# 10 Small Business Statistics That Will Inspire You Canonical URL: Published: 2024-10-20 Source: FloLoop () Sometimes when we here the term "Small Business" we think of the corner mom and pop store (which is absolutely a small business) but what classifies a small business is much bigger than you might think. According to [Census.Gov](https://www.census.gov/library/stories/2021/01/what-is-a-small-business.html#:~:text=It%20defines%20small%20business%20by,of%20%2416.5%20million%20or%20less.) a small business earns $40million or less and has 1,500 employees or less. That means there's a ton of opportunity to build and grow a small business and it can even make you very rich (even though it's called small business). The thing that is the most inspiring to me about entrepreneurship is that it enables people to take their destiny into their own hands. With so much concern over the global economy, how AI might displace jobs, and general inflation, it may be the best time for you to consider starting your own business. Here are 10 stats that put an emphasis on the positive. Yes there are are anecdotal statistics like "90% of startups fail" but there are many different types of small businesses, not just tech startups "revolutionizing the x industry". ### **1. Small Businesses Account for 99.9% of US Businesses** When I was starting my first business, stories of Apple & Microsoft overshadowed the business and tech space. What I didn't realize at the time and what you may not know is small businesses make up 99.9% of all US businesses, demonstrating their prevalence and essential role in the economy. This statistic reflects the entrepreneurial spirit and dedication of countless individuals who contribute to their communities. **Source:** [Small Business Administration: Small Business Profile](https://advocacy.sba.gov/wp-content/uploads/2023/11/2023-Small-Business-Economic-Profile-US.pdf) ### **2. Small Businesses Create 1.5 Million New Jobs Annually** Small businesses are significant job creators, responsible for generating 1.5 million new jobs each year in the United States. Their growth fuels employment opportunities and economic stability. Naturally by starting a business you will need goods & services, so even if you're not hiring people directly as your employee you will be supporting other small businesses that do. **Source:** [US Chamber of Commerce: Small Business Job Creation](https://www.uschamber.com/small-business/state-of-small-business-now) ### **3. Women-Owned Businesses Are Growing Rapidly** There is less discrimination and lack of opportunity when you control your destiny. I wish I could say there is none, but at least you get to pick and choose who you work with, and who you service. The number of women-owned businesses has grown by 21% over the last five years, outpacing the overall growth rate of all businesses. Women now own 42% of all businesses in the US, contributing to diverse and innovative approaches in various industries. **Source:** [American Express: The 2019 State of Women-Owned Businesses](https://www.docdroid.net/Ei3GWMF/2019-state-of-women-owned-businesses-report-pdf) ### **4. Small Businesses Are Major Contributors to Local Economies** Since small businesses are owned by the people who live in local communities it makes sense that approximately 70% of small businesses support their local communities by donating to local charities and organizations. This commitment helps strengthen community ties and fosters a culture of giving. **Source:** [National Federation of Independent Business: Small Business Optimism Index](https://www.nfib.com/surveys/small-business-economic-trends/) ### **5. 80% of Small Businesses Survive Their First Year** "But I thought 90% of all startups fail?!"... Yeah but small businesses aren't silicon valley startups and despite challenges, 80% of small businesses make it past their first year, showcasing the resilience and determination of entrepreneurs. This statistic highlights the potential for growth and success in the long term. **Source:** [Civic Economics: The Economic Impact of Local Businesses](https://www.civiceconomics.com/impacts.html) ### **6. Small Businesses Are Increasingly Adopting Technology** Because tools like [FloLoop](https://floloop.com/) exist to serve the small business it means many times the service and value you would get as a consumer from a small business is a better experience that a national or international brand. Around 77% of small businesses plan to invest in technology to improve their operations and customer engagement. This trend towards digital transformation is empowering small businesses to compete effectively in the digital age. **Source:** [Freelancers Union: Freelancing in America](https://freelancersunion.org/wp-content/uploads/2023/03/freelancinginamericareport-2018.pdf) ### **7. 65% of Small Businesses Have Increased Revenue Since 2020** Yes you read that correctly. Even with the effects of the pandemic, even with inflation small businesses are increasing their revenue. In fact despite the challenges of recent years, 65% of small businesses report increased revenue since 2020, indicating a strong recovery and adaptability to changing market conditions. **Source:** [Forbes: 65% of Small Businesses Report Increased Revenue](https://www.forbes.com/sites/allbusiness/2024/05/01/new-reports-show-small-business-owners-are-mostly-positive-about-2024/) ### **8. 70% of Consumers Prefer to Shop at Small Businesses** The argument for buying from and supporting a national brand was that they had better value and better service due to economies of scale to deliver that value. But what ended up happening is that smaller businesses took advantage of the tools and services of their time in order to provide equal if not greater value and service. Consumers are increasingly supporting local businesses, with 70% stating they prefer to shop at small businesses over large corporations. This trend reflects a growing appreciation for personalized service and community-oriented practices but also that they are getting great value as consumers. Let's be real, supporting community is important to many of us but we also want great bang for our buck. **Source**: [Business Journal Daily](https://businessjournaldaily.com/70-of-americans-shop-small/) ### **9. Freelancers Contribute $1.4 Trillion to the US Economy** You may not have thought about freelancers as small business owners but they are and the freelance economy is booming, with freelancers contributing an estimated $1.4 trillion to the US economy. This growth showcases the importance of solopreneurs in driving innovation and flexibility in the workforce. **Source:** [Freelancers Contribute $1.4 Trillion to the US Economy](https://www.upwork.com/research/freelance-forward-2022) ### **10. Small Businesses Are Key to Economic Growth** One of the most patriotic things you can do is to start your own small business. Small businesses contribute 44% of the US GDP, highlighting their crucial role in driving economic growth. Their innovation and flexibility allow them to respond quickly to market demands, fueling progress across various sectors and supporting the unique needs of their communities faster than the "big boys" can. **Source:** [Small Businesses Contribute 44% of the US GDP](https://advocacy.sba.gov/2019/01/30/small-businesses-generate-44-percent-of-u-s-economic-activity/#:~:text=A%20new%20report%20shows%20that,located%20in%20the%20United%20States.) These stats show just how much potential small businesses and solopreneurs have to succeed. With the right tools and support, there’s no limit to what you can achieve. At FloLoop, we’re here to help you launch and grow your business with fewer costs, higher efficiency, and expert guidance at every step. Ready to get started? Get Your Free [Website & Funnel Blueprint Session](https://floloop.com/schedule/free-website-funnel-blueprint-planning-session) by clicking the button in the navigation.