Entrepreneurship is gaining prominence among the masses, and many are seeing it as a viable career option. After all, who would not like to be their own boss? Even though the world witnessed an economic disaster last year due to COVID-19, there are still people who want to make 2021 their year and create their own companies to fulfill new demands that have emerged after the pandemic.
New entrepreneurs are stepping into the business world at a never-before-seen rate. You can gain knowledge from these entrepreneur statistics and seek inspiration to start your own venture or simply learn more. Let us have a look at these numbers now.
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Recent Entrepreneurship Statistics to know
- Almost ninety percent of the billionaires from the United States are self-made.
- For the year 2016, there were 26 million entrepreneurs in the process of starting their businesses or had already started in the United States.
- The most common reason for the failure of businesses was the lack of market need for the product or service.
- 46 percent of the small business entrepreneurs lie in the age range of 41 to 56.
- Globally, there are more than 582 million entrepreneurs.
- One-fifth of the businesses shut down in their very first year.
- Middle-aged men enjoy the most success when they start a business.
Woman Entrepreneurs Statistics
Let us have a look at how many female entrepreneurs are there in the world. At the end of the year 2019, the world had around 252 million woman entrepreneurs who had their mark in one sector or another. However, female entrepreneurs are not at all concentrated in the most developed countries. The region which has the most female business owners in sub-Saharan Africa. In this region, almost 22 percent of the women are engaged in running some kind of business. Closely following, the next region is Latin America, where around 17 percent of women are entrepreneurs.
The second poorest rates of women entrepreneurship are witnessed in the Middle East and North Africa. In this region, only nine percent of females are entrepreneurs. The most backward area in this field is Europe which has a meager six percent rate of female entrepreneurship. Women have a higher rate of solopreneurship among them than men do. Around 36.4 percent of women prefer to work as solopreneur. In comparison, only 26.9 percent of men work as solopreneurs. Out of the 252 million businesswomen, only 2.5 percent of them (which amounts to 3.6 million) keep more than 20 employees in their business.
In 1972, the world had only 402,000 businesses founded by women. If we look at the data today, close to 1800 women go ahead and start their own venture. Out of all these businesses, women of color were responsible for starting 64 percent of these. Inclusivity, female empowerment, and diversity are important factors to determine how far we have progressed as a society. It is heartening to see that entrepreneurship is respecting these values.
Entrepreneur Statistics and Ethnicity
- Asian people have a higher chance of becoming entrepreneurs. A report showed that people from an Asian background have a higher chance of more than 50 percent of becoming entrepreneurs compared to other ethnicities in the US. The same study revealed that members of the Hispanic community had a 25 percent lesser chance of becoming business owners.
- One-fifth of businesses run by women have an African-American woman as their owner. Companies owned by African American women saw the highest rate of growth during the period 2017-18. Coming to companies owned by Asian women, around 9 percent of women-owned businesses were run by Asian women.
- Let us have a look at the performance of African American entrepreneurs. Black businessmen are concentrated majorly in the business services industry. 20 percent of black entrepreneurs provide business services solutions. The other major industries where they start a business are food and restaurant, construction and contracting services, beauty, health, and fitness services. African American businessmen face the most challenges when it comes to cash flow. They also face issues pertaining to marketing and advertising. Proper time management is also lacking, which is a cause of concern. Businesses owned by African Americans have a lower profit percentage when compared to the national average. 78 percent of businesses are profitable in the country, whereas 72 businesses owned by African American entrepreneurs are profitable.
Entrepreneur Statistics related to Profit
The job of an entrepreneur does not end with the starting and setting up of a business. He has to ensure that the business is churning some good numbers consistently and does not cross the red line. Close to 78 percent of businesses are currently earning profits and have not crossed this red line.
However, all businesses do not have the same privilege, which enables them to earn profits easily. There are different types of businesses that do not have the same opportunities when it comes to making profits. For example, dental and medical clinics have a huge starting cost when compared to an online store.
So, the industry you decide to dive into can have a big impact on your profits. Some studies that were conducted recently revealed that the accounting industry has the highest net profit margin among all sectors. The margin for this industry is close to 18.4 percent. The second in number is real estate which has a margin of 17.9 percent, followed closely by legal services that have a profit margin of 17.4 percent.
Middle-aged Entrepreneurs
The average age of an entrepreneur was estimated to be 50.3 years. It might be a coincidence that the most successful entrepreneurs are of the same age, i.e., in their 50s. Also, it is men that are more successful in their business journey. So, contrary to popular belief, it is not young businessmen that taste the most success.
It is these seasoned individuals that have a higher chance of making their mark on the business world. The average age of an entrepreneur who hires one more employee in his organization was found out to be 42.
Entrepreneur Strategy Statistics
- 55 percent of the entrepreneurs are of the opinion that it is essential to stay free on weekends and spend time with their loved ones.
- 20 percent run their business with the assistance of their family members, and their family has some ownership in the company too.
- 58 percent of the entrepreneurs accept that giving time to their family in the evenings had a positive effect on their productivity and enhanced their entrepreneurial abilities.
- 33 percent of the entrepreneurs have admitted that they took the help of a mentor or a support group and took their advice for running their businesses smoothly.
- Almost 50 percent of businessmen invest their money in marketing campaigns such as advertising, PR, and social media. They do this so that they can promote their business and gain more customers.
- 30 percent of the entrepreneurs fall into the category of serial entrepreneurs. This means that they have owned more than one business in their lifetime and hold a lot of experience when it comes to managing a company.
- 84 percent of the entrepreneurs utilize their skills and expertise to start their businesses.
Minority Entrepreneur Statistics
Many citizens of the United States are turning to entrepreneurship owing to the various benefits this field has to offer. But how many of these new businesses are owned by minorities? The latest data we have tells us that almost two million businesses were started in the US in the last ten years. Of this huge total, minorities are owners of almost half of these.
We have data that tells us that there are close to 4 million businesses in the United States that are owned by minorities. These businesses have generated an impressive sales figure of $700 billion each year. Minority entrepreneurs have increased in number an impressive rate of 35 percent. This shows that in the coming years, minorities are taking more interest in the field of entrepreneurship.
Despite these promising figures, there is still a widening gap. One-third of the population of the United States belongs to the minority. However, the percentage of minority entrepreneurs is a dismal figure of 18 percent. This goes on to show the disparity and the inequality which still exists despite the social developments taking place.
Entrepreneurship during the time of the Pandemic
- 68 percent of the entrepreneurs are very worried about the possible effects the pandemic might have on business activities and markets.
- 15 percent of startups struggled during the times of COVID-19. Their revenue decreased by more than 80 percent since the inception of the pandemic. So, the COVID-19 crisis has had an actual impact on businesses and their cash flow.
- However, there is a bright side to this dismal tale as well. Around 12 percent of startups have witnessed a good increase in their revenue since the pandemic started. This pattern was mostly seen in B2C companies. So, some companies have actually benefited in this unprecedented period.
- Only 63 percent of businesses were able to generate profits in 2020. In comparison, 78 percent of the businesses managed to register a profit in 2019. The pandemic has greatly impacted the profit-making ability of businesses. As we can see, more businesses were making losses in 2020 than in 2019.
- Almost 80 percent of entrepreneurs believe their businesses will survive the brunt of the pandemic and they will continue functioning after the COVID-19 crisis has ended.
- Almost half of the small business owners expressed confidence that the post-pandemic future will turn out to be good for them and said that they looked forward to it. Entrepreneurs are showing optimism and believe they have a good future in store for them.
Conclusion
The journey of an entrepreneur is not a bed of roses and requires a lot of perseverance and dedication. Despite these challenges, the world is witnessing the rise of several entrepreneurs across many fields. The pandemic may have dampened this growth but we expect it to pick up the pace soon enough. Women entrepreneurs and minority entrepreneurs are also taking the centre stage as the world is learning and accepting the diversity in our surroundings. To read more SaaS statistics like these, visit our blog now!
