Entrepreneurship is on the rise, and it’s not hard to see why — being your own boss can come with many perks. Even despite the economic downturn due to COVID-19, many individuals are taking 2021 as an opportunity to start new business ventures and meet the new, post-pandemic demands of consumers. In fact, Americans are starting businesses at the fastest rate in over a decade.
If you’re thinking about monetizing your passions, and creating a long-lasting business, you’ve come to the right place. Read on or skip to our infographic as we reveal 50 entrepreneur statistics that will inspire you to take your expertise and creativity to the next level this year.
Small Business Statistics
1. 24 million Americans want to become self-employed by 2021. 1
2. 74% of small and medium business owners are willing to take big risks to ensure success.2
3. Most small businesses have fewer than 100 employees.3
4. 16 million Americans are full-time self-employed.4
5. 78% of small business owners report career satisfaction.1
6. 9% of self-employed individuals leverage the gig economy full-time by relying on booking platforms like Task Rabbit and Upwork to find work or clients.1
7. 20% of small businesses are solo enterprises, fully run by only a single business owner.5
8. Handymen and Contractor insurance was the most purchased small business policy in 2020.6
9. Consultants and Freelancers insurance was the second most popular small business policy sold in 2020.6
10. 90% of Americans would give up a key work benefit to be their own boss.7
11. 23% of small businesses starting in the next 12 months will have 100% remote workforces.8
12. More than 1 in 10 prospective business owners do not intend to write a business plan, despite there being 69% of small business owners who recommend having one.8
13. Of business owners who have failed, 65% blamed financial issues (cash flow visibility, access to capital).9
14. 83% of business owners choose to be self-employed professionals.1
15. Conversely, 17% say it wasn’t their choice to work for themselves, but they were forced into it due to their financial situation. 1
16. 29% of entrepreneurs started a business because they were ready to be their own boss.5
17. Over half of adults across 35 economies want to start a business to make money because jobs are scarce.10
Where Do the Most Entrepreneurs Live?
18. California had the highest number of entrepreneurs in 2020.7
19. In 2020, the top five states for entrepreneurship were: California, Florida, Texas, Georgia, and Colorado.7
20. In 2020, North Dakota had the lowest number of new entrepreneurs.7
Demographics of entrepreneurs
21. The gender profile of entrepreneurs is 66% male and 31% female.5
22. Most U.S. business owners are white, making this racial group hold the majority of stake in all businesses (80%).11
23. As of 2019, only 56% of entrepreneurs held a college degree.1
24. Asian entrepreneurs run 10% of all U.S. businesses, making them the second largest racial or ethnic group. 11
25. 20% of all U.S. businesses are owned by people of color.12
Women in Business Statistics
26. Health, beauty and fitness services is the most popular industry for women-led small businesses.5
27. Women-owned businesses have skyrocketed from a mere 4.6% in 1972 to 42% in 2019. 2
28. Women of color own half of all female-owned businesses in the U.S. and generate 23% of total revenue from female-owned businesses.2
29. The number of women-owned businesses grew by 3.9% annually between 2014 and 2019.2
30. As of 2019, Hispanic/Latina women owned 18% of all women-owned businesses.13
31. Asian American women own 9% of all women owned businesses.2
32. The top five small business industries for women include:
- Health, beauty, and fitness services
- Food and restaurant
- Retail
- Business services
- Medical or therapy5
Entrepreneur Strategy Statistics
33. 55% of entrepreneurs say it’s important to keep their weekends free for loved ones.9
34. 1 in 5 entrepreneurs own or manage a business with family members.10
35. 58% admit that spending time with family in the evenings is crucial to their ability to be an effective entrepreneur. 9
36. One-third of entrepreneurs have turned to a support group or mentor for advice on their business.9
37. 49% invest funds in marketing campaigns (social media, advertising, PR) to promote their business.9
38. 30% of business owners are serial entrepreneurs, who have run more than one business.1
39. 84% of individuals become entrepreneurs by taking their skillset or expertise independent.1
Entrepreneur Earnings
40. A college degree makes no difference on small business revenue.1
41. The average small business earnings in 2019 were $143,000.1
42. 63% of business owners say their quality of life is more important than the money they make.1
43. 61% of business owners say that they are satisfied with their career accomplishments.1
Entrepreneurship During COVID-19
44. 68% of owners are very concerned about the impact of COVID-19 on business.13
45. 16% of startups saw their revenue drop by more than 80% since the beginning of the COVID-19 crisis.14
46. One in eight startups have seen their revenue increase since the beginning of COVID-19, mainly in B2C companies.14
47. Only 63% of small businesses were profitable in 2020, compared to 78% who were profitable the year before the pandemic.5
48. 78% of business owners expect to survive the pandemic.5
49. 61% of businesses reported receiving either PPP or EIDL (or both) relief.5
50. 49% of small business owners said they were either somewhat or very confident in the post-pandemic future of small businesses.5
If the COVID-19 pandemic left you with a great skill or business idea, becoming an entrepreneur this year might just be the right career path for you in 2021. That said, if the last year has taught us anything, it’s that we must always be prepared for the unexpected. Be sure to give yourself peace of mind and protection to help you clear any unexpected business hurdles that may come your way.
Sources:
(1) FreshBooks. Third Annual Self-Employment in America Report.
(2) American Express. SME Pulse 2019.
(3) U.S. Small Business Administration. United States Small Business Economic Profile.
(4) Pew Research Center. 10 Facts About American Workers.
(5) Guidant Financial. 2021 Small Business Trends.
(6) Thimble. Proprietary data on small business insurance policies purchased (2020).
(7) Thimble. [SURVEY] Over 90% of Americans would give up a key benefit to be their own boss.
(8) Intuit. What’s Next for the Small Business Economy.
(9) Xero. Make or Break Report.
(10) Global Entrepreneurship Monitor. 2018/2019 Global Report.
(12) Brookings. Businesses owned by women and minorities have grown. Will COVID-19 undo that?
(13) NFIB. NFIB Study: COVID-19 Impact on Small Business: Part 2.
