that they’re ready to be their own boss, according to 55% of them. ( Guidant Financial )
2. The second biggest motivation for starting their own business is passion, with 39% of small business owners wanting to pursue their passion and build something from scratch. ( Guidant Financial )
3. Finally, 25% of small business owners start their own business because they’re dissatisfied with their corporate gigs. ( Guidant Financial )
4. 64% of small business owners begin with only less than $10,000 in capital. ( Intuit )
5. 58% of small businesses get started with less than $25,000. ( Kabbage )
6. One-third of small businesses get started with less than $5,000. ( Kabbage )
7. Approximately 25% of small businesses start with no financing whatsoever. ( LendEDU )
8. A whopping 75% of small business owners rely on their personal savings to start their businesses. ( Intuit )
Small business owners demographics
9. 50% of all small businesses are operated from home. ( SBA )
10. 44% of small business owners are gen-Xers aged 39 to 54 years old. ( Guidant Financial )
11. 41% of small business owners are baby boomers between 55 and 73 years old. ( Guidant Financial )
12. 12% of small business owners are millennials aged 23 to 38 years old. ( Guidant Financial )
13. Only 2% of small business owners are part of the silent generation aged 74 years or older. ( Guidant Financial )
14. 73% of small business owners are men. ( Guidant Financial )
15. 27% of small business owners are women. ( Guidant Financial )
16. Most small business founders (31%) have an associates’ degree. ( Guidant Financial )
17. 30% of small business founders have a high school education. ( Guidant Financial )
18. 18% of small business founders have a master’s degree. ( Guidant Financial )
19. 17% of small business founders have a bachelor’s degree. ( Guidant Financial )
20. Only 4% of small business founders have a doctorate degree. ( Guidant Financial )
21. The top characteristic for running a successful small business is self-discipline (38%). ( Salesforce )
22. Two other top characteristics for running a successful small business are people and communication skills (33%) and personal passion and drive (33%). ( Salesforce )
Small business marketing
23. 92% of small business owners think that having a website contributes effectively to their digital marketing strategy. ( Statista )
24. 89% of small business owners think that SEO helps with their digital marketing strategy. ( Statista )
25. 63% of marketers are investing in upgrading their website in 2020. ( HubSpot )
26. 64% of marketers actively invest time in SEO. ( HubSpot )
27. When it comes to digital marketing priorities, 54% of small businesses prioritize their website. ( Clutch )
28. 51% of digital marketers prioritize social media. ( Clutch )
29. The most popular digital marketing channels for small business are a website and social media. 62% of small business owners market through their website. ( Clutch )
30. 61% of small business owners market through social media. ( Clutch )
31. Businesses are creating content for primarily Facebook, followed by their company website. ( HubSpot ).
32. 65% of small businesses consider social media advertising effective. ( Statista )
33. Businesses most commonly publish posts on social media at a frequency of 3-4 times per week. ( HubSpot )
34. 74% of marketers around the world continue to invest in social media, with Facebook being the dominant channel followed by Instagram and then Twitter. ( HubSpot )
35. 47% of small businesses spend less than $10,000 on digital marketing. ( Clutch )
36. 43% of small businesses use an in-house team for their digital marketing. ( Clutch )
37. 39% of small businesses use marketing software. ( Clutch )
38. A staggering 80% of small businesses do not invest in content marketing, which may mean a missed marketing opportunity. ( Clutch )
Small business challenges
39. 1 in 12 small businesses closes each year. ( US Census Bureau )
40. The top three reasons are due to low sales and cash flow, retiring, and selling the business. ( US Census Bureau )
41. 86.3% of small business owners admit to earning an income that’s shy of $100,000 annually. ( Fundera )
42. 30.1% so small business owners don’t take a salary at all. ( Fundera )
43. 42% of failed small businesses offer products or services that don’t bring anything new or useful to the market. In other words, there’s no market need. ( CBSInsights )
44. About 50% of small businesses survive for five years or longer. ( SBA )
45. About one-third of small businesses survive for 10 years or longer. ( SBA )
46. 56% of small businesses find it somewhat difficult or very difficult to find the right talent for their business. ( Indeed )
47. 52% of small business owners claim it’s harder to find qualified individuals to hire now compared to a year ago. ( SurveyMonkey )
48. 35% of small business owners say it’s harder to find employees now than five years ago. ( Indeed )
49. 24% of small business owners think it’s harder to find qualified applicants than it was ten years ago. ( Indeed )
50. 1 out of 3 small businesses report spending more than 40 hours per year on federal taxes. ( NSBA )
Use these stats to gauge your next move
Running your own small business doesn’t have to be like finding your way through a complex maze.
You can use these small business statistics to benchmark the highs and lows of your entrepreneurial journey.
Use stats about starting a small business to gather info on what’s needed for kicking off your own endeavor.
Use small business owner demographics to better understand your chances of succeeding.
Use small business marketing stats to find out what’s worked for others before you and to identify your opportunities for growth.
Finally, use stats about small business challenges to determine where to prioritize your efforts when it comes to pitfalls and hurdles.
At the very least, these stats will give you some insight into what to expect and where to put your focus. May they help you find your way.
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