Did you know that more than 70% of small businesses are owned by a single person? Many of these companies are thriving in the face of difficult economic conditions, such as the downturn in the housing market. More than half of the nation’s economic activity is due to small businesses. Despite these facts, entrepreneurship is still a surprisingly popular pursuit among Americans. In fact, despite the many barriers to starting a business, more people than ever are beginning their own ventures.
Small businesses account for 99.9% of all companies in the country and 97 percent of all exporters. According to the National Small Business Association, nearly half of small businesses anticipate hiring new workers in the next six months. Furthermore, about 543,000 new businesses open every month, generating 6.5 million new jobs. With the current economic climate, this means that even a fraction of these companies will provide massive opportunities. So, if you want to get involved in entrepreneurship, consider these facts.
According to the National Small Business Administration, small businesses create over 6.5 trillion dollars in revenue and employ more than 8 million people. In addition, the average SBA-backed loan was $107,000 last year. A third of all U.S. small businesses fail. One in four of these businesses fails due to poor marketing. A quarter of small businesses use email to communicate with their customers. This means that these companies are more likely to succeed if they’re well-organized and equipped with the right resources.
While most small businesses are small, they have a great impact on the economy and nation’s progress. In fact, according to SCORE, 50 percent of small businesses will hire new employees in 2016 and more than 6.5 million will start within the same year. The average life span of a small business is eight and a half years. These statistics are encouraging for the growth of all types of businesses. And remember that the smaller the business, the greater its impact on society.
Did you know that 47% of all small businesses will hire new employees this year? The majority of them will make their first million-dollars in 2016. Interestingly, this growth has been attributed to the growth of social media, which will reach $110 billion in 2021. In addition, it is estimated that 43% of small businesses will hire more employees in the future. They also will be able to grow faster if they have a strong customer base and are responsive to social media and other online marketing strategies.
Small businesses are more likely to be self-employed and have higher rates of employee turnover than larger companies. This makes them more likely to focus on word-of-mouth marketing and customer referrals. Another important aspect of a small business is that it doesn’t have the deep pockets of their larger competitors. Instead, they must rely on word-of-mouth and emails to communicate with customers. This can be a huge benefit for a small business.
