50 small business stats [2025 list]

As we navigate through 2024, staying informed about the latest trends and data is more crucial than ever for small business owners.

This collection of 50 small business statistics offers a comprehensive overview of the current market. This includes providing valuable insights across several key areas, including how many small businesses are operating in the U.S., the increasing trend of individuals starting their own businesses, and their impact on the economy.

If you’re a small business owner, own some private sector businesses or just want a better understanding, knowing these statistics can help you optimize strategies. Make informed decisions and stay competitive in an ever-evolving marketplace.

From the changing demographics of business ownership to the latest trends in digital transformation, from financial challenges to innovative marketing approaches, and from shifting consumer preferences to new business models, these insights reveal where small businesses are thriving and where they may need to adapt.

By digging deeper into these statistics, you can better anticipate changes, capitalize on emerging opportunities and position your businesses for long-term success.

Read on to discover how small businesses are shaping their futures in 2024 and beyond, and gain the knowledge you need to steer your business towards success.

Overview of Small Businesses

Small businesses are the backbone of the economy, and their statistics are a testament to their importance. Before we get into the list of 50 stats, here are some general statistics - offering an overview of small businesses.

• There are approximately 33.2 million small businesses in the United States, accounting for 99.9% of all businesses. (Source: Forbes)
• Small businesses employ 61.7 million Americansne -nearly half of the private sector workforce. (Source: Small Business Statistics)
• The average annual revenue of a small business is around $44,000, with companies with one to four employees making around $387,000 per year. (Source: Fora Financial)
• Small businesses have created 17.3 million net jobs in the past 26 years, with 63% of new jobs coming from small businesses. (Source: Office of Advocacy)

Small business landscape and demographics

The small business sector continues to be a vital part of the U.S. economy, with diverse ownership and a significant impact on employment. Women and minority-owned businesses are making substantial contributions, while generational shifts in ownership are becoming apparent.

1. Number of small businesses: There are around 33.2 million small businesses in the United States, which equates to 99.9% of all businesses in the country. (Source: US Chamber of Commerce)
2. Women-owned businesses: 43.2% of small businesses are women-owned. (Source: National Association of Women Business Owners)
3. Small business employee numbers: Small businesses employ 61.7 million Americans, equating to 46.4% of private sector employees. (Source: US Small Business Administration Office of Advocacy)
4. Micro businesses: Just under half (49%) of small businesses in the United States have only 1–4 employees, classifying them as micro businesses. Another quarter has 5–19 employees. (Source: Pew Research Center)
5. Small business industries: In the USA, 4.53 million small businesses are in the professional, scientific and technical services industry, making up 13.62% of all small businesses. It’s the only industry with more than 4 million small businesses. The construction industry has the next highest number of small businesses. (Source: US Small Business Administration Office of Advocacy)
6. Small business owner demographics: Gen X (43%) and Boomers (37%) make up the vast majority of small business owners, with Millennials accounting for 16%. (Source: Guidant 2024 Small Business Trends)
7. Minority-owned businesses: 21% of U.S. businesses are minority-owned. This shows a significant portion of the small business landscape is represented by minority entrepreneurs, indicating a diverse range of perspectives and contributions to the economy. (Source: US Census Bureau)
8. New business applications: The number of new business applications in the United States reached 5.1 million in 2023, a 2.5% increase from 2022. This trend suggests a continued entrepreneurial spirit and economic optimism despite ongoing challenges. (Source: U.S. Census Bureau Business Dynamics Statistics 2023)
9. Staying afloat for the long haul is hard: About 20% of new businesses close within one year. Data from the Bureau of Labor Statistics shows that of all businesses that opened in March 2013, only 34.7% were still operational in 2023. (Source: US Bureau of Labor Statistics)

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Financial health and economic outlook

Small businesses are facing financial challenges, particularly due to inflation, but many remain optimistic about future growth. There's a trend towards self-financing and maintaining healthy cash reserves.

1. Inflation is still a major concern for small businesses: 74% of small business owners report that their costs have increased over the previous year. (Source: National Association of Women Business Owners)
2. Quality of labor: When answering a survey on small businesses in the United States in July 2024, about 19% of the respondents stated that the most important problem for small businesses was the quality of labor. (Source: Statista Research Department)
3. Cost to launch a small business: Only 4% of small business owners managed to start their new venture with less than $50,000, with 27% keeping their start-up costs between $50,000 and $175,000 in the next tier up. (Source: Guidant 2024 Small Business Trends)
4. Financial health across the spectrum: 96% of small-business owners have business bank accounts, with over half (55%) of small businesses saying they have more than $50,000 in one or more business accounts and 14% reporting they have less than $10,000. (Source: NerdWallet small business survey)
5. Revenue growth expected: Most U.S. business owners anticipate revenue growth over the next 12 months, with 87% of mid-sized business owners and 65% of small business owners expecting their revenue to increase over the next year. (Source: Bank of America Business Owner Report)
6. Profitability among new businesses: 65% of fledgling businesses (those less than three years old) are turning a profit as of 2024. This statistic suggests that despite challenges, many new businesses are finding ways to achieve profitability relatively quickly. (Source: Guidant Financial, 2024)
7. Economic optimism: 77% of small business owners believe they can survive current economic challenges, with many expressing optimism for growth in 2024. This resilience demonstrates the adaptability and determination of small business owners in the face of adversity. (Source: Guidant Financial, 2024)
8. Business expansion plans: 50% of small businesses achieved their goals in 2023 and plan to expand in 2024. This indicates a positive outlook and growth mindset among many small business owners. (Source: SBA/American Express, 2024)
9. Loan avoidance: 68% of small businesses prefer to avoid loans, often relying on personal finances or reserves instead. This trend suggests a cautious approach to financial management and a preference for self-reliance among small business owners. (Source: Fit Small Business, 2024)
10. Rising credit card balances: Small businesses are becoming more reliant on credit cards to finance their operations, with small business credit card balances up 18% since 2019. (Source: Bank of America Small Business Checkpoint)

Technology adoption and digital transformation

Small businesses are increasingly embracing digital technologies, from e-commerce and cloud services to AI and mobile apps. However, this digital shift also brings new challenges, particularly in cybersecurity.

1. Increase in remote work: Fully remote teams have increased sharply, from 2.3% pre-COVID to 20% in the post-COVID world. (Source: Upwork Future of Remote Work Report)
2. 73% of small businesses have a website: This statistic underscores the importance of a digital presence for small businesses, especially as online shopping and digital engagement continue to grow. (Source: Zippia.com)
3. Staggering rise in AI numbers: The market for artificial intelligence grew beyond $184 billion in 2024, a significant uplift of nearly $50 billion compared to 2023. This growth surge in AI is expected to continue with the market set to surpass $826 in 2030. (Source: Statista)
4. E-commerce adoption: 36% of small businesses now sell products online, up from 27% in 2020. (Source: Visa Back to Business Study)
5. Cybersecurity concerns: 43% of cyberattacks target small businesses, yet only 14% are prepared to defend themselves. (Source: Accenture Cybersecurity Report)
6. Mobile payment adoption: 67% of small businesses now accept mobile payments, a 15% increase from 2023. (Source: Square Payment Trends Report)
7. Chatbot implementation: 53% of small businesses now use chatbots for customer service, a 20% increase from 2023. This rapid adoption reflects the growing importance of automated customer service solutions in enhancing efficiency and customer satisfaction. (Source: Salesloft Conversational AI Marketing Trends Report)
8. Cloud technology adoption: 94% of small businesses now use at least one cloud-based service, up from 88% in 2023. (Source: Flexera State of the Cloud Report)
9. Artificial Intelligence adoption: 37% of small businesses are using AI tools for various business functions, a 12% increase from 2023. (Source: IBM Global AI Adoption Index)
10. Mobile app development: 41% of small businesses have developed a mobile app or plan to do so in 2024. (Source: Clutch Small Business Mobile App Survey)
11. Cybersecurity insurance: 61% of small businesses now have cybersecurity insurance, up from 52% in 2023. (Source: Hiscox Cyber Readiness Report)
12. Cryptocurrency acceptance: 18% of small businesses now accept cryptocurrency as a form of payment. (Source: HSB Cryptocurrency Adoption Survey)
13. Virtual reality training: 26% of small businesses in the manufacturing sector use virtual reality for employee training. (Source: PwC VR Workforce Survey)
14. Generational differences in views on AI: Over the next two years, more young small business owners (78% of under 35s) believe AI will have a positive impact on their business than older small business owners (41% of over 65s). (Source: Bipartisanpolicy.org)

Marketing and customer engagement

Small businesses are diversifying their marketing strategies, with a focus on digital channels, personalization and influencer partnerships.

There’s also a growing emphasis on customer loyalty and engagement through various programs and platforms. Leveraging online and digital channels enables businesses to capitalize on technological advancements, such as AI, for improving automation and customer experiences.

1. Small business marketing: 77% of small business owners say their marketing efforts have been successful in the last year. (Source: VistaPrint Small Business Marketing Report)
2. Social media platforms: Facebook is the most popular social media platform to promote products among small to midsize business owners with a usage rate of 81%. Other commonly used social platforms include Instagram (59%), LinkedIn (48%), X/Twitter (39%) and TikTok (34%). (Source: Verizon State of Small Business Survey)
3. External marketing support: Small businesses that combine in-house marketing with outside support report 2.5 times more marketing success than those relying exclusively on in-house efforts. (Source: SimpleTexting 2024 State of Small Business Marketing report)
4. Customer loyalty programs: 64% of small businesses use loyalty programs to retain customers, up from 57% in 2023. (Source: Loyalty360 Small Business Survey)
5. Influencer marketing: 49% of small businesses plan to use influencer marketing in 2024, up from 36% in 2023. (Source: Influencer Marketing Hub Small Business Report)
6. Video marketing: 72% of small businesses plan to increase their video marketing efforts in 2024. (Source: Wyzowl Video Marketing Statistics)
7. Personalization in marketing: 79% of small businesses report improved customer engagement through personalized marketing efforts. (Source: Salesforce Small Business Trends Report)
8. Social media advertising: 68% of small businesses increased their social media advertising budget in 2024. (Source: Social Media Examiner Industry Report)
9. Social media customer service: 64% of small businesses now offer customer service through social media platforms. (Source: Sprout Social Index)
10. Micro-influencer partnerships: 53% of small businesses are partnering with micro-influencers for marketing campaigns. This trend reflects a growing recognition of the effectiveness of targeted, niche marketing strategies in reaching specific audience segments. (Source: Influencer Marketing Hub Micro-Influencer Report)
11. Digital marketing investment: 18% of small businesses plan to invest in digital marketing in 2024 to enhance their online presence. While this percentage may seem low, it represents a significant shift towards digital strategies, especially among businesses that have traditionally relied on offline marketing methods. (Source: Guidant Financial, 2024)

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Consumer behavior and small business trends

Consumer preferences are shifting, with a growing emphasis on supporting local businesses, ethical practices and sustainability. Small businesses are adapting to these changes by implementing new business models and focusing on customer experience.

1. Shopping at small businesses: 78% of consumers say it's important for them to shop small, with Gen Z shoppers wanting to support local small businesses more than any other age group. (Source: VistaPrint Small Business Marketing Report)
2. Sustainability focus: 78% of small businesses have implemented or plan to implement sustainability practices in 2024. (Source: SMB Group Sustainability Survey)
3. Subscription-based models: 31% of small businesses have implemented or plan to implement subscription-based models in 2024. (Source: Zuora Subscription Economy Index)
4. Green energy adoption: 53% of small businesses have invested in renewable energy sources or energy-efficient technologies. (Source: EnergySage Solar Marketplace Intel Report)
5. E-commerce trends: Online shopping is still on the rise but nearly 70% of Generation X customers prefer to buy their products in a bricks-and-mortar store. This statistic highlights the importance of maintaining a balance between online and offline presence for small businesses catering to diverse age groups. (Source: Fit Small Business, 2024)
6. Ethical practices: Gen Z consumers continue to prioritize brands whose principles align with their own, with 74% stating they would boycott brands that go against their values. This trend underscores the growing importance of corporate social responsibility and ethical business practices in attracting and retaining younger consumers. (Source: Fit Small Business, 2024)

Wrapping up 50 small business stats 2024

We hope these statistics have got you ready to take your business to the next level. If you need help streamlining your small business so you can keep on top of your business and its tasks, explore Capsule CRM.

Capsule is designed to help small businesses manage customer relationships effectively. Explore our CRM and its features to help improve customer interactions.

Sign up for your free trial of Capsule CRM today and discover how it can help you harness the power of data and drive growth.

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