From simple trading of goods between tribes to today’s proliferation of trillion-dollar enterprises, people have an innate instinct to do business.
During the pandemic, the landscape of entrepreneurship changed.
Those years witnessed record-breaking online sales, changing the way buyers interact with sellers.
Let’s check in to the exciting world of entrepreneurship, peeping through the latest entrepreneur statistics in 2023.
- There are 582 million entrepreneurs in the world.
- There are 31 million entrepreneurs in the US.
- 5.2 million new businesses emerged in the market in 2022.
- Almost 61% of entrepreneurs revealed their dissatisfaction with their corporate life, which pushed them to build their own businesses.
- 74% of businesses have embraced the power of social media and are actively investing resources for impactful social media marketing strategies.
- Retail and Food industries are two of the most common options for small business owners.
- 54% of entrepreneurs recognize the critical role of critical communication in achieving business goals.
Top Entrepreneur Statistics of 2023
1. As of 2023, the Global Entrepreneurial Community Has Reached an Astounding 582 Million People
The latest statistics show 582 million people are now categorized as ‘entrepreneurs’ all over the world, the entrepreneurial landscape continues to expand and diversify, testifying to the limitless potential that resides within the human spirit coming up with innovative concepts.
Despite the unexpected entrance of the Covid 19 pandemic into the scene, HubSpot found that more than 50% of people worldwide remain optimistic about the future of business.
2. The Entrepreneurial Spirit Took Center Stage in 2022, as 5.2 Million New Businesses Emerged that Year
2022 welcomed an extraordinary surge in entrepreneurial activity, defying expectations and setting a new record for business creation.
An estimated 5.2 million new businesses emerged during the year, representing a remarkable 42% increase from pre-pandemic levels, signaling the unwavering entrepreneurial spirit that drives economic progress and shapes the world of business today.
3. There Are 31 Million Entrepreneurs Residing in The United States
The United States is tagged as one of the most entrepreneurial countries in the world.
In fact, the country ranked first worldwide in this category, as shown by its $25.5 trillion gross domestic product.
The impact of entrepreneurs on the US economy is boundless.
They are responsible for creating a significant portion of new jobs, driving economic growth, and fueling innovation.
Here are the world’s most entrepreneurial countries in terms of GDP in 2022 according to US News:
- United States – the country’s gross domestic product stood at $25.5 trillion during the year
- China – the country’s gross domestic product stood at $18.0 trillion during the year
- Germany – the country’s gross domestic product stood at $4.07 trillion during the year
- United Kingdom – the country’s gross domestic product stood at $3.07 trillion during the year
- Singapore – the country’s gross domestic product stood at $467 billion during the year
- Japan – the country’s gross domestic product stood at $4.23 trillion during the year
- United Arab Emirates – the country’s gross domestic product stood at $508 billion during the year
- Canada – the country’s gross domestic product stood at $2.14 trillion during the year
- South Korea – the country’s gross domestic product stood at $1.64 trillion during the year
- Australia – the country’s gross domestic product stood at $1.68 billion during the year
4. 60.87% of Entrepreneurs Shifted to Entrepreneurship Due to Dissatisfaction with Corporate America.
In a quest for greater fulfillment and a desire to break away from the confines of corporate America, 60.87% of individuals admitted to embarking on their personal entrepreneurial journeys, seeking to create businesses aligned with their values and aspirations in life.
Many say that although entrepreneurship may be challenging, it provides the flexibility to structure work around personal priorities, promoting a healthier and more balanced lifestyle.
On the other hand, flexibility is not always true, at least for the majority of small businesses.
84% of small business owners say they are working more than 40 hours per week which is the average time clocked in for average salary men and women.
Moreover, 19% of entrepreneurs admitted to working more than 60 hours per week.
5. In the United States, Small Businesses Employ a Staggering 61.7 Million People
Small businesses play a vital role in the economic engine of the United States, employing a whopping 61.7 million individuals, representing a substantial 46.4% of the nation’s working population.
The United States boasts a vast network of small businesses, with over 33 million active entities.
This extensive presence provides a multitude of employment opportunities for individuals across diverse industries and skill levels.
6. Over Half of Adults Worldwide Are Turning to Entrepreneurship.
The global landscape of employment is undergoing a significant transformation, with traditional job opportunities becoming increasingly scarce.
Over half or almost 55% of adults globally are now considering or actively pursuing entrepreneurial ventures, driven by the desire to create their own opportunities and achieve their economic goals.
On the other hand, 54% of small business owners say that the after-effects of the pandemic still run over their operations.
7. Aside from Wanting to Leave the Corporate World, Here Are 5 Other Reasons Why People Started Their Entrepreneurial Journey:
- 47.64% of entrepreneurs choose the entrepreneurial path in pursuit of self-governance and freedom to navigate their own professional career.
- 31% of people became entrepreneurs to pursue their passion while earning money to support their daily needs.
- 23.44% of recently unemployed individuals turn to entrepreneurship to support themselves or their families.
- 21.36% of entrepreneurs started their business because an opportunity presented itself to them.
- Lastly, around 20% of entrepreneurs revealed that they started their entrepreneurial journey because they are not yet ready to retire.
8. More than Half or 58% of Entrepreneurs Have Transitioned from The Corporate World to The Entrepreneurial Landscape
Corporate career paths may offer limited opportunities for growth and advancement, leading to feelings of stagnation and unfulfilled potential.
That’s why it is no surprise that more than half of entrepreneurs now are former corporate workers who said goodbye to fixed schedules and doing the same thing almost everyday of their lives.
It’s worth the risk for many though, as 78% of small business owners turning to profit last year.
9. 55% of Adults in The United States Have Embarked on The Entrepreneurial Journey at Least Once in Their Lifetime
The widespread entrepreneurial spirit in the US is deeply rooted in a cultural value system that celebrates innovation, encourages risk-taking, and fosters the pursuit of uncharted entrepreneurial endeavors.
Over half of adults residing in the United States have tried building their own business at least once in their lives.
The remarkable growth in entrepreneurial aspirations indicates a heightened interest in pursuing the path of business ownership, suggesting a potential surge in the creation of new enterprises.
The majority of these said they have no plans to go back to their corporate jobs after starting their own business.
10. Soaring Inflation Has Emerged as The Most Pressing Challenge Confronting Small Business Owners Across the United States in 2023.
The United States is currently grappling with a surge in inflation, the highest over the past decades.
Last month, the nation’s consumer price index, an indication of inflation health, hiked 3.2% year-on-year.
With this, 29% of small business owners revealed that inflation is their biggest problem today.
Small businesses are particularly vulnerable to the effects of inflation due to their limited resources and tight profit margins.
When prices for goods and services rise, small businesses face increased costs for raw materials, supplies, labor, and transportation.
These escalating expenses often outpace their ability to raise prices, resulting in reduced profits, decreased cash flow, and, in some cases, financial hardship.
11. Aside from Inflation, Here Are Three of The Most Common Problems Small Business Owners Face:
Inflation is just one of the many problems entrepreneurs face in starting out their endeavors.
- Over a quarter (26%) of small business owners identify the quality of available labor as a significant challenge, hindering their ability to find qualified and skilled employees.
- The burden of tax obligations remains a pressing issue for 15% of small business owners.
- The escalating cost of labor poses a significant financial burden for 10% of small business owners, challenging their ability to maintain profitability and sustain operations.
12. Over 45% of Business Owners Communicate in Spanish, Highlighting the Language’s Widespread Use in The Global Business Landscape.
If you think English is the only widely-spoken language in the business world, you gotta rush and brush up on your grade school Spanish, as over 45% of business owners worldwide communicate in the language.
In addition, Spanish is the official language of over 20 countries.
It is spoken by nearly 500 million people, primarily in Europe and Latin America.
This extensive geographic reach makes Spanish an essential language for businesses seeking to expand their reach into new markets and connect with a broader customer base.
13. Generation X Has Emerged as The Driving Force Behind Entrepreneurship in The United States
Generation X has emerged as a driving force behind entrepreneurship in the United States, accounting for a remarkable 46.5% of all business owners.
The substantial impact of Generation X entrepreneurs is attributed to a blend of formative experiences, a unique perspective, and a strategic approach to business ownership.
When talking about educational attainment, 30% of entrepreneurs have high school diploma, 31% have associate degree, 17% have finished at least one bachelor’s degree, 18% hold a master’s degree, and 4% have PHD.
14. 74% of Companies Recognize the Power of Social Media and Actively Allocating Resources to Social Media Marketing Strategies
The advent of social media has irrevocably altered the dynamics of business-customer relationships and reshaped the strategies companies employ to navigate the digital sphere.
In fact, in 2023, an overwhelming 74% of companies underscores the growing recognition of its transformative power and the commitment to engaging with customers in the digital era.
Its ability to connect with a vast audience, foster brand awareness, and drive business growth has made social media marketing an indispensable tool for businesses of all sizes.
Today, 64% of companies invest time in search engine optimization (SEO) for better website traffic and conversion rates.
15. Retail and Food Industries Reign Superior, Attracting a Significant Portion of Aspiring Entrepreneurs.
The retail industry remains the predominant choice for a lot of small business owners, accounting for a substantial 18% of all small businesses.
Retail businesses have demonstrated a remarkable ability to adapt to changing consumer trends and technological advancements.
In contrast, the food and restaurant industry, with a remarkable 12% share among small businesses, continued to hold its position as the second largest industry.
16. Over Half or 54% of Entrepreneurs Recognize Communication as The Most Critical Skill for Success
Communication stands as the cornerstone of entrepreneurial success.
In fact, over 54% of entrepreneurs revealed that communication skills are the most crucial skill to learn to succeed as an entrepreneur.
Effective communication enables entrepreneurs to build strong partnerships and relationships with their team members, partners, and customers.
In addition, it sets the tone for a collaborative and innovative work environment, and effectively communicates their vision and ideas to transform their aspirations into reality.
17. 53% of Entrepreneurs Claimed that Problem Solving Skills Are Important for Business Owners.
53% of entrepreneurs recognize the importance of problem solving skills for business success, highlighting the need for adaptability and resourcefulness in the ever-evolving entrepreneurial environment.
Survey participants detailed that effective problem-solving helped them navigate challenges, identify opportunities, make informed decisions, and adapt to the ever-changing business landscape.
Due to the selective nature of this critical skill, a quarter of entrepreneurs worldwide noted having a hard time looking for qualified individuals for the positions.
18. Small Business Ownership in The United States and Japan Is Male-Dominated
The gender gap in small business ownership persists despite significant progress in recent decades.
While the number of women-owned businesses has increased substantially, men continue to dominate the sector, with 77.5% of small businesses led by men compared to 23.4% owned by women.
The same trend holds true in Japan, where only 3.6% of the country’s female population is involved in any kind of entrepreneurial activity.
19. On Average, Entrepreneurs in The United States Can Earn an Annual Base Income of $100,586 in 2023
The average base income for entrepreneurs in the United States is at $100,586 in 2023, reflecting a thriving business landscape in the world’s most powerful economy.
This is the reason why many would rather spend extensive hours building their own business than working their 9-to-5.
Such an income is almost twice as the average nationwide salary in the US which currently stands at $59,428.
20. 67.7% of The World’s Wealthiest Individuals Have Achieved Their Financial Success on Their Own
Two-thirds or accounts to which almost 68% of the world’s wealthiest individuals have achieved their financial success on their own.
Due to the high success rate, 74% of business owners say they are ‘happy’ or ‘very happy’ with how their decision has turned out.
21. 20% of Entrepreneurs Choose to Manage or Own Their Businesses with A Family Member/s on The Side
The choice to partner with a family member/s in starting your own business is an important decision.
It is often driven by a blend of shared values, mutual confidence, and a profound comprehension of each other’s strengths and limitations.
An estimated 20% of entrepreneurs choose to manage or partner with a family member in starting their own business.
There is currently a widespread existence of family-owned businesses globally, with 18.7% of all enterprises falling under this category.
With its global reach, entrepreneurship is a testament to how the human spirit can transform ideas into action.
With different motivations, anyone can create and innovate a new product that the public may love today.
Not too many years ago, Apple Inc. was nothing but a backyard project.
Today, it holds a multi-trillion-dollar valuation, and consumers anticipate the launch of a new iPhone model every year.
Thanks for tuning in to our entrepreneur statistics for 2023!