The landscape of small business ownership is rapidly evolving, with technology and adaptability being critical to success. Small Business Ownership Statistics shed light on the resilience and diversity of this sector, revealing that the United States boasts an impressive 33.2 million small businesses, constituting 99.9% of all U.S. businesses.
Generational distribution is varied, with 47.2% of owners belonging to Gen X, 39.6% to the baby boomer generation, and 12.9% being millennials.
Karen Kerrigan, President and CEO of the Small Business & Entrepreneurship Council, emphasizes the importance of embracing change and leveraging technology in the wake of the pandemic to ensure long-term success.
Small Business Ownership Statistics: Key Data
- The United States is home to an estimated 33.2 million small businesses.
- A striking 99.9% of all U.S. businesses fall into the small business category.
- 47.2% of small business owners are Gen X, 39.6% are baby boomers, and 12.9% are millennials.
- There are approximately 13.94 million businesses owned by women in 2023.
- A significant 85% of small businesses depend on word-of-mouth referrals to acquire new clients.
- Roughly 33% of small businesses achieve a decade-long lifespan.
- A notable 69% of small business owners initially launch their ventures from home.
- Optimism prevails among 62% of small business owners regarding their businesses’ future prospects.
- Confidence in managing their enterprises is expressed by 64% of small business owners.
- A satisfying work-life balance is reported by 82% of small business proprietors.
- 19% of small business owners work a whopping 60 hours per week.
Sources: SBA, Fundera, Smallbiz Genius, Fundera
What Percentage Of Businesses Are White Owned?
According to the most recent data from the Census Bureau, 78.29% percent of businesses in America are owned by white people. This number has remained relatively steady over the past few years, even as the number of minority-owned businesses has increased. There are a few factors that contribute to this high percentage of white-owned businesses.
One reason is that white people have more access to capital than minorities. This is due to a variety of factors, including historical discrimination and redlining practices that have made it difficult for minorities to get loans and investment capital. As a result, minorities have had to rely on personal savings and loans from friends and family members to start their businesses.
Another reason for the high percentage of white-owned businesses is that minority-owned businesses tend to be smaller than white-owned businesses. This is due in part to the fact that minorities often lack the same level of experience as white business owners. They may also struggle to gain access to the same resources, such as networks and mentors, that might assist them in growing their firms.
A range of factors, including historical prejudice and a lack of access to financing, contribute to America’s high ratio of white-owned firms.
However, the number of minority-owned businesses is increasing, thanks in part to programs designed to help them grow and thrive.
With ongoing funding, we can expect much greater advancement in this area in the next years.