As a small business owner, staying up-to-date on the latest small business statistics is crucial. Understanding the trends and patterns within the small business landscape can help inform your business decisions and strategy. 

In this blog post, we’ve compiled a list of 13 small business statistics covering various topics such as growth, profitability, customer satisfaction, and more. These data points provide valuable insights into the state of small businesses and can help you better understand your industry and target market. Read on to learn more about the current state of small businesses and how these statistics can impact your business.

The Top Small Business Statistics You Need to Know in 2023

1. Funding

• 41% of small businesses use personal savings as their primary funding source. (Source: The Balance)

Impact: This means that many small businesses rely on their resources to finance their operations, which can strain their finances and potentially limit their ability to invest in growth.

• Only 24% of small businesses that applied for a loan in 2018 were approved. (Source: Biz2Credit)

Impact: This low approval rate can make it difficult for small businesses to access the capital they need to grow and operate effectively, potentially leading to financial instability.

• The average small business loan amount in 2018 was $663,000. (Source: Biz2Credit)

Impact: This high average loan amount can be difficult for small businesses to repay, especially if they struggle to generate profits or experience cash flow issues.

• Small businesses in rural areas are less likely to receive funding than those in urban areas. (Source: Federal Reserve Bank of Kansas City)

Impact: This can make it harder for small businesses in rural areas to access the resources they need to thrive, potentially limiting their ability to contribute to the local economy.

• Small businesses owned by minorities often face more challenges in securing funding. (Source: Forbes)

Impact: This can make it harder for minority-owned small businesses to get the capital they need to grow and succeed, leading to a lack of representation in the business world.

2. Marketing

• 50% of small businesses do not have a website. (Source: Clutch)

Impact: Without a website, small businesses may struggle to reach and engage with potential customers, leading to missed opportunities for growth.

• 81% of consumers conduct online research before making a purchase. (Source: Forbes)

Impact: This means that having a strong online presence is crucial for small businesses to attract and retain customers, as consumers increasingly turn to the internet for information about products and services.

• The average small business spends $1,200 per month on marketing. (Source: Constant Contact)

Impact: This can be a significant investment for small businesses, especially if they struggle to generate profits or have limited resources.

• Email marketing has the highest return on investment of any marketing channel, with an average ROI of $38 for every $1 spent. (Source: Campaign Monitor)

Impact: This makes email marketing an effective and cost-efficient way for small businesses to reach and engage with their audience.

• Social media is the most popular marketing channel for small businesses, with 61% using it to promote their products or services. (Source: Clutch)

Impact: Social media provides small businesses with a cost-effective way to reach and interact with their target audience, making it an important part of their marketing strategy.

3. Sales

• On average, small businesses in the U.S. generate $135,000 in annual sales. (Source: The Balance)

Impact: The number of sales a small business generates can vary significantly based on the industry and location.

• The retail industry tends to have the highest small business sales, with an average of $250,000 per year. (Source: The Balance)

Impact: This demonstrates the significance of the retail sector for small businesses in generating revenue.

• Small businesses make up 99.7% of all employer firms in the U.S. (Source: SBA)

Impact: This shows the important role small businesses play in driving employment and economic growth in the country.

• Service industries tend to have the highest employment rate among small businesses, with 70.6% employing at least one person. (Source: SBA)

Impact: This highlights the importance of the service industry for small businesses in terms of providing job opportunities.

• The average small business has 7 employees. (Source: SBA)

Impact: A small business’s workforce size can impact its capacity and efficiency in production and operations.

4. Growth

• The average small business grows at a rate of 7% per year. (Source: Forbes)

Impact: This growth rate can vary greatly depending on the industry and location, with some small businesses experiencing higher or lower growth rates.

• Small businesses investing in marketing and sales tend to experience faster growth. (Source: Forbes)

Impact: This highlights the importance of these efforts for small businesses looking to expand and increase their revenue.

• 70% of small businesses that hire employees experience faster growth. (Source: Forbes)

Impact: This shows that adding staff can help small businesses increase their capacity and efficiency, leading to faster growth.

• Small businesses that offer unique products or services are more likely to experience rapid growth. (Source: Forbes)

Impact: This suggests that differentiating oneself in the market can be key for small businesses looking to stand out and drive growth.

• Small businesses with a strong online presence tend to experience faster growth. (Source: Forbes)

Impact: This emphasizes the importance of having a strong online presence for small businesses looking to attract and retain customers, which can lead to faster growth.

5. Employment

• There are 30.2 million small businesses in the United States. (Source: SBA)

Impact: This shows the significant role that small businesses play in the U.S. economy, as they make up a large portion of the employer landscape.

• Small businesses employ 47.5% of the private workforce. (Source: SBA)

Impact: Small businesses are a major source of employment in the U.S., providing many of the population with job opportunities.

• The average small business has 7 employees. (Source: SBA)

Impact: This suggests that most small businesses are relatively small in employee size, which can impact their capacity and efficiency.

• A single person owns most small businesses (70%). (Source: SBA)

Impact: This highlights the importance of solo entrepreneurship in the small business landscape, as many businesses are owned and operated by a single individual.

• Small businesses in the service industry have the highest employment rate, with 70.6% of small businesses employing at least one person. (Source: SBA)

Impact: This suggests that the service industry is a major source of employment for small businesses, offering job opportunities for many of the population.

6. Customer Satisfaction

• 80% of small businesses believe customer satisfaction is important to their success. (Source: Clutch)

Impact: This shows that small businesses recognize the importance of meeting the needs and expectations of their customers, as it can drive business success.

• 90% of small businesses said they would prioritize customer satisfaction over profit. (Source: Clutch)

Impact: This highlights the importance of customer satisfaction for small businesses, as they prioritize it over financial gain.

• 80% of small businesses said they go above and beyond to ensure customer satisfaction. (Source: Clutch)

Impact: This suggests that small businesses are willing to go the extra mile to meet the needs of their customers and ensure a positive experience.

• Most small businesses (70%) believe that customer satisfaction is the most important factor in driving repeat business. (Source: Clutch)

Impact: This shows that small businesses recognize the importance of customer satisfaction in building long-term relationships and driving repeat business.

• 60% of small businesses said they use customer feedback to improve their products or services. (Source: Clutch)

Impact: This suggests that small businesses are open to and proactive in using customer feedback to continuously improve their offerings, which can lead to increased customer satisfaction.

7. Productivity

• The average small business owner works 50 hours weekly. (Source: The Balance)

Impact: This high level of work can lead to burnout and decrease productivity, making it important for small business owners to find ways to manage their time effectively.

• 70% of small business owners said they struggle with time management. (Source: The Balance)

Impact: This suggests that time management is a common challenge for small business owners, impacting their productivity and efficiency.

• Small businesses that use project management tools report a 50% increase in productivity. (Source: The Balance)

Impact: This highlights the importance of using tools and resources to help small businesses manage their workload and increase productivity.

• Small businesses that use cloud-based tools and software report a 20% increase in productivity. (Source: The Balance)

Impact: This suggests that cloud-based tools can help small businesses streamline their operations and increase efficiency.

• Small businesses with a clear vision and mission statement report a 25% increase in productivity. (Source: The Balance)

Impact: This shows that having a clear direction and purpose can help small businesses stay focused and achieve their goals, leading to increased productivity.

8. eCommerce

• 71% of small businesses now sell online. (Source: Small Business Trends)

Impact: This shows the increasing importance of e-commerce for small businesses as they seek to expand their reach and tap into the growing online market.

• The average small business generates $3,000 in annual e-commerce sales. (Source: Small Business Trends)

Impact: This amount can vary greatly depending on the industry and location, with some small businesses generating significantly more or less in e-commerce sales.

• The retail industry generates the smallest business e-commerce sales, with an average of $10,000 per year. (Source: Small Business Trends)

Impact: This highlights the importance of e-commerce for small businesses in the retail industry, as it offers a significant source of revenue for those operating in the space.

• Small businesses that offer free shipping and returns experience a 20% increase in e-commerce sales. (Source: Small Business Trends)

Impact: This suggests that offering free shipping and returns can be key in driving small business e-commerce sales.

• Small businesses that offer multiple payment options experience a 25% increase in e-commerce sales. (Source: Small Business Trends)

Impact: This shows that offering multiple payment options can make it easier for customers to complete purchases, leading to increased e-commerce sales for small businesses.

9. Profitability

• The average small business generates a profit margin of 6%. (Source: Forbes)

Impact: This can vary greatly depending on the industry and location, with some small businesses experiencing higher or lower profit margins.

• Small businesses in the manufacturing industry have the highest profit margin, with an average of 10%. (Source: Forbes)

Impact: This suggests that the manufacturing industry is a more profitable sector for small businesses, as they can generate higher margins.

• Small businesses that have been in operation for at least 5 years are more likely to be profitable. (Source: Forbes)

Impact: This highlights the importance of longevity for small businesses, as they may need time to establish themselves and generate profits.

• Small businesses that invest in marketing and sales efforts are more likely to be profitable. (Source: Forbes)

Impact: This suggests that investing in marketing and sales can drive profitability for small businesses, as it can help attract and retain customers.

• Small businesses that offer high-quality products or services are more likely to be profitable. (Source: Forbes)

Impact: This shows that offering high-quality products or services can lead to customer loyalty and repeat business, which can drive profitability for small businesses.

10. Employee Retention

• The average small business has a staff turnover rate of 15%. (Source: Forbes)

Impact: This can vary greatly depending on the industry and location, with some small businesses experiencing higher or lower staff turnover rates.

• Small businesses that offer competitive salaries and benefits have a lower staff turnover rate. (Source: Forbes)

Impact: This suggests that offering competitive compensation can help small businesses attract and retain employees, leading to lower turnover rates.

• Small businesses that offer opportunities for growth and development have a lower staff turnover rate. (Source: Forbes)

Impact: This shows that offering opportunities for employee development can help small businesses retain their top talent, leading to lower turnover rates.

• Small businesses with a positive company culture have a lower staff turnover rate. (Source: Forbes)

Impact: This suggests that creating a positive work environment can help small businesses retain employees and decrease turnover rates.

• Small businesses that invest in employee training have a lower staff turnover rate. (Source: Forbes)

Impact: This highlights the importance of investing in employee development for small businesses, as it can help retain employees and reduce turnover rates.

11. Business Ownership

• Most small business owners (78%) are male. (Source: SBA)

Impact: This can lead to a lack of representation and diversity in the small business landscape, as most business owners are male.

• The average small business owner is aged 50 or older. (Source: SBA)

Impact: This suggests that small business owners may be more common among those more experienced and established in their careers.

• The majority of small business owners (57%) have a bachelor’s degree. (Source: SBA)

Impact: This suggests that higher education may be a factor in starting a small business, as many business owners have a bachelor’s degree.

• The majority of small business owners (60%) started their businesses out of necessity. (Source: SBA)

Impact: This suggests that many small business owners may have been driven to start their businesses due to a lack of employment opportunities or other factors.

• The majority of small business owners (70%) are the sole owner of their businesses. (Source: SBA)

Impact: This highlights the importance of solo entrepreneurship in the small business landscape, as many businesses are owned and operated by a single individual.

12. Business Survival

• 50% of small businesses survive 5 years or more. (Source: Forbes)

Impact: This suggests that many small businesses can sustain their operations and achieve longevity.

• The retail industry has the highest small business survival rate, with 70% of businesses surviving 5 years or more. (Source: Forbes)

Impact: This suggests that the retail industry may be a more stable and profitable sector for small businesses, leading to higher survival rates.

• Small businesses that can adapt to change are more likely to survive. (Source: Forbes)

Impact: This highlights the importance of flexibility and adaptability for small businesses looking to sustain their operations and succeed long-term.

• Small businesses with a strong online presence are more likely to survive. (Source: Forbes)

Impact: This suggests that having a strong online presence can help small businesses reach and engage with a wider audience, leading to increased chances of survival.

• Small businesses with diverse customer bases are more likely to survive. (Source: Forbes)

Impact: This shows that having a diverse customer base can help small businesses mitigate the impact of losing one particular customer, leading to increased chances of survival.

13. Customer Demographics

• 65% of small business customers are aged 35-54. (Source: Clutch)

Impact: This suggests that small businesses may need to focus their marketing efforts on this age group to reach most customers.

• The majority of small business customers (62%) have a household income of $50,000 or more. (Source: Clutch)

Impact: This highlights the importance of targeting higher-income customers for small businesses, as they make up a significant portion of their customer base.

• Small business customers are evenly split between male (48%) and female (52%). (Source: Clutch)

Impact: This suggests that small businesses need to focus on marketing to both males and females to reach their full customer base.

• The majority of small business customers (72%) live in urban areas. (Source: Clutch)

Impact: This highlights the importance of targeting urban customers for small businesses, as they make up a significant portion of their customer base.

• The majority of small business customers (60%) are aged 25-34. (Source: Clutch)

Impact: This suggests that small businesses may need to focus their marketing efforts on this age group to reach a significant portion of their customers.

In conclusion,

Small businesses play a significant economic role, providing employment and driving innovation. Understanding the current trends and patterns within the small business landscape can help inform business decisions and strategies. 

These small business statistics provided in this blog post offer valuable insights into the state of small businesses, covering topics such as growth, profitability, customer satisfaction, and more. By staying up-to-date on these statistics, small business owners can better understand their industry and target market and make informed decisions to drive their business forward.