The highest rate of job resignations in history has happened during the past 18 months. Thousands of those corporate refugees have invested in franchises or started their own small businesses.
Many corporate escapees turned business owners are emerging with a sense of optimism. In fact, many are saying that they should have quit the corporate rate race years ago.
Because we are taught to go to school, get a job and fall into line, taking control of your life and claiming your independence is scary. But with risk comes grand rewards. Not just monetarily but in lifestyle dividends. In the end, it’s freedom and flexibility that we all want. There is no better time than now to take control and build the lifestyle of your dreams. Please don’t misunderstand me. Owning a business is challenging. However, it has never been easier to start and operate a business because of technology. Remarkable opportunities continue to evolve and have transformed how franchise owners buy, sell, and market products. Running a business has never been more fun, from social media to customer-facing apps to sending a message to a customer’s phone as they walk past your location.
Here are some key statistics to know about the state of business ownership in 2022 and going into 2023 (the links in the bullets below lead to the source of the data point):
- Entrepreneurship rates have been trending upwards in the United States for the past 19 years.
- Nearly 5.4 million new businesses were registered in 2021. That's a 23% increase YOY.
- Dissatisfied with corporate America is the top motivation for someone to open their own business in 2022.
- 47% of people became entrepreneurs because they wanted to be their own boss.
- Small businesses in the U.S. employ 60.6 million people.
- 74% of companies actively invest in social media marketing.
- Nearly 64% of companies actively invest time in Search Engine Optimization (SEO)
- 78% of small business owners say their businesses are profitable.
- Nearly 543,000 new businesses are created in the U.S. each month.
- More than54% of entrepreneurs in the U.S. have a bachelor’s degree or higher, while only 2% have a doctorate degree.
- 22% of entrepreneurs in the U.S. start a business because they're not yet ready to retire.
- 31% of entrepreneurs in the U.S. start a business because they want to pursue a passion.
- 54% of entrepreneurs cite communication as the most important skill to have, followed by problem solving (53%) and time management (48%).
- Serial entrepreneurs run up to three businesses throughout their lives.
- Weekly business applications have increased by 31% since 2019.
Entrepreneur Demographics
- 5.2 million small business owners in the U.S. identify as people of color.
- As of 2020, there are approximately 274 million women entrepreneurs.
- Women make up 46% of black entrepreneurs.
- 5.9 million entrepreneurs are under the age of 35.
- 6% of American small businesses are veteran owned.
- 6.3 million American small business owners were born outside the US.
- California had the highest number of entrepreneurs in the US in 2020.
- 29.3% of businesses in the U.S. are owned by people of color.
- 92% of entrepreneurs don’t regret launching their businesses.
- 30% of entrepreneurs are serial entrepreneurs who have founded or run more than one business.
- Half of the adults surveyed chose to start a business due to having a hard time finding well-paying jobs.
- 46% of aspiring entrepreneurs are Gen-X'ers.
- 45% of aspiring entrepreneurs are boomers.
Financial Statistics
- 40% of crowdfunding campaigns are raising funds for business and entrepreneurship ventures.
- The second most common form of business funding is from 401K funding.
- 13% of entrepreneurs use rollovers as business startups to finance their business.
- The biggest challenge for small business owners and aspiring entrepreneurs is the lack of cash flow.
- 37% of small business owners rely on cash to fund their businesses.
- 10% of small businesses owners and aspiring entrepreneurs get financing from friends and family.
- The top three challenges facing aspiring entrepreneurs are insufficient capital or cash flow, recruiting employees, and marketing.
- The average CEO makes an annual salary of $156,128.
- The average base salary of small business owners is $61,455 not including profits.
How Entrepreneurs Work
- 82% of small businesses have made workplace changes in response to the COVID-19 pandemic.
- The overwhelming majority of business owners (74%) self-reported as either somewhat happy or very happy.
- of small businesses offer employee benefits.
- 69% of American entrepreneurs start their business at home.
- For social entrepreneurs, the most critical action to transform work is to build an organizational culture that promotes growth (45%).
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