Starting a new business can be a thrilling adventure that often sparks multiple emotions including the apprehension that comes with delving into the unknown.
That’s because we are living in uncertain times where business owners are navigating uncharted waters.
If you’re ready to get your feet wet, the following top entrepreneur statistics going into 2023 will provide you with valuable information.
The statistics will give you insight into the reality of starting a new business.
These facts about entrepreneurship will show you the potential and the dangers of starting a business in today’s climate.
This data will show you the average capital and investment you need to start a business, how much time it will require of you, and show statistics on success and failure percentages.
We will also look at answering “how many entrepreneurs are there in the US?” as well as the world.
That said, there are few things in life that can produce the sense of satisfaction and accomplishment that having your own successful business can.
The following stats include data from 2013 to 2023 and forecasts to 2024 to help you determine if starting a new venture is feasible for you.
Key Entrepreneur Statistics in 2023
- There are 582 million entrepreneurs in the world.
- There are 31 million entrepreneurs in the US.
- There are approximately 8 million businesses owned by minorities in the US.
- The success rate data for entrepreneurs show that the pandemic created 56 American billionaires.
- 9% of all students worldwide want to be entrepreneurs after they get their degrees.
- The premature scaling of business is the cause of death for 70% of business startups.
- There are 71 women entrepreneurs for every 100 men entrepreneurs.
- 27% of entrepreneurs state that locating dependable contractors is their biggest challenge.
- 62% of all small businesses don’t hire employees.
- Approximately 55% of Americans think they are capable of starting and operating a business.
- Self-employed people enjoy higher career satisfaction, and the satisfaction grows with their career.
Detailed US Entrepreneur Statistics 2023
America is known for its entrepreneurs, visionaries, inventors, and innovators with diverse backgrounds from all over the globe.
How many entrepreneurs are there in the US?
America in actual fact has 31 million entrepreneurs!
After all, it’s a melting pot kind of country filled with rich cultures and business people.
The following entrepreneur statistics will address the US exclusively, so you know if America is where you want to be an entrepreneur.
1. The Success Rate Data for Entrepreneurs Shows that The Pandemic Created 56 American Billionaires.
So, while most of us were under quarantine or stuck indoors working from home, the pandemic produced 56 American billionaires.
You would think it would be the opposite with people losing their jobs and world economies under collapse, but many people seemed to have gotten wealthy from their endeavors.
You may already know that Elon Musk and Jeff Bezos got richer during the crisis, but since March 2020, they have been joined by the CEOs of DoorDash and AirBnB.
2. According to Statistics from 2020, Approximately 659 Billionaires Existed in The US.
Out of 659 billionaires in America, about 80% are self-made billionaires who didn’t inherit their wealth. Consequently, these self-made billionaires did have solid support from family and friends that boosted their efforts.
Of the 20% of billionaires who are not self-made, 19.4% operate within the investing and banking industries.
3. There Are Approximately 8 Million Businesses Owned by Minorities.
Minority-owned businesses are up in America, which is a good thing for entrepreneurial equality. Although, there are a few differences between minority and non-minority businesses in the US.
On average, non-minority business owners hire 10 people, while minority-owned businesses hire 8.
4. The United States Is the Best Country to Own Your Own Business with A Gei (Global Entrepreneurship Index) of 83.6.
The GEI, Global Entrepreneurship Index relates to the robustness of a nation’s environment for entrepreneurial endeavors. The numbers represent a business’s likelihood of success at home and across the world.
Currently, the US is number one with its high index rank. The index uses metrics to include the attitude, ability, and aspiration of the population of a country for entrepreneurship alongside of the social and economic infrastructures.
5. In The US Workforce, an Estimated 19.6% of Its Self-Employed Work in The Construction or Trades Industries.
The construction industry is alive and well among self-made entrepreneurs in America.
While 19% may seem like a small percentage, in numbers you’re looking at about 1.6 million self-employed entrepreneurs in the construction and trades industries.
The next most popular entrepreneurial industry is retail at 10.9% and then real estate at 10.7%. Consulting comes in fourth at 10.3% of self-employed people. Marketing is at the bottom of the list at 1.7% of self-employed people in the US.
6. Approximately 55% of Americans Think They Are Capable of Starting and Operating a Business.
More than half of the American people believe they have what it takes to start and operate a business.
This is representative of the optimism of the American people. 55% represents their national average, which is gathered from data coming from all the states and averaging them.
If you live in Miami, you will find that this number is 60%. In Detroit, it’s 57%. These cities are higher than the national average, which means that they have a lower number of people who fear failure.
7. The US National Average for The Fear of Failure in Business Is 33%.
Miami’s populace that represents the fear of failure in business is 27%. Detroit’s is 21%.
Therefore, being the opposite of confident about starting a business, these percentages tell us how many fear failing in entrepreneurship.
8. The Highest Growth Potential Going Into 2024 Is in The Healthcare and Social Assistance Industries,
Remember that predictions are just educated guesses based on historical data. Therefore, when the pandemic hit, many statistics across industries and topics were askew.
That said, it does make sense that healthcare and social assistance industries will experience the most growth in the next three or so years. The increase is expected to be around 21% by 2024.
Construction falls into the second highest at 13%. On the flipside, the IT industry is expected to experience a 1% drop.
The federal government job sector is expected to decline by 14% based on 2014 data going into 2024.
9. 62% of All Small Businesses Don’t Hire Employees.
More than half of America’s entrepreneurs either don’t need or don’t hire employees for whatever reasons. As for new entrepreneurs, it will take time to decide to hire employees due to need or the means to do so.
10% of small businesses have more than five employees. 28% hire between one and five employees
Worldwide Entrepreneur Statistics
We now have some essential American statistics to draw from, so now we are discussing entrepreneurial statistics across the globe.
Let’s see how many entrepreneurs exist in other nations, and their chances of success.
10. 9% of All Students Worldwide Want to Be Entrepreneurs After They Get Their Degrees.
The next generation of entrepreneurs are ready to jump into their own enterprises across data from 54n countries and more than 3,000 universities shows that 9% desire to start their own business after completing their higher education.
34.7% of that 9% want to achieve this goal within five years after graduation.
Consequently, Latin America and other developing countries show more interest in becoming entrepreneurs after college than any other country.
11. There Are 582 Million Entrepreneurs in The World.
While the world has 582 million people with an entrepreneurial spirit, statistics show that more entrepreneurs in a society doesn’t equal a better society than any other.
Besides assessments regarding how many new businesses are started, we should also be looking at how many reach maturity as an established business.
12. The Countries of Chad, Burundi, and Mauritania Are the Lowest in The GEI.
Out of the 137 countries that are ranked on the GEI, Chad, Burundi, and Mauritania fell at the bottom of the list. Burundi is ranked at 11.8, Mauritania at 10.9, and Chad at 9.
This means it may be challenging to start businesses in these countries, but it’s not impossible.
13. Switzerland Follows Closely Behind America at 80.4 GEI.
You know that America has a GEI of 83.6, but it’s followed closely by Switzerland with 80.4 GEI.
The next two are Canada with a 79.2 GEI, and the UK with a GEI of 77.8. Refer to stat number 4 to remind yourself of the GEI concept.
General Entrepreneur Statistics 2023
Now that we have covered the basics about the world’s entrepreneurs, we can look at the facts and entrepreneur stats in general.
The days when the older crowd owned the businesses are all but gone. Middle-aged men and women in suits are not the majority in entrepreneurship anymore.
Let’s see what the stats are now and going forward.
14. There Are 71 Women Entrepreneurs for Every 100 Men Entrepreneurs.
Where entrepreneurship was almost exclusively accepted as a male endeavor is now beginning to be more balanced with women entrepreneurs entering the scene.
Today, there are 71 women for every 100 men who are entrepreneurs based on US data. That means that about one-third more men are entrepreneurial than women.
The rate of women joining men in entrepreneurship grew by 10% of the female US population between 2015 and 2016. We compare that with the male statistic at 15%.
15. Approximately 30% of US Small Business Owners Have only A High School Diploma.
While it might be a good idea for gaining credibility in an industry, having a college degree is not a requirement to become an entrepreneur.
On one end of the spectrum, 30% of small business owners don’t have a college degree and at the other 4% of the small business owners in the US have their doctorate.
A wide variety of entrepreneurs didn’t finish their college education.
16. There Are Nearly 12 Million Women-Owned Small Businesses in The United States.
These approximately 12 million businesses owned by women generate about $1.7 trillion dollars annually, and have engaged in job creation to the tune of 9 million new employees.
Female-owned businesses have experienced a 114% growth over the past 20 years. Also, about 39% of all United States companies are owned by women.
17. An Estimated 64% of All American Entrepreneurs Are Caucasian.
While the numbers are growing amongst minorities, 64% of American entrepreneurs are caucasian. The percentage of African American business owners is 14%, while 8% of entrepreneurs are of Hispanic/Latino descent.
Entrepreneur stats show that between 2013 and 2016, higher levels of African Americans started new businesses.
Benefits and Challenges
The most interesting aspect that surrounds entrepreneurship is the excitement and allure of being your own boss.
The following statistics will discuss the challenges and benefits of starting your own business, potential revenues, and more.
18. Self-Employed People Enjoy Higher Career Satisfaction Over Other Forms of Entrepreneurship, and The Satisfaction Grows with Their Career.
Let’s preface this by saying that not all self-employed people own an official business. Some are freelancers and independent contractors without official business licenses.
Not every country or territory in a country requires a business license to operate a small business.
That said, let’s talk about the fact that self-employed individuals tend to be more satisfied with their careers.
The percentage of self-employed people who report being satisfied with their careers is 71%. In comparison, people working in conventional jobs who are satisfied are at 61%.
The 10% gap is believed to be due to the work-life balance factor.
19. The Premature Scaling of Business Is Reported as The Cause of Death for 70% of Business Startups.
Startup facts show that around 70% of 3200 startups surveyed failed due to premature business scaling.
This means they spent more money than necessary for growth than was needed before analyzing their place in the market.
This entrepreneur statistic should tell you to take care to make sure you have a piece of the market before planning a scaling strategy.
Also, it’s wise to note that it will take at least two to three times longer than you expect to secure your place in the market.
This means that it will take time to see solid revenues for your product ideas.
20. Most Entrepreneurs Say They Would Not Choose to Return to A Regular Job.
Once you have a taste of entrepreneurship, there is no going back to conventional jobs. Not that people don’t do that due to necessity, but the satisfaction in their work life is adversely affected.
A whopping 97% of self-employed people say they don’t want to go back to the traditional workplace. This is a benefit of entrepreneurship that shows people who do this, don’t usually regret it.
21. 27% of Entrepreneurs State that Locating Dependable Contractors Is Their Biggest Challenge.
Being an entrepreneur comes with more than your own skills. Sometimes, you need outside help to handle things like plumbing, networking, and other contracting jobs that could crop up for your business.
You now know that just more than one-third of business owners say they have problems finding reliable contractors.
More statistics show that 22% have issues with getting funds, and 23% find getting customers challenging.
Business owners statistics also reveal that 16% of entrepreneurs have difficulties with setting prices, and another 15% say that they have time management struggles.
There is also data that suggests that business owners struggle to keep their costs down.
Women-Owned Small Business Statistics
While we covered a few women-owned entrepreneur stats in the above material, we have more that might interest you.
22. The Top Five Industries of Women-Owned Businesses Are:
- Healthcare and social assistance with 189,351 firms employing 1,972,252 workers with a payroll of $64 billion.
- Food services and accommodations with 108,135 firms that have 1,522,579 employees with a payroll of $27.8 billion.
- Admin and support jobs employ 1,277,280 people in 71,019 firms with a combined payroll of $43.4 billion.
- Scientific, technical, and professional services with 191,230 firms that employ 989,099 people with a payroll of $60.4 billion.
- Retail trade features 130,203 firms that employ 871,369 people with a payroll of $25.8 billion.
23. Women-Owned Business by Demographic Groups and Percentages.
- 36.8% American Indian and Alaska native women-owned businesses.
- 34.7% African American or black women-owned businesses.
- 26.8% Asian women-owned businesses.
- 25.5% Hispanic women-owned businesses.
- 19.8% Caucasian/white women-owned businesses.
This group of female entrepreneurs are obviously driven in a positive way. Even with these numbers, women are still underrepresented in business ownership.
24. 42% of Women-Owned Companies Have Been in Operation for Less than 5 Years.
Just less than half of women entrepreneurs have been running their firms for five years or less.
Another 40% of women-owned businesses are 11 years old or older and employ 59% of workers, generating about 70.4% in revenue of which 65% goes to payroll.
According to 2018 entrepreneur stats, Hawaii consists of 24.7% of all firms in Hawaii. Virginia follows closely with 23.7% of all state firms.
The next eight states are Colorado (22%), Florida (22.1%), Maryland (21.8%), Alaska (21.6%), Georgia (21.1%), New Mexico (20.9%), Nevada (20.8%), and Oregon (20.6%).
What Is an Entrepreneur and What Do They Do?
Entrepreneurs are people who start new businesses, boost the economy with innovative goods, ideas, services, or business processes.
What Are Five Advantages of Being an Entrepreneur?
The top five advantages that make starting a new venture appealing include:
You get to control your schedule and time.
– All failures and successes are yours.
– Freedom to run your business as you see fit according to your life and ideas.
– You get to write your own paycheck (be realistic).
– You get to do what your passions lead you to do.
Essentially, this comes down to having freedom to live life on your terms without answering to a boss because you are the boss.
What’s the Failure Rate of Entrepreneurship?
The failure rate of entrepreneurship will vary since it’s dependent upon your country and industry.
For US businesses, 80% is the first-year survival rate. As the years pass, the numbers drop.
70% of businesses will survive a second year, 50% a fifth year, and 30% will make it to their tenth year, according to entrepreneur data.
These numbers shouldn’t stop you from following your passion. If anything, they should encourage you to beat the odds.
Local economies thrive on small businesses, but this also snowballs to the state, national, and global levels in some instances.
This means that entrepreneurs are the key to building and maintaining a solid and strong economy.
Small business owners create jobs, enrich their communities and nations, and provide essential goods and services no matter where they are.
These brave and strong entrepreneurs were the hardest hit during the pandemic, yet many were able to survive and continue to drive local economies.
The stats we gathered and shared with you here are intended to provide you with information about entrepreneurship and its challenges and benefits.
One thing you want to do is go into any new business endeavor with realistic expectations and a plan that reflects that.
We hope these entrepreneur statistics for 2023 have inspired you to go after your passion and to follow your dream of becoming a successful entrepreneur no matter where you live.
You can take control of your time, live the life that you are meant to live, and survive any obstacles that come your way.
You will need a viable business plan and contingency strategies to get you through virtually any national or global crisis, put that on your list of things to consider when starting your own business.