To many people, the American Dream today means having your own business, being in charge of your work, or simply having the flexibility to travel or spend time with your family.
The COVID-19 pandemic has made entrepreneurship a viable alternative to traditional occupation. With unemployment reaching staggering heights and work-from-home arrangements becoming increasingly prevalent, more and more people are considering pursuing entrepreneurial ventures.
Are they finding success? To answer that, let’s take a look at some statistics.
Particular places around the globe are more popular than others for those looking to start a new business. Developed countries offer good opportunities thanks to their established infrastructure. Alternatively, in some developing countries, entrepreneurship is often the only way for someone to make a living.
The US proves to be the most desirable place to start a business globally, entrepreneurship statistics in 2022 show. Competitiveness, access to capital, and skilled labor are among the reasons cited for the country’s desirability. Germany, the UK, and Israel follow in the ranking, also providing excellent entrepreneurial opportunities.
The reason for the lack of interest in entrepreneurship in these developed countries is that they often have more traditional employment options available than developing nations. Other countries at the bottom of the entrepreneurship spirit index are Belgium, the UK, and France.
Nonetheless, about 40% of newly-found businesses are run by entrepreneurs aged under 40. On average, they are 38 years old and spend 13 years on their education. Furthermore, 18% manage more than one company. Startups of serial entrepreneurs tend to be 57% bigger when they open than of those who attempt to run their own business for the first time.
According to entrepreneur trends, these states tend to have a lower cost of living than coastal states like California and New York while also providing access to capital and a large skilled labor force. Other factors that make them desirable options include good infrastructure and the affordable cost of doing business.
The US currently has over 31 million entrepreneurs. Interestingly, about 55% of US adults say they have started a business at some moment in their lives, and 26% have founded at least two firms. Fun facts about entrepreneurship reveal the general attitude is very positive as 63% of the population consider it a good career option.
Many people are likely to turn to entrepreneurship after gaining experience in a corporate job. In terms of motivation for their decision, 55% want to be their own boss, while another 39% have found their passion and decided to follow it. 25% of entrepreneurs felt dissatisfied with the corporate world and wanted a change.
The average entrepreneur’s salary range tends to be lower than the average traditional US salary. Namely, 83% make less than $100,000 annually. Furthermore, another significant disadvantage is unpaid overtime. However, most self-employed people rank freedom more important than income.
Entrepreneurship is not an easy road. However, despite the challenges and insecurity involved in running your own business, an overwhelming proportion of people say they will never go back to traditional employment, according to statistics about entrepreneurship.
Only about 12% of entrepreneurs have a formal education in business-related studies—9% have a bachelor’s degree, and 3% have a master’s or Ph.D. However, another 32% have invested in business classes. Nonetheless, entrepreneurs’ confidence in their skills is similar with or without a diploma.
According to local business statistics, 44% of the US economy is powered by small businesses. They create nearly two-thirds of the new jobs. What’s more, small companies have been growing at a CAGR of 1.4% for the last few years.
That was a record-high figure following 16 months of increased entrepreneurial activity in the US. The reason for this was the displacement of workers from traditional employment because of the COVID-19 lockdown measures—a whole new demographic found opportunities as home-based entrepreneurs.
Dropshipping is creating an online store to fulfill customer orders without keeping the products on hand yourself. It is now one of the top entrepreneur jobs for new business owners. The initial boom in popularity the practice saw throughout the pandemic is predicted to continue.
With the rise of the work-from-home opportunities the pandemic presented, more people are ready to make the leap into self-employment. As a result, micro and small businesses now offer about 41 million positions and are responsible for approximately a $5 trillion market share.
The number of businesses with employees dropped during the pandemic, as small companies closed and people were laid off. At the same time, unemployed people began freelancing, contracting, and starting ventures independently, so the number of businesses considered sole-proprietorships rose.
This entrepreneurship trend is likely to continue in the coming years, as large companies hire more contractors and fewer full-time employees.
Just 14% of business owners say they prefer to learn from a book. Meanwhile, 19% took advice from a colleague, and 13% relied on online forums. The least trusted resource is work conferences, chosen by just 6% of self-employed people.
Contrary to their belief, many small organizations would benefit from an online presence and platforms like SERP checker to optimize their SEO. According to entrepreneur statistics, 2022 will see an increasing number of small businesses profiting from localized SEO.
The reasons for the lack of investment in online marketing channels differ. 35% of entrepreneurs with small companies say they would have one if their business were bigger, and 21% plan to create a website for their business in the coming year.
99% of people check their email at least once a day—and often many more times than that. Entrepreneurship statistics show that email marketing is incredibly cheap to implement and surprisingly effective. Namely, the ROI for most email marketing campaigns is $36 generated for every $1 spent.
According to the most recent reports, subscription businesses experienced 11.6% annual revenue growth. All types of companies, from retailers and streaming platforms to gyms, grocers, and even restaurants, are now implementing subscription services. It presents an excellent opportunity for first-time entrepreneurs.
Immigrants face many barriers to traditional employment, including citizenship status, discrimination, and language barriers. Consequently, entrepreneurship is often a more attractive path. However, of the 6.2 million foreign-born business owners, over 5.4 are non-employers.
According to Black entrepreneurship statistics, only 6% of entrepreneurs identify as Black or African American. Furthermore, 14.3% are Hispanic or Latino, and 6.2% are Asian. The lowest representation is of American Indian and Alaska Native entrepreneurs that are only 0.5% of all business owners in the US.
That is one of the most significant female entrepreneurship statistics for 2022. It indicates the highest percentage of female business owners in any segment. Additionally, 33% of Black entrepreneurs have a bachelor’s degree, and 26% have a master’s.
This figure represents about 42% of all companies in the country. What’s more, the majority of the women—62%—are aged 40 to 59. Another interesting fact is that 80% of all female entrepreneurs had college degrees and extensive work experience before starting their own businesses.
While entrepreneurship is not a guaranteed path to success, optimism about self-employment in the US is at an all-time high. More people than ever are considering leaving traditional employment to pursue their own endeavors—freelance work, sole-proprietorships, and entrepreneurship.
We will continue to feel the effects of changes brought about by the COVID-19 pandemic throughout 2022 and beyond. It has spurred many would-be entrepreneurs to start their own businesses ahead of schedule. What’s more, new business owners know that technology is crucial to their success and are now open to innovation.
There are 582 million entrepreneurs in the world in 2022. The countries with the highest number of entrepreneurs tend to be developing nations—Brazil, Thailand, and Uganda—because of the lack of traditional employment opportunities in those countries.
Furthermore, there are 31 million entrepreneurs in the US currently, but over half the population has attempted to start a business at least once in their lifetime.
In the US, 65% of people surveyed expressed interest in becoming entrepreneurs. People who want to start their businesses usually cite being their own boss as the main reason driving them, followed by wanting to pursue their passion and having control over their work-life.
Many have attempted to start their own business—55% of US adults—and the country ranks on the top of the list of “best countries for entrepreneurship.”
About 20% of all businesses fail within their first year. After five years, about 50% are successful, and after ten years, only about one-third remain. The main reasons for business failure are lack of money, not finding a market fit, insufficient investment in marketing, and burnout.
To be successful as an entrepreneur takes a lot more than grit and a good idea. You need substantial funding, a good sense of the market, business, and soft skills.
While some business moguls make billions of dollars a year, the reality for most entrepreneurs is much less exciting. Most self-employed people make less than $100,000 annually, and one-third earn less than $33,000.
Being your own boss comes with many benefits—flexibility, the pursuit of dreams, and better work-life balance—but it brings some disadvantages, too. For example, the required overtime is never paid.
The minimum age to form a legal business entity in the US is 18—however, minors can start businesses with help from their parents. Caregivers can establish an organization on their child’s behalf, and in some states, minors are allowed to serve on the board of directors of a corporation.
Underaged people that have been emancipated from their parents must work with their appointed guardian to set up a business. You can find many interesting entrepreneurship statistics regarding minors and other startup statistics useful for young business owners.
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