People love to start their own businesses, and many succeeded in this process. Small businesses have been the backbone of many countries’ economies.
Almost 90% of the US business population is occupied by small and medium level businesses [Source: Salesforce]. But yet their stories are never heard.
Hence in this article, we’re going to discuss the interesting small business statistics of 2021.
1. 31.7 Million small businesses are there in the US [Oberlo]
For many entrepreneurs, the USA is the better place to start their business. As a result, more than 31.7 Million small businesses are created in the US alone.
2. Remote working is here to stay
The impact of COVID19 made people work from home. And many small businesses have adapted themselves to this new normal.
3. Cashless payments are going to explode in 2021 [dataart.com]
Millennials are the primary customers of small businesses, and they hate making payments via cash, as digital payments made their lives easier.
4. Small businesses spend around 16$ per user for CRM software
Small businesses love using CRMs to manage their business processes. Some popular CRM softwares for small businesses are Hubspot, Salesforce, Zoho, etc.
5. 96% of small businesses use social media as their primary marketing strategy [fundera]
Based on the recent small business statistics report, almost 3.6 billion people use social media in their day to day life, and it is by far the best platform to market your business in 2021.
6. 64% of small businesses have their own website
Due to the increase in internet usage, many business owners moved their business online. We highly recommend the other 36% of businesses to adapt to this change as conducting business in this digital era without a website is inevitable.
7. 69% of small businesses start at home [spendmenot]
Most US-based entrepreneurs start their business at home as a home-based business before moving out.
8. 60% of small businesses use cloud technology by 2022 [Gartner]
Cloud computing made managing small business processes easier as they can access the data from anywhere, at any time.
9. 83% of small business owners believe that their business perform well in 2021 [GGV Capital]
2020 hit hard. But most small business owners say that their business will perform well in 2021 based on the sentiment survey conducted by GGV capital.
10. 75% of small businesses kept their employees [Smallbiztrends]
Of all the statistics we mentioned here, this one is the most heartwarming one. It is a great gesture by the SMBs to keep their employees even in this tough time.
11. Veterans of armed forces own around 2.5 million businesses in the USA [Digital.com]
Finding a job after retiring from the armed forces is a tedious process, and many veterans have a passion for entrepreneurship. These may be the motivational factors for veterans to start their own business.
12. The USA has almost 12.3 million women-owned businesses [Fundera]
Women entrepreneurship is on the rise not only in the USA but across the globe. Women-owned businesses employ around 9.2 million people in the USA [Bizjournals].
If you’re a female entrepreneur, don’t lose your hope. You may face struggles, but there’s a bright future ahead of you. This is one of the reasons why we made this small business statistics report.
13. 82% of businesses shut down their operations due to cash flow problems. [US Bank study]
Financial difficulty is the major crisis that every small business faces in its initial stage. You have to be strategic with your cash flow by calculating your income and expenses to sustain.
14. Online tutoring, e-commerce, healthcare are the best industries for a startup
There’re many industry options that you can go through before starting your business. The above mentioned are some of the best sectors that you consider in 2021.
To start an online tutoring or healthcare business, you need to create a mobile app that allows your customers to book the services online.
15. 26% of business owners say they started their business because they can be their own boss. [99firms]
Many people wish to be their own boss, even in their professional life. It became the motivating factor for many entrepreneurs out there.
We made it to the end of our small business statistics report
We’ve seen some amazing small business statistics right from positive to negative. Don’t be disappointed by the negative statistics. Take a step back and think about the reasons behind the failures. It’ll help you avoid them while you start your own business.
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