Looking to learn the ins and outs of small businesses? One of the best ways to familiarize yourself with these ventures is by taking a look at the numbers behind them. Here are 15 small business statistics, from success rates to finances and marketing, that will help you form your own business plan or shore up your company’s deficiencies.
Growth and Survival
1. The U.S. Bureau of Labor Statistics estimates that 50% of small businesses will survive 5 years or more, while approximately one-third will survive 10 years or more.
2. According to the Statistic Brain Research Institute, startups in the following industries are the most likely to last 4 years or more: finance insurance, real estate, education, health, and agriculture.
3. The same institute cites that 46% of startup failures are caused by incompetence, and 30% fail due to inexperience.
4. According to a report conducted by the NSBA, the greatest challenge to small business growth and survival is economic uncertainty, followed closely by lower consumer spending and regulatory burdens.
5. Small businesses are responsible for approximately 60% of net new jobs. (SBA, 2013)
6. The average SBA loan is approximately $371,000 (SBA, 2013).
7. A Bluevine study reported that around 75% of small businesses used their own personal finances as primary startup funding.
8. According to Small Biz Trends, big banks only approve around 18.8% of small business loans, while smaller banks have a much higher approval rate of around 51.6%.
9. The average amount of initial capital needed to get a small business running is around $10,000 (SBA, 2014).
10. A U.S. Bank study indicated that up to 82% of small businesses fail due to cash flow problems.
Click here to read our article on 8 Ways to Solve Cash Flow Problems.
11. A report conducted by LeadPages and Infusionsoft revealed that of the businesses that planned to use digital marketing in 2016, 51% had the primary goal of driving sales.
12. The same study showed that the biggest digital marketing challenge for small businesses is turning leads into customers.
13. Fewer than 25% of small businesses have mobile apps, but this number is expected to leap up to 50% by 2017 (Clutch).
14. According to Social Media Examiner’s Social Media Marketing Industry Report, 96% of small businesses utilize social media marketing, and 92% say that it is important for their business.
Here are a few articles about how to best utilize social media:
15. The Local Merchant Report 2015 found that more small businesses utilize traditional advertising routes such as newspapers (32%) than they do mobile marketing.
We have several articles to assist with offline marketing, including:
These small business statistics give a good look into what makes small businesses tick – and potential problems they may face. Be sure to take these statistics into account when forming your business plan so that you can ensure that your company survives and thrives.