The success of small businesses is an integral part of the US economy. From generating 32.9% of total business revenues to creating 1.6 million net jobs in 2019, these enterprises have a significant impact on our nation's economic growth and stability. However, with only 79% surviving their first year and 40% predicted to survive the COVID-19 pandemic, it is important for us to understand more about small business revenue statistics so that we can better support them during difficult times like this one. This blog post will explore 20 different facts related to small business revenue statistics from sources such as The Small Business Administration (SBA), Bureau of Labor Statistics (BLS), U.S Census Bureau, Guidant Financial Group Inc., Fundera Inc., Digital Commerce 360 LLC and CNBC LLC..
This statistic is a powerful reminder of the importance of small businesses in the United States. It highlights the fact that small businesses are the backbone of the economy, providing jobs and revenue to millions of Americans. It also serves as a reminder that small businesses are essential to the health of the economy and should be supported and encouraged.
Small businesses generate 32.9% of the total US business revenues.
This statistic is a powerful reminder of the immense contribution small businesses make to the US economy. It highlights the importance of small businesses in driving economic growth and prosperity, and serves as a reminder of the need to support and nurture small businesses in order to ensure their continued success.
Small Business Revenue Statistics Overview
Only 31.4% of businesses in the goods-producing sector survive past the 5-year mark.
This statistic is a stark reminder of the difficulty of sustaining a business in the goods-producing sector. It highlights the need for small businesses to be aware of the risks associated with this sector and to be prepared to take the necessary steps to ensure their survival. It also serves as a warning to potential entrepreneurs that the goods-producing sector is a challenging environment and that success is far from guaranteed.
The average revenue for a small business is $388,000 per year.
This statistic is a powerful indicator of the potential success of small businesses. It shows that, on average, small businesses are able to generate a substantial amount of revenue each year, which can be used to reinvest in the business and grow it further. This statistic is an important piece of information for any small business owner looking to understand the potential of their business and how to maximize their profits.
Small businesses created 1.6 million net jobs in 2019.
This statistic is a testament to the power of small businesses in the economy. It shows that small businesses are a major source of job creation, and that they are a vital part of the economy. This statistic is especially important in the context of small business revenue statistics, as it demonstrates the potential for small businesses to generate revenue and create jobs.
Small businesses have created 62% of new jobs since 1993.
This statistic is a powerful testament to the importance of small businesses in the economy. It highlights the fact that small businesses have been a major driver of job creation over the past two decades, and underscores the need for policies that support small business growth and success. This is especially relevant in the context of small business revenue statistics, as it demonstrates the potential for small businesses to generate significant economic activity and employment opportunities.
Small businesses with less than 100 employees have the lowest survival rate at 79.1% after one year.
This statistic is a stark reminder of the fragility of small businesses. With only 79.1% of businesses with less than 100 employees surviving after one year, it is clear that small businesses face a difficult road ahead. This statistic highlights the importance of understanding the revenue statistics of small businesses in order to ensure their success and longevity.
In 2019, the United States had 31.7 million small businesses.
This statistic is a powerful reminder of the sheer magnitude of small businesses in the United States. It serves as a testament to the strength and resilience of the small business sector, and provides a valuable insight into the potential of small business revenue. It is a key indicator of the economic health of the nation, and a reminder of the importance of small businesses in the US economy.
Veteran-owned firms had $1.14 trillion in total receipts in 2017.
This statistic is a testament to the success of veteran-owned businesses, demonstrating their ability to generate significant revenue. It is a powerful reminder of the potential of veteran-owned firms and the importance of supporting them. It also serves as a reminder of the importance of small businesses in the economy, as veteran-owned firms are a key component of the small business sector.
Women-owned businesses had $1.8 trillion in receipts in 2017.
This statistic is a testament to the incredible success of women-owned businesses in 2017. It highlights the immense potential of female entrepreneurs and the positive impact they have had on the economy. It also serves as a reminder of the importance of supporting small businesses, especially those owned by women, in order to ensure continued growth and success.
Service sector businesses have the highest 5-year survival rate at 37.6%.
The statistic that service sector businesses have the highest 5-year survival rate at 37.6% is a testament to the resilience of small businesses in the service sector. It shows that despite the challenges of the current economic climate, these businesses have been able to stay afloat and continue to provide valuable services to their customers. This statistic is a reminder that small businesses are an integral part of the economy and should be supported and encouraged to thrive.
In 2020, there was a 24% increase in new business applications compared to 2019.
This statistic is a testament to the resilience of small businesses in the face of a tumultuous 2020. Despite the economic uncertainty and disruption caused by the pandemic, small businesses have continued to innovate and grow, as evidenced by the 24% increase in new business applications. This is a positive sign for the future of small business revenue.
79% of small business owners use social media to promote their business.
This statistic is significant in the context of small business revenue statistics because it demonstrates the importance of social media in the success of small businesses. By leveraging the power of social media, small business owners are able to reach a wider audience and increase their visibility, which can lead to increased revenue. Additionally, social media can be used to build relationships with customers, which can lead to increased loyalty and repeat business.
40% of small businesses are profitable, 30% break even, and 30% lose money.
This statistic is a crucial insight into the financial health of small businesses. It paints a vivid picture of the reality that many small businesses face, with only 40% of them being profitable, 30% breaking even, and 30% losing money. This statistic is an important reminder of the risks and challenges that come with running a small business, and it serves as a valuable reference point for anyone interested in learning more about small business revenue statistics.
Only 40% of small businesses are predicted to survive the COVID-19 pandemic.
This statistic is a stark reminder of the devastating impact the COVID-19 pandemic has had on small businesses. It highlights the need for more support and resources to help small businesses survive and thrive in the current economic climate. It also serves as a warning to small business owners to be prepared for the potential financial losses they may face in the coming months.
Conclusion
Small businesses are an integral part of the US economy, accounting for 99.7% of employer firms and generating 32.9% of total business revenues in 2019. Despite this impressive contribution to the economy, small businesses face a number of challenges that can make it difficult to survive past their first year; only 80% do so on average with even lower survival rates among those with less than 100 employees (79.1%). However, there is still hope as many minority-owned and veteran-owned small businesses have achieved success over time while new applications continue to increase each year despite economic downturns such as COVID-19 pandemic which has put 40% at risk for closure or bankruptcy due to lack of resources or access to capital needed during these times. With proper planning and support from government initiatives like PPP loans, more entrepreneurs will be able to take advantage of opportunities available in order create successful small businesses that contribute significantly towards job creation and overall economic growth within the United States
References
0. - https://www.census.gov
1. - https://www.sba.gov
2. - https://www.guidantfinancial.com
3. - https://www.bls.gov
4. - https://www.cnbc.com
5. - https://www.smallbiztrends.com
ZipDo, cited June 2023: Small Business Revenue Statistics
