7 Eye-Opening Small Business Revenue Statistics You Need to See
As a small business owner, there are many things to consider when trying to improve your bottom line. In order to make informed decisions, it’s essential to stay up-to-date with current industry trends and statistics. Here are seven eye-opening small business revenue statistics that you need to see.
1. Small Businesses Generate Over 40% of the US Gross Domestic Product
Small businesses are a vital component of the US economy. According to the Small Business Administration (SBA), small businesses are responsible for generating over 40% of the US gross domestic product (GDP). This highlights the importance of small businesses in driving economic growth and job creation.
2. Only 50% of Small Businesses Survive Beyond Five Years
Starting a small business can be tough, and the statistics prove it. Only 50% of small businesses survive beyond the first five years. This is often due to a lack of funding, poor management, and insufficient market demand. However, small businesses that do survive the initial stages often have a higher chance of long-term success.
3. Small Business Owners Work an Average of 52 Hours per Week
Small business owners are known for their hard work and dedication. According to a survey by The Alternative Board, small business owners work an average of 52 hours per week. This is significantly more than the average American worker, who works around 38 hours per week.
4. Over 60% of Small Businesses Don’t Have a Website
In today’s digital age, having an online presence is crucial for small businesses. However, over 60% of small businesses don’t have a website. This can make it challenging for potential customers to find and learn about their products or services. Creating a website is an important step towards improving revenue and increasing brand awareness.
5. Small Business Revenue Has Increased by 60% in the Last Decade
Despite the challenges faced by small businesses, revenue has increased by 60% in the last decade. This is a testament to the hard work and innovation of small business owners. It also highlights the potential for growth and success in the small business sector.
6. Nearly 70% of Small Business Owners Use Social Media for Marketing
Social media has become an integral part of small business marketing strategies. Nearly 70% of small business owners use social media to promote their products and services. Platforms such as Facebook, Instagram, and LinkedIn provide a cost-effective way to reach a wider audience and build brand loyalty.
7. Small Businesses Employ Over 60 Million People
Small businesses are significant employers in the US. They are responsible for employing over 60 million people nationwide. This highlights the role they play in providing job opportunities and supporting local communities.
Conclusion
These seven statistics demonstrate the importance of small businesses in the US economy. While there are challenges to overcome, there are also opportunities for growth and success. Small business owners who stay informed and adapt to changing market conditions have the potential to achieve long-term profitability.
