If you’re an entrepreneur – you know the drill: every day is a new opportunity to achieve your goals and make a difference in the world. It’s also a chance to learn—no matter how long you’ve been in the game.
That’s why we put together this list of 21+ entrepreneurial statistics. Whether you’re just starting out or you’re a seasoned pro, these numbers will give you some insight into the world of entrepreneurship. Check them out and see how you can use them to power your business journey!
- The average age of entrepreneurs who hire at least one employee is 42
- 31% of entrepreneurs have an associate degree
- Approx. 16% of the adult workforce in the US are entrepreneurs
- 55% of entrepreneurs are motivated by a desire to be their boss
- The median income for self-employed owners of incorporated small businesses: is $51,816
Who Are Entrepreneurs?
Entrepreneurs come from all walks of life. They’re young and old, men and women, and they come from every corner of the globe. But there are some things that all entrepreneurs have in common.
For starters, entrepreneurs are risk-takers. They’re not afraid to take a chance on an idea, even if there’s a chance it might not work out. They’re also hard workers. Furthermore, they know that for their business to be successful, they need to put in the effort.
1. The average age of entrepreneurs who hire at least one employee is 42
Starting your own business has its appeal; not only do you get to be your boss but with entrepreneurship on the rise, a large portion of our workforce is made up of entrepreneurs. What may come as a surprise is that according to statistical research, there is an average age of 42 among entrepreneurs who hire at least one employee.
2. 31% of entrepreneurs have an associate degree
An even more interesting fact is that 31% of these entrepreneurs have an associate degree and 62% of adults think that entrepreneurship provides an excellent career path. Ultimately, it’s no surprise why over half a billion people worldwide are seizing the opportunity to become their boss and make their mark in this incredible and ever-growing sector.
3. Approx. 16% of the adult workforce in the US are entrepreneurs
Approximately 16% of the American adult workforce is made up of entrepreneurs, according to recent estimates. This remarkable statistic signals an undeniable shift in the job market as more and more individuals are taking the bold step to turn their business dreams into reality. While there can be challenges that arise along the way, including figuring out what business concept will be most viable or finding ways to capitalize, it is clear that many are embracing these obstacles and forging their paths to successful ventures. With this influx of bravado and ambition, the landscape of our economy continues to reinvent itself and provide exciting opportunities for all those involved.
What Do Entrepreneurs Need to Be Successful?
To be successful as an entrepreneur, you need a few things. The first is drive and motivation.
4. 55% of entrepreneurs are motivated by a desire to be their boss
A whopping 55% of entrepreneurs are motivated by the desire to be their boss, according to a study by the Kauffman Foundation.
5. 26% of entrepreneurs turn to the internet for business-related advice.
Second, you’ll need some business acumen. This comes in the form of education, experience, or both. A study by Bentley University found that while 31% of entrepreneurs have an associate degree, 26% of entrepreneurs turn to the internet for business-related advice.
6. For 43% of employees, the biggest benefit of being self-employed is control over one’s career.
But the biggest benefit of being self-employed, according to a study by SimplyBusiness, is control over one’s career. For 43% of employees, this is the biggest benefit of being self-employed and depending only on themselves.
How Are Entrepreneurs Different From Small Business Owners?
There are a lot of misconceptions about the difference between entrepreneurs and small business owners. The truth is, there is a lot of overlap, but there are some key distinctions.
7. 35% of entrepreneurs and small business owners are in the 50-59 age bracket
Entrepreneurs are focused on long-term growth, while business owners are more focused on day-to-day operations. And while 35% of entrepreneurs and small business owners are in the 50-59 age bracket, only 18% of small businesses are owned by people over the age of 60.
8. 46% of people who start small businesses are between the ages of 41 and 56.
Entrepreneurship is booming among middle-aged adults, as recent research has shown that 46% of people who start small businesses are between the ages of 41 and 56. Accompanying this phenomenon is an increase in dynamism across industries, with ambitious professionals bringing experiences from prior roles to inform their current business ventures.
Undoubtedly, the blossoming of middle-aged entrepreneurs has had a positive impact on the economy, generating new and innovative solutions to tackle existing challenges. Furthermore, established networks in various business sectors serve to improve the success rates of these ventures. As such, increased entrepreneurship in the middle age demographic is indicative of notable socio-economic progress worldwide.
9. 32% of small business owners have only taken a couple of business classes
Another key difference: 32% of small business owners have only taken a couple of business classes, compared to the 20% of entrepreneurs who have taken no classes at all. This indicates that entrepreneurs are more likely to be self-taught and passionate about their work.
10. 20% of small businesses fail in the first year.
20% of small businesses fail in the first year. This is significantly higher than the 2-3% failure rate for larger businesses.
What Is the Current State of Entrepreneurship Globally?
Now that we’ve looked at some statistics about entrepreneurship in the US, let’s take a step back and look at the bigger picture.
11. 14% of the adult population involved in early-stage entrepreneurial activity
According to the Global Entrepreneurship Monitor, in 2019, 14% of the adult population globally was involved in early-stage entrepreneurial activity. This is down from 16% in 2018.
12. North America was the region with the highest rate of entrepreneurship
The GEM report also found that North America was the region with the highest rate of entrepreneurship, with a total score of 83.6. The next highest region was Latin America & Caribbean, with a score of 73.3.
13. Construction is the most popular profession for entrepreneurs at 12.5%
Construction is one of the most popular avenues for entrepreneurs, as 12.5% of business owners are employed in this field. This comes as no surprise, given that construction services provide varied and reliable income sources. The wide range of projects—ranging from residential housing to commercial buildings—offers a wealth of opportunities for entrepreneurs to carve out their niche.
Furthermore, there are plentiful materials and supplies available at competitive prices, making it easier for business owners to continually hone and expand their skill set and product portfolio. Construction shows no signs of slowing down in terms of its popularity as an entrepreneurial venture, making it indispensable in the marketplace.
14. 45% of US entrepreneurs have a bachelor’s degree or higher
A startling 45% of entrepreneurs in the United States have obtained a bachelor’s degree or higher, and this popular choice of academic achievement speaks volumes about the power of having an educational background when launching and managing a successful business. Many aspiring business owners opt for college degrees related to their chosen industry, such as economics or computer science, while others pursue general studies courses that provide them with an introduction to various topics in business stewardship. Whatever angle they choose, ambitious entrepreneurs from all walks of life can set themselves up for success by earning a degree and applying the knowledge they gain to their venture.
15. In Brazil, 53% of entrepreneurs operate on their own.
In Brazil, starting a business is a popular option for aspiring entrepreneurs, as 53% of all businesses are run solely by one person. This type of single-founder business can have many advantages; lower startup costs, fewer conflicts when making decisions, and more control over their product or service.
Solo operators need to be aware of the potential challenges that come with running a business alone, such as finding support and resources, networking to build customer relationships, and accomplishing more with limited resources. Regardless of its challenges, being an intrapreneur in Brazil is an exciting opportunity with the potential for great success.
16. 90% of new American billionaires are self-made
According to research, the vast majority of new American billionaires – 90% to be exact – have achieved their wealth and success through hard work, determination, and innovation. This is what is known as “self-made” status – the foregoers of this financial tier worked their way up from the bottom without any external support or family wealth. In recent times, such individuals are becoming increasingly common in the American scene, highlighting a spirit of ambition that is truly remarkable. It shows that anything can be accomplished when one puts their mind to it; that with determination and dedication even the biggest dreams can come true. Moreover, these achievements are also a testament to a stronger economy that rewards those who strive towards greater financial heights.
What Is the Average Salary of an Entrepreneur?
17. The median income for self-employed owners of incorporated small businesses: is $51,816
You might be wondering what the average salary is for an entrepreneur. According to PayScale, the median income for self-employed owners of incorporated small businesses is $51,816.
18. The average annual salary of Entrepreneurs in the US is $127,463
The average annual salary of entrepreneurs in the US is $127463, according to the same source. This number will, of course, vary depending on factors such as the size of the business and its industry.
What Challenges Do Entrepreneurs Face?
19. 79% of small businesses have outstanding debt.
Small businesses are often fragile and the current economic climate is having a huge impact on the nation’s small business sector. The recent trend that 79% of small businesses have an outstanding debt is a worrying sign, as this can suggest their limited capacities to survive amid a crisis.
Debt places a further financial burden on already overstretched operations, while also creating uncertain futures for those who rely on small businesses to make a living. Governments must work to provide specific short-term assistance to such small businesses and craft policy initiatives that facilitate healthy investment opportunities with long-term returns. This could ensure that the debt repayment obligations of these entities become more manageable and those employed by them are not left in dire straits.
20. 59% of entrepreneurs who apply for a loan use it to expand their business.
Entrepreneurs are ambitious, creative, and driven individuals who don’t shy away from taking risks to expand their businesses and generate wealth. Many entrepreneurs make a conscious decision to apply for loans to access the resources needed to scale up operations.
A survey recently revealed that 59% of entrepreneurs use loan products specifically to expand their businesses. This demonstrates the power of borrowing to pursue ambitious business goals and grow companies into successful enterprises. It is an incredibly positive sign for the small business sector and indicates that entrepreneurs are confident in leveraging debt for their commercial endeavors.
21. For 27% of entrepreneurs, the hardest thing is to find talented staff or contractors.
Starting a business is no easy feat, and for many entrepreneurs, one of the most daunting tasks can be finding talented staff or contractors to help them launch their ideas and reach their goals. After all, having a great team makes the path to success more likely to be successful – these key players will help bring your vision to life through hard work and dedication.
Unfortunately, 27% of entrepreneurs find this task especially challenging. It’s not enough to just pick someone from online job postings – you need reliable professionals who are committed and passionate about your mission. It can be worth investing in recruiting firms and engaging with professional networks to secure top talent for your business. Ultimately, having a talented team is essential if you want your business venture to thrive.
22. 62% of small business owners use personal funds to deal with various financial challenges.
Many small business owners view personal funds as necessary for ensuring their businesses’ financial security. According to research, 62% of these individuals turn to their accounts and other assets as a last resort to dealing with financial issues such as paying back debt, payroll, and making important investments.
This can be an especially risky venture for any individual and every business owner must have a proper understanding of the advantages and risks associated with using personal resources to make sure they remain in control of their finances. It is equally important to consider all aspects of the decision-making process before opting to enter into any financial situation involving one’s finances.
So, what does all of this mean for the modern entrepreneur? Well, the most important thing to take away is that there is no one-size-fits-all strategy. Your approach to entrepreneurship should be tailored to your skills, strengths, and goals.
Diane H Wong is an online essay writer on KingEssays. Her favorite challenge is jumping into new technology and learning about the latest marketing techniques. In this case, Diane has a chance to share her experience with other people and stay on top of evolving tech trends.
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