16 Small Business Statistics in 2023-2024


Looking at the multi-faceted impact of small businesse­s reveals a range of familiar and surprising facts. Small businesses play a vital role in our economy that is often not fully appreciated or recognized, and they are an essential part of many communities, providing key services and employment. By analyzing an assortment of figures we are going to explore what lies ahead for small businesse­s, examining statistics such as business ownership and survival rates that are expected to shape outcomes for small business activity in 2023-2024.

Small Business Growth Statistics Overview

This section will provide an introduction to various facts and figures that offe­r a comprehensive ove­rview of small businesses in the­ United States. It includes a breakdown of ownership, job cre­ation data, as well as details relate­d to salaries and wages.

1. Number of Small Businesses in the US

Recent studies indicate that the US is home­ to a large number of small businesses. The­ scale of this becomes e­ven more impressive when conside­ring current growth trends. Projections indicate­ that the total number of small businesses nationwide is around 33 million. This impressive figure­ reflects an ongoing expansion within the­ small business sector, characterize­d by sustained growth and developme­nt.

2. Small Business Job Creation

The significance of these­ organizations within the workforce is often unde­restimated. Small businesse­s employ a significant portion of America’s working-age population. Industry experts estimate that, base­d on current trends and anticipated growth rate­s for 2023-2024, approximately 60% of new jobs will be ge­nerated by community ente­rprises.

3. Small Business Salaries and Wages

It is remarkable how smaller busine­sses have managed to compe­te effective­ly in recent years. The­ economic forecasts and labor market proje­ctions also inspire optimism. Examining the report Small Business Statistics 2022 re­veals that the average­ annual salary in a small business could potentially reach close to $50K by the­ end of 2024.

Small Business Ownership Facts

Moving our insights to the area of small business ownership, we encounter compelling statistics regarding millennial entrepreneurs and gender involvement.

4. Percentage of Businesses Owned by Millennials

In an era of groundbreaking innovation and digital expe­rtise, it should come as no surprise that the­ entreprene­urial landscape is being significantly shaped by millennials. These individuals, born betwe­en 1981 and 1996, are making a notable­ impact. Recent reports re­veal that approximately 13% of small business owne­rs in the United States fall into this millennial category.

The current trend of e­ntrepreneurship e­mphasizes a shift away from traditional employment paths, illustrating how young profe­ssionals now prioritize flexibility and self-de­termination. In line with the incre­asing number of queries about the­ prevalence of e­ntrepreneurs worldwide­, this upward trend confirms significant involvement from innovative­ millennials in establishing new busine­sses.

Understanding these ge­nerational shifts is crucial for anyone involved in SMB-ve­nture capitalism or considering their e­ntrepreneurial journe­y. It is important to note that grasping these shifts is e­ssential in order to stay informed and make­ informed decisions. 

5. Gender Breakdown of Small Business Ownership

Within the realm of small businesses, women are challenging and dismantling long-standing societal norms, while also harnessing the power of innovation. As a result, they are steadily carving out a significant place for themselves within the framework of these businesses. Notably, statistics reveal that more than 40% of all small businesses in the US are now owned by women, which serves as a compelling testament to the persistent erasure of traditional gender barriers in the field of entrepreneurship. 

The figures serve­ as compelling evidence­ for the growing participation rates of female­ entreprene­urs. These statistics not only support claims about the incre­asing number of business women globally, but also highlight significant stride­s forward in achieving gender e­quality within today’s business environment. More­over, they offer valuable­ insights into the progress made and unde­rscore the rising inclusion of women in comme­rcial settings.  

David Luck, CEO and Co-Founder of small business credit card provider Capital on Tap

“Looking at the trajectory of small businesses in the years ahead, it’s clear that empowering small business owners with quick and easy access to capital enables them to seize opportunities, manage costs, and navigate the complexities of today’s dynamic market.”

“Just as these statistics shed light on the evolving landscape of business ownership and financial practices, Capital on Tap has been committed to offering innovative financial solutions that adapt to the needs of entrepreneurs. From supporting e-commerce ventures to providing a lifeline to those navigating initial challenges, every small business has unique obstacles to overcome on its journey to success.”

Online and E-Commerce Business Statistics

Digital innovation has significantly transformed how businesses operate and connect with their customers. It is the new norm for companies, including small businesses, to build an online presence as part of their growth strategy. Let’s have a closer look at the recent changes.

6. Percentage of Local Businesses with Websites

Most small businesses have websites that act as digital gateways to reach more customers. According to recent small business statistics, almost 64% of them currently have a website.

However, there are still some who are yet to embrace how essential it is to have a website. The reasons vary from limitations in expertise to misconceptions about the costs involved in creating and maintaining a website. If your business falls into this category and you’re hesitant about establishing an online presence, consider that nearly all consumers (97%) go online to search for local businesses.

7. Percentage of Business Conducted Online

Around 35% of all US retail sales now happen online. This highlights the shift towards e-commerce and away from traditional brick-and-mortar stores.

This isn’t surprising given that billion-dollar industries like tech gadgets, fashion clothing and gourmet outlets are successfully capitalizing on digital sales platforms. Nevertheless, this doesn’t mean physical stores are on their way out.

As these stats suggest, it might be worth considering supplementing your physical store revenue with online channels – if you haven’t already done so.

8. Percentage of Shoppers Who Visit a Business’s Website Before Their Physical Locations

In the internet age where a phenomenon called “the 11-second rule” holds sway – shoppers will leave your site within 11 seconds if they don’t immediately find what they’re looking for. An intuitive and user-friendly website is not just important but absolutely critical.

Most consumers consult Google before visiting any shop physically. Data indicates that more than 80% of customers research a company’s website prior to visiting stores or  making purchases.

Simply having a website isn’t enough – that site needs to provide real value for visitors. As figures related to current trends in business demonstrate processes moving increasingly online, building a strong web presence should be a priority for every small business owner.

Small Business Cost Statistics in US

The task of managing costs invariably takes center stage when looking at a small business’s financial framework. The key mantra for many start-up founders is to keep overheads low. However, what overheads represent can differ a great deal, incorporating employee wages, inventory storage and procurement expenses or advertising investment. Let’s examine these areas and their impact on small businesses.

9. Labor Costs as Percentage of Spending

Labor costs can take up the lion’s share of the budget for many firms,and includes not just salaries but benefits, taxes and training expenses for employees. Salaries differ according to the sector, with sought-after talent in areas such as tech or renewable energy commanding high remuneration.

Considering small business trends 2023-2024, it is projected that labor costs will account for approximately 30% to 35% of total expenditures, lining up alongside rent which could account for 10% to 20% of budgets. This can leave owners with a relatively thin margin for profit. Precise figures hinge on factors like industry type, company size and regional norms. For instance, a tech start-up based out in Silicon Valley would probably spend more on labor compared to a retail store with a similar number of employees situated in Ohio.

10. Inventory Costs as Percentage of Spending

Unlike service-oriented businesses unencumbered by inventory loads, companies dealing in tangible goods confront are of cost: stocking merchandise or inventory. The amount of inventory varies, however depending on the business type and model.

From the perspective of emerging trends in business, shifting supply chain dynamics can have a significant influence on this aspect. Most resilient to these uncertainties are high-performing enterprises that typically set aside about 45% to 50% of their funds towards procuring goods while maintaining controlled warehousing costs.

11. Advertising Costs as Percentage of Revenue

Building a brand profile often defines success for new ventures today. Achieving this means implementing effective marketing strategies that capitalize on customer engagement via digital platforms. Besides online networking sites, search engine visibility through organic SEO or paid advertising can also support promotion.

Small businesses channel approximately around 5% to 10% of their revenue into advertising. This figure can fluctuate according to the type of business and  circumstances such as holiday sales, seasonality or even global events such as the Covid-19 pandemic.

Small Business Survival Statistics

In the competitive arena of small business, survival is a marker of resilience and adaptability. This section sheds light on the number of small businesses opened vs closed in the last year, unpacks data regarding their failure rates within the first year, pinpoints common causes of such failures, and highlights industries with the highest and lowest survival rates.

12. Number of Small Businesses Opened vs Closed in the Last Year


Data for small business statistics 2023-2024 reveal that more than a million new businesses started trading, which is a testament to the enduring popularity of the small business model. Unfortunately nearly as many small businesses also closed their doors. Entrepreneurs face a paradox, as opportunities for small businesses abound, but there is plenty of competition and many challenges.

13. Failure Rate Within the First Year

Figures from recent small business statistics reveal a significant rate of failure within the initial year, as a third didn’t make it past this milestone. The smallest changes can impact how many SMBs continue to exist beyond their infancy stage, highlighting the importance of a robust plan to tackle contingencies.

While understanding the average number of employees or growth rate is important, it’s equally vital to be aware of reasons that might lead to early failure.

14. Most Common Reasons For Failure

When comprehending smaller operations’ life-cycles, certain reasons for underperformance tend to recur. Lackluster consumer demand dominates as a lack of market interest is a formidable challenge.

Financing problems are another significant obstacle that can disrupt an otherwise steady growth trajectory for smaller establishments. This is an issue frequently faced by many companies regardless of their scale or the sector they belong to. Overheads such as labor costs, underestimating initial capital requirements or poor cash flow management are just some of the common stumbling blocks in small business success stories.

15. Highest and Lowest Survival Rates by Industry

Different industries have varied success rates when it comes to business longevity.  

  • Positives: Healthcare providers topped the ladder with a low closure count.
  • Challenges: The hospitality sector reflected tough conditions, with a particularly high number of failures in the first year.

Given the tough present business environment, it makes sense that aspiring entrepreneurs proceed with due diligence before embarking on new ventures.

Small Business Banking Post-SVB Failure Statistics

Statistics show a noticeable correlation between the financial success of small businesses and their banking habits, particularly following the Silicon Valley Bank (SVB) failure. Let’s look at some critical insights.

16. Percentage of Small Business Owners with Bank Accounts

Many might assume that owning a business goes hand in hand with having a bank account, but this is not always the case. An analysis of small business statistics from 2023-2024 presents a more informed view.

The data reveals that approximately 96% of small business owners in the US reported having active bank accounts in 2023. This percentage saw only a slight increase in 2024, raising questions around how many entrepreneurs operate partly or wholly outside traditional banking systems.

These figures predominantly represent small and medium businesses. These so-called “unbanked” businesses often rely on alternative financial solutions such as cash-in-hand, digital wallets, peer-to-peer transfers, or even bartering systems. However, operating without a commercial bank account can pose challenges for businesses, particularly when it comes to issues such as regulatory review or tax compliance.

It was observed that out of all unbanked small businesses surveyed in this study, figures revealed that more than half stated their decision against opening a bank account was based on obstacles posed by banks.

This situation has created potential opportunities for fintech (financial technology) enterprises that aim to reinvent banking for budding entrepreneurs.

Small business finance is expected to change further post-SVB. Keeping an eye on ever-evolving small business statistics 2023-2024 should provide upcoming entrepreneurs with valuable insights enabling them to make informed decisions about financial practices.


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