Small Business Statistics By Ownership, Loans, Technology And Facts (2025)
Maitrayee Dey
Updated · Jun 26, 2025
WHAT WE HAVE ON THIS PAGE
- Introduction
- Editor’s Choice
- Small Business Ownership Statistics By Employee Size
- Small Business Failure Rate Statistics
- Small Business Entrepreneurship Statistics
- Small Business Financing Statistics
- AI Usage Statistics In Small Businesses
- Digital Marketing And Small Business Statistics
- Small Business Marketing Statistics
- Small Business Technology Statistics
- Small Business Civic Lawsuits Statistics
- Small Business Loans Statistics
- Top Reasons For Americans To Start A Small Business
- Benefits Of Small Businesses Statistics
- Top Challenges Of Small Businesses Statistics
- Conclusion
Introduction
Small Business Statistics: To balance out every country’s economy, small businesses are termed the backbone. Small businesses are types of corporations, partnerships, or sole proprietorships that are independently owned companies with fewer employees and lower revenue than large companies. Many small businesses are now utilising the internet and various digital tools to connect with customers, and many of them generate income by selling online.
This article includes several statistical analyses from different sources that will guide you in understanding the importance of small businesses’ effectiveness in recent years.
Editor’s Choice
(Reference: sellerscommerce.com)
- The above graph indicates that in the United States, the total number of small businesses is expected to reach 34.8 million by 2025, up from 34.7 million in 2024.
- According to the Forbes report analysis, approximately 46% of all U.S. workers are employed by small businesses, while less than 20% of these businesses have staff.
- Out of 10 small businesses, 8 have no employees, while 80% of such businesses are termed as solo ventures.
- In the last 25 years, more than 12.9 million jobs have been added in small businesses.
- Over the next ten years, approximately 804,000 new jobs are expected to be added, with a projected growth rate of around 22%.
- The Sellers Commerce report states that from 1998 to 2014, the share of small businesses in GDP decreased from 48% to 43.5%.
- As of 2025, in the United States, around 90% of small businesses use at least one Artificial Intelligence (AI) platform.
- The Sellers Commerce report states that in 2025, approximately 57% of business owners reported starting their businesses in that year.
- WebFX reports that, based on customer interactions, 80% of small businesses have adapted their marketing strategies in recent years.
- Backlinko reports that 80% of small business owners claim that using AI helps them work faster and accomplish more.
- The Zebra report further states that around 90% of global small businesses will experience a lawsuit at some point in their lifespan.
Small Business Ownership Statistics By Employee Size
- As of 2024, the United States had more than 161.9 million people employed, up from 161 million in 2023.
- By the end of 2032, the country is going to add 4.7 million new jobs.
(Reference: forbes.com)
- The above graph indicates that in 2024, approximately 647,921 businesses had between 20 and 499 employees.
- Additionally, there are 5,471,736 businesses with 1 to 19 employees.
- On the other hand, approximately 27,151,987 companies had no employees.
By Salary
(Reference: forbes.com)
- On average, high-end small business owners earn a salary of USD 147,000.
- Meanwhile, the average and minimum salaries owners earned around USD 69,119 and USD 32,000, respectively.
By Demographics
(Reference: forbes.com)
- The above graph indicates that in 2024, male and female small business owners accounted for shares of 57% and 43%, respectively.
- Based on ethnicity, Racial Minorities own 20% of small businesses, followed by Hispanics (14%), and Veterans (6%).
(Reference: forbes.com)
- Despite being considered highly entrepreneurial, the Gen X generation owns just 13% of small businesses in 2024.
- Additionally, Boomers and Millennials captured a 40% and 13% share, respectively, among small business owners.
By Geographic Distribution
(Source: tailorbrands.com)
- The above graph indicates that in 2024, California had 3.43 million small businesses, which typically have no paid employees other than the business owner.
- Texas and Florida secured the second and third positions with around 2.87 million and 2.77 million small business firms.
- Moreover, New York captured 1.78 million small businesses.
Small Business Failure Rate Statistics
- The Forbes report analysis states that about 20% of businesses close in their first year.
- Meanwhile, around 30% of them shut down by the second year.
- On the other side, 50% of small businesses couldn’t make it past five years.
- In the first five years, almost 42% of small businesses failed because there weren’t enough customers for their products or services.
- About 38% of businesses shut down because they run out of money or can’t get more funds to keep going.
- In the construction industry, most businesses shut down, with 25% of new companies failing within their first year.
Small Business Entrepreneurship Statistics
- A report published by Business.com states that around 42 out of every 100 entrepreneurs are women, and they are typically aged around 44 years old.
- Based on ethnicity, approximately 67% are white, while 15% are Hispanic or Latino.
- Lastly, both Asian and Black or African American entrepreneurs each make up 6%.
- According to the Small Business Administration (SBA), small businesses account for 85% of all businesses and employ 54% of people living in rural areas.
- As of 2024, only 4% of those who purchased a running franchise or an already existing business are owners of small businesses.
- Moreover, 21% began their own independent business from scratch, and 35% chose to open a brand-new franchise.
Small Business Financing Statistics
- According to Chamber of Commerce reports, starting a home-based business in 2024 typically requires an investment of approximately USD 5,000.
- Meanwhile, more than USD 500,000 is required to open a restaurant in a centrally located area.
- The average cost of starting a small business is around USD 30,000.
- In contrast, starting a micro-business typically requires at least USD 2,000.
- However, many home-based franchises cost between USD 2,000 and USD 5,000.
- On average, people who run online-only businesses spend around USD 35,000 in their first year.
AI Usage Statistics In Small Businesses
(Source: sellerscommerce.com)
- As of 2025, in the United States, around 90% of small businesses use at least one Artificial Intelligence (AI) platform.
- Compared to last year’s 23%, about 40% of small businesses now say they are using AI.
- Also, 91% of businesses already using AI think it will help them grow in the future.
- As technology becomes increasingly important, 81% of small businesses are now using more tech platforms.
- Additionally, 77% of small business owners are interested in exploring new technologies, such as the metaverse.
(Source: backlinko.com)
- The above image indicates that approximately 65% of small and mid-sized businesses believe AI can help them generate more revenue.
- AI is currently utilised in various small industries, including 57% in entertainment, 44% in food, and 39% in hospitality.
- Backlinko reports that 80% of small business owners claim that using AI helps them work faster and accomplish more.
- It also helps make their business run more smoothly (47%) and provides them with better information to make informed decisions (46%).
Digital Marketing And Small Business Statistics
- WebFX reports that, based on customer interactions, 80% of small businesses have adapted their marketing strategies in recent years.
- Before contacting any small business, around 70% to 80% of consumers will research it online.
- Meanwhile, 47% of them claimed marketing is the main way they plan to grow.
- Around 36% of small businesses still don’t have a website.
- When it comes to marketing, the top goal of 31% of small business owners is to increase their sales.
- About 64% of small business experts say every department in their company uses the same CRM platform to keep their data in one place.
Small Business Marketing Statistics
(Source: backlinko.com)
- The above graph shows that 96% of small to midsize retailers and restaurants report that they get the most engagement on TikTok, followed by Facebook (68%) and Instagram (47%).
- Meanwhile, 84% of them promoted their business through Facebook, while other popular social media sites they use are Instagram (67%), LinkedIn (64%), YouTube (64%), and TikTok (57%).
- About 83% of small and mid-sized businesses use or plan to use social media marketing.
Small Business Technology Statistics
- According to Flair HR reports from 2023, 72% of small businesses implemented digital tools.
- Thus, by year-end, digital adoption was largely complete among 68% of small businesses with a website.
- Considering technological factors, it was also noted that 64% of small businesses have achieved their goals, along with a strong customer base.
- Meanwhile, 55% of such businesses claimed technological impacts result in effective growth.
- Data analytics in 89% small businesses has successfully improved the decision-making process.
The table below shows the technology evaluation factor of small businesses:
| Factors | SMBs share |
| Ease of use | 69% |
| Trustworthy vendor | 63% |
| Price | 61% |
| Simplicity of maintenance | 61% |
| Speed and ease of setup | 61% |
Small Business Civic Lawsuits Statistics
- The Zebra report further states that around 90% of global small businesses will experience a lawsuit at some point in their lifespan.
- Meanwhile, 75% of small business owners remained concerned about being targeted for a lawsuit.
- Every year, 12 million contract lawsuits are filed against small businesses, and 43% of them are threatened with a lawsuit.
- Currently, 45% of small businesses are involved in litigation, while 36% to 53% of SMBs are sued every year.
- In small businesses, the cost of a liability suit is at least USD 54,000.
- A small business that generates USD 1 million annually typically incurs around USD 20,000 in legal costs.
Small Business Loans Statistics
- For small businesses, large banks approved just 26.9% of loan requests in 2024.
- Small business loans typically average around USD 633,000, according to reports from The Zebra.
- Only 48% of these owners claimed they have enough money to run their business.
- In contrast, 43% of small business owners have tried getting a loan from a small business lender.
- Lastly, due to running out of cash, around 22% of them have shut down their business.
Top Reasons For Americans To Start A Small Business
- The Sellers Commerce report states that in 2025, approximately 57% of business owners reported starting their businesses because they wanted to be their own boss.
- Similarly, 60% of people who planned to start a business say their main reason is to become their own boss.
| Reason | Business owners share | Aspiring entrepreneurs share |
| An opportunity to earn more money | 54% | 60% |
| Desire for a more flexible work schedule | 42% | 45% |
| To pursue a passion project | 30% | 45% |
| To fill a need in the market | 23% | 20% |
| To make a positive impact or change | 19% | 36% |
| Someone you know encouraged you | 15% | – |
| You wanted to leave the corporate world | 15% | 22% |
| Family or generational expectations | 14% | 16% |
| To support your community | 11% | 24% |
Benefits Of Small Businesses Statistics
- In the last 25 years, small businesses have created about two out of every three new jobs.
(Source: webfx.com)
- The above graph indicates that approximately 43% of small business owners reported being very happy about their jobs.
- As of 2025, 73% of them said they wanted a revenue increase, followed by 84% (feel hopeful and positive about their business in the future), and 92% (they’re happy they started their business and have no regrets).
- 29% said the main reason they started their own business was to be their boss.
Top Challenges Of Small Businesses Statistics
(Source: webfx.com)
- In 2025, approximately 55% of small businesses reported that inflation was the top challenge they faced, while 26% claimed revenue as the second challenge.
- Besides, other challenges are interest rates (18%) and affording employee benefits (18%).
Conclusion
After completing the article on small business statistics, small businesses have gone through several challenges before becoming the backbone of the global economy. This article provides a comprehensive overview of the basic to advanced aspects of small businesses, covering topics such as ownership, employee size, salary, demographics, financing, AI usage, digital marketing, civic lawsuits, loans, and benefits.
Hopefully, it has been clear how far small businesses have come on their journey to date. If the report is beneficial, let us know your thoughts.
Sources
Maitrayee Dey
Maitrayee, after completing her graduation in Electrical Engineering, transitioned into the world of writing following a series of technical roles. She specializes in technology and Artificial Intelligence, bringing her experience as an Academic Research Analyst and Freelance Writer, with a focus on education and healthcare under the Australian system. From an early age, writing and painting have been her passions, leading her to pursue a full-time career in writing. In addition to her professional endeavors, Maitrayee also manages a YouTube channel dedicated to cooking.
