Most people think about starting their business based on their dreams and ideas. They try to get free from all the politics, rules, and other restrictions from their workplace. These are some of the things that can both hamper growth and make things slow for them.
This is why they want to break free and have full control over their professional life to achieve all the goals.
Although starting your own business may sound very challenging and complicated, it is not that hard. You will need to break down the process and take it into multiple steps to do it easily. Here are some of the most effective and common business statistics that you need to know.
If you are planning to start a business or want to grow your business, learning business statistics is one of the crucial things.
Top 10 Business Statistics That Can Help Your Business Grow
There are plenty of business statistics that can help you grow a lot and help you to get a better understanding of the market. Now that you know what is business statistics, we have handpicked some of the best and most effective ones for you.
You need to know them before starting your own business or to grow your existing business. So, here are some of the statistics of business given below in detail that you need to know very well.
1. Medium And Small Businesses Contribute Majorly In The Growth Of Global Economy
Among different business types, the growth drivers in the global economy are small and medium businesses. More than 90% of the total business population is filled with SMEs.
Based on the statistics for business and economics, small businesses are also helping to provide a large number of jobs in different places.
2. Small Business Work For A Lot More
The business statistics indicate that small businesses work a lot more compared to all the other businesses. This is because most of the owners of small businesses try to work harder to get success for their company.
When small businesses are at the beginning stage, they work nearly 60 hours every week. Working nights and working weekends are very common in small businesses.
Small business owners need to ensure that their employees are well looked after. This is because the success of any small business depends on its core group of employees. If you are a business owner, small things like Christmas gifts for employees can help make a major difference. They will feel loved, respected, and worthy.
3. Micro Businesses Are Responsible For Providing Job To 75.3% Employees Of Private-Sector.
Micro businesses are one of the most trending business models right now that comes with roughly 8-9 people. This is the most common business in the private sector. More than 75.3% of employees of the private sector are connected with micro businesses.
4. Small Businesses Are Responsible For Employing A Lot Of People In USA
Based on the business dynamic statistics, small businesses employ more than 59 million employees in the USA. It helps the local economy by providing jobs, stability, financial growth, and others. Apart from that, they contribute to the budget of the government through taxes.
5. Most Of The Small Businesses Are Operated From Home
The work from home concept has come to light all around the world due to the pandemic, but it was always there. Based on the basic business statistics, more than 50% of small businesses in the USA work and make money from home. More than 290 million people work from home in the USA.
6. Nearly 65% Of Small Businesses Start With Only $10,000 Capital.
This is another business statistic that you need to know if you are planning to start a small business. Do not worry if you have a short budget as there are plenty of other businesses that started with only $10,000 capital, and now they are operating fine. Although this amount does not sound like a lot, it is more than enough to manage your business from home.
7. Around 40% Of Small Businesses Comes With Profit.
If you know the essentials of modern business statistics, you are also aware that small stats can be very helpful to you. Among all the small stats, you need to know that despite being filled in the market, only 40% of small businesses are profitable despite being filled in the market.
8. Small Businesses With More Than One Founders Provide Better Result
If you have a partner in your business, that means you will be able to share finances and burdens with someone else. Based on the current business statistics, having two founders for small businesses help to get a better result. More than 30% of money earning potential gets increased when there are two founders in a small business.
9. The Reason Why More than 42% Small Businesses Fail
While small businesses are known to be one of the driving factors in global growth, plenty of small businesses fail miserably. The most common reason for new businesses to fail is the lack of demand in the market.
So, before you start your business, you need to ensure the need for the products and services are high that you are selling. Check the business statistics very well to prevent failures.
10. Biggest Challenges For Most Of The Businesses
Whether you are starting a small business, micro business, or any others, you will need to face a lot of challenges that will hamper growth and restrict the potential. Some of the most common ones include low-quality labor, decreased market demand, marketing efficiency, and others.
Frequently Asked Questions(FAQ)
Q1. What Businesses Are In Demand For 2021?
The demand for businesses changed a lot due to the market shift due to the pandemic. Here are some of the common business ideas that are in demand in 2021.
- Website Flipping
- Online Tutoring
- Personal Shopper
- Print on Demand
- Home-based catering
- Virtual Assistant
Q2. What Percentage Of The Economy Is Small Business 2021?
Based on the current reports, around 99.9% of businesses in the US are small businesses. More than 60.6 million people are connected with these businesses. It is around 47% of the total workforce of the US.
Q3. How Will Small Business Grow In 2021?
There are plenty of steps and points you need to keep in mind to grow your small business in 2021. Here are some of them given below that can be effective for you and help you get a better result.
- Spread the brand story
- Create SEO-friendly website
- Try to invest as much as possible in analytics at the beginning
- Get expertise in your particular niche
- Create a Referral and Reward program
- Promote and create explainer videos
Q4. What Type Of Business Has The Highest Failure Rate?
Among all the other businesses, the information industry is known to have a nationally more failure rate. More than 25% of these businesses failed in the first year, and it increased to 40% in the first three years.
After that, it increased to 53% in 5 years, which is known to be the highest failure rate for any business.
If you are looking for the answer to “is business statistics hard, “ No, it is not hard if you follow some of the most effective ones. However, there are a lot of business statistics available. Choosing the best ones can be challenging, but don’t worry.
We have handpicked the best and most effective business statistics for you that will help you to get better results and grow rapidly. Go through the article to find the most helpful ones for your business and let others know by sharing the article.