Many people try to build their dreams into businesses. However, only a few of them can achieve their dreams. With your own business, you have full control over your time and goals. Starting your business can sound overwhelming, but the process will become easier if you know a few business statistics.
It doesn’t matter whether it is an online business or a brick-and-mortar business. If you have a general idea of how small businesses perform, it will help you better manage the opportunities and the risks affiliated with it.
Before you start with your business, it is better to have an idea of how the business is thriving in the market. How can you do that? It is simple. You just have to go through some important business statistics. These business statistics will give an insight into how well the market is performing.
Best Business Statistics For Your Business
Whether you already have your own business or planning to open this year, it is important that you have the relevant statistics to gauge the potential of the business. These statistics will help you understand the impact of the business and how it can bring in profits for your business.
What are these statistics? Let’s find out.
1. How Many Businesses Are There Related To Your Industry?
Before you can start with your business, it is important that you know how many competitors you have in this industry. There are more than 30 million small businesses in the USA for your kind information, which account for 99.99% of total business in the USA.
Here small businesses mean companies have 500 or fewer employees. That means many highly valued businesses of the USA fall under the small business categories.
The definition of a small business varies from country to country. For instance, in Europe, a company with 500 or fewer employees is considered a small business, and in Australia, 15 or less.
2. How Many Jobs Are Created By These Businesses?
With so many small businesses in the USA, there is no denying that small businesses create the majority of the jobs opportunity. According to small business administration, the business statistics show that these small businesses create job more than 1.5 million opportunities every year, accounting for almost 64% of total job opportunities.
The past year’s business statistics show that small business businesses have been a prominent figure in boosting America’s economy. It is the small business that caters to most job opportunities, financial growth, and uniques services. So, whether or not they become large-scale organizations, they still contribute to the growth.
3. What Are The Most Common Reasons For Opening A Business?
There might be a hundred reasons why most people think of opening their own business. Amongst the most common motivations, according to business statistics, 55% of the respondents address the fact that they want to be their own boss and want to work for them and not for others.
The next most popular reason to open a business is that most people want to pursue their passion, with 39% of the respondents choosing this option. Other common reasons include lack of financial freedom, dissatisfaction with 9 to 5 jobs, and retirement plans.
4. How Impactful COVID 19 Was On Businesses?
It is one of the business statistics that every aspiring business owner should look into it. After seeing how impactful pandemic has been in the small business, you will be able to gauze the small businesses’ risks.
According to the latest small business statistics, more than one-third of small businesses are not operational. Over 70% of the small businesses shut their gates for the customers when the USA becomes the pandemic’s epicenter. Out of that 70% of the small businesses, 60% of the businesses were closed due to government and health authority orders.
5. How New Generation Perceive Entrepreneurship?
The new generation is technological literate, and hence, they know how to use technology for their side hustles. According to the business statistics, millennials are 188% more likely to aim to create a side business for themselves.
In fact, millennials are 48% more likely to start a business compared to the baby boomers because they have an idea that will serve the customers to make their life better.
Thanks to the ease, the process has become smooth for the aspiring entrepreneurs to become their own boss.
6. What Percentage Business Fails?
One of the biggest fears every entrepreneur has is the risk of failing the business. And the fear is not unrealistic. As a matter of fact, more than 50% of the small business fails in recovery in the first year. And more than 95% of the businesses in the forest five years of their journey.
Now, this business statistics shouldn’t discourage you from opening a business; rather, it should motivate you to open a business and avoid the mistakes which lead to failure of the busyness in the first year.
Of course, you won’t be able to completely eliminate the risk, but it will help you better understand the current scenarios and help you overcome them.
7. Why Does A Business Fail?
The primary reason why a business fails is that there is a lack of market demand for your products and services. According to small business statistics, 42% of small businesses fail because they launch a product or service that lacks demand in the market.
Hence, it is clear that you should be sure about opening your business to ensure that you are offering what your customers need.
To reflect the reason why businesses fail, it is safe to say that it is a combination of customer-centric resins and a lack of resources.
Conclusion: Business Statistics
Without a doubt, 2021 is going to be a significant year for businesses. With the competition rising, these business statistics will help make better business decisions. And even if you are likely to face challenges, these statistics will help you devise a countermeasures plan.