There is something very exciting about starting your own company. But of course, there is some danger here, especially in the unpredictable times global entrepreneurship has been experiencing over the last year.
These entrepreneur stats can show you how realistic this path is, as well as how dangerous (and lucrative) it can be. You need to make a sizable investment, both in terms of time and money, and failure is a real possibility. However, not many things can match the satisfaction you can get from starting your own enterprise.
The stats and facts below can give you a clearer image of what it’s like being an entrepreneur in 2021, how many entrepreneurs there are, and maybe a glimmer on the odds of you succeeding.
Top Ten Entrepreneur Statistics for 2021
- There are 582 million entrepreneurs in the world.
- The US has, roughly, 8 million minority-owned businesses.
- Statistics on success rate of entrepreneurs show that the pandemic made 56 Americans billionaires.
- Globally, 9% of all students want to become entrepreneurs after they finish their studies.
- Premature scaling is the cause of death for 70% of startups.
- There are 71 women entrepreneurs for every 100 men in the United States, based on the female entrepreneurship statistics.
- 27% of entrepreneurs claim that finding good contractors is the greatest challenge.
- Statistics on entrepreneurs indicate that 62% of all small businesses do not employ any staff.
- Around 55% of Americans believe they are capable of starting and running their own business.
- Self-employed individuals have greater career satisfaction, which grows over time.
The US Entrepreneur Stats for 2021
America has a reputation for being a country of visionaries, innovators, and entrepreneurs. This is why we chose to specifically look into the US entrepreneurship statistics and find out why America is the place to be if you are an aspiring entrepreneur.
1. The US has, roughly, 8 million minority-owned businesses.
(Office of Advocacy)
Relevant entrepreneur statistics show solid proof for US entrepreneurial equality. However, there are some differences between these companies. For example, minority-owned businesses hire roughly 8 people, on average, while non-minority-owned businesses hire 10.
2. There were roughly 659 billionaires in the US in 2020, according to the entrepreneur statistics.
(Wealth-X) (Investopedia)
Of this number, 80% are “self-made” and did not inherit these billions. However, most of them did have strong foundations and familial assistance from which they built their wealth later on. Of this number, the largest group (19.4%) works in finance banking and investing.
3. Statistics on success rate of entrepreneurs show that the pandemic made 56 Americans billionaires.
While you would expect the opposite, since economies around the world are collapsing and people are losing jobs, quite a lot of people benefited from the situation.
Since March 2020, CEOs of AirBnB and DoorDash joined the list, while Jeff Bezos, Elon Musk and Bill Gates further expanded their wealth.
4. Around 55% of Americans believe they are capable of starting and running their own business.
(Babson)
These entrepreneur stats show how far American optimism goes. The number above represents the national average, a number that varies from state to state and city to city. In Miami, this number is at 60%, while Detroit reports 57%.
This means that people in these cities have lower numbers regarding the fear of failing. Of the entrepreneurs coming from the latter city, 21% have a fear of failing, while entrepreneurs from the former are at 27%. The national average for this stat is 33%.
5. The US is the best country for entrepreneurship, with a GEI of 83.6.
(The Global Entrepreneurship and Development Institute)
The Global Entrepreneurship Index (GEI) represents the “healthiness” of a national environment for entrepreneurship. It represents the likelihood of success, both domestically and internationally. The relevant business and entrepreneur facts show that the US is number one, with the highest index.
This index includes both the abilities, aspirations, and attitudes of a country’s populace regarding entrepreneurship, along with the economic and social infrastructure.
6. Around 19% of all self-employed professionals in the US work in the construction/trades area.
(FreshBooks)
Construction seems to be very popular among entrepreneurs. According to US entrepreneurship statistics, it’s at 19.6%. Next, 10.9% of all entrepreneurs are working in retail, while 10.7% are in real estate.
Another close one is consulting, with 10.3% of self-employed individuals working in this field. It’s interesting to note that marketing is at the very bottom when it comes to entrepreneurship, being at 1.7%.
7. Statistics on entrepreneurs indicate that 62% of all small businesses do not employ any staff.
(FreshBooks)
The reasons might vary, from not having the need or the means to hire someone, to simply waiting for their business to develop.
28% of small businesses have somewhere between one and five employees, while 10% have more than 5.
8. Healthcare and social assistance industries are predicted to have the highest levels of growth by 2024.
(U.S. Bureau of Labor Statistics – projections of industry employment)
According to industry and entrepreneurship growth statistics, the above two fields will have an increase of 21% in 2024 compared to where they were in 2014. The second place goes to construction, with 13%.
On the other hand, the IT industry is expected to drop by 1%, while federal government jobs will be declining by 14% of what they were in 2014.
Statistics in Business — Global Entrepreneurship Data
How do these stats compare to the conditions entrepreneurs have all over the world? How many entrepreneurs there are, and where do businesses have the greatest chance of success? Let’s find out more about global entrepreneurship!
9. There are 582 million entrepreneurs in the world.
(The Hill)
These entrepreneur stats published in The Hill, and gathered by the Global Entrepreneurship Monitor, came from 65 different global economies. The Hill argues that having more entrepreneurs does not mean one society is better than another.
Rather, there also needs to be an assessment of not only how many new businesses cropped up, but also how many reached a mature, established business phase.
10. After the US, Switzerland, Canada, and the UK are the best countries for entrepreneurship, according to various statistics about entrepreneurship.
(The Global Entrepreneurship and Development Institute)
According to the global entrepreneurship system and data gathered up by the Global Entrepreneurship and Development Institute that measures the health of a country’s entrepreneurial ecosystem, the US is number one (see stat number 4).
Furthermore, according to the GEDI, Switzerland has a GEI of 80.4, while Canada is at 79.2, and the UK has an index of 77.8.
11. Chad, Mauritania, and Burundi have the lowest GEI.
(The Global Entrepreneurship and Development Institute)
Statistics on entrepreneurs published by the GEDI show that, of the 137 ranked countries, Chad, Mauritania, and Burundi are the lowest on the list. They have GEIs of 9, 10.9, and 11.8, respectively. Of course, this doesn’t mean that it’s impossible to start a business in these countries; it’s just pretty difficult.
12. Globally, 9% of all students want to become entrepreneurs after they finish their studies.
(GUESSS)
Global student entrepreneurship statistics from over 3000 universities, from 54 countries, show that many want to start their own business after finishing college.
While 9% want to start a business right after they get their diplomas, 34.7% want to do so within five years after they walk out of their universities. Furthermore, developing countries and Latin American countries show the highest numbers of entrepreneurial aspirations.
Entrepreneurship Stats and Facts About Entrepreneurs
Who are entrepreneurs? What percentage of the population are entrepreneurs? Long gone are the times when we imagined entrepreneurs as serious middle-aged people in suits.
The situation has changed quite a bit, and the chances are that a 2021 millionaire entrepreneur looks no different than the average person you meet at the supermarket every day.
13. Roughly 30% of small business owners only have a high school diploma.
(Guidant Financial)
While it may help, having a college degree is not a necessary prerequisite to opening your own business. According to entrepreneurship stats gathered by Guidant Financial, 30% of business owners do not have a college diploma.
On the other hand, 4% of US entrepreneurs have a doctorate, while the vast majority did finish their college education.
14. There are 71 women entrepreneurs for every 100 men in the United States, based on the female entrepreneurship statistics.
(Babson)
The national average shows that by roughly a third, men report greater Total Entrepreneurial Activity Rates compared to women. The rate of female entrepreneurs rose between 2015 and 2016 by one percent (reaching 10% of the female population), compared to male statistics, which stayed the same (being at 15%).
15. Roughly 64% of entrepreneurs in the US are Caucasian.
(Babson)
Furthermore, 8% of entrepreneurs in the United States are of Latino/Hispanic descent, while black entrepreneurship statistics show that 14% are African-American.
According to the report, these numbers do, to a greater or lesser degree, match US population demographics. The report also notes that there have been relatively higher levels of fluctuation among African American entrepreneurs in the US between 2013 and 2016.
16. Women own almost 12 million small businesses in the United States.
(American Express)
Female entrepreneur statistics show how much of an impact women have on the economy. The above small businesses have created jobs for about 9 million people, and they generate roughly $1.7 trillion.
Women own 39% of all US companies, and female-owned business numbers have seen a 114% growth rate in the last two decades.
Entrepreneurship Challenges and Benefits
What is interesting in entrepreneurship? What do people get out of it and what should you expect if you make the leap of faith? How much does an entrepreneur make? Read through these stats to find out!
17. Premature scaling is the cause of death for 70% of startups.
(Forbes)
According to startup facts gleaned from a report from the Startup Genome, roughly 70% of the 3200 surveyed startups failed because of premature scaling. These statistics about entrepreneurs show that spending more money than is essential for growth before actually getting your own piece of the market leads to disastrous results.
The report also shows that nailing your product and idea takes two to three times longer than what most entrepreneurs expect.
18. Majority of entrepreneurs would not want to return to regular jobs.
(FreshBooks)
It may come as no surprise that 97% of all self-employed individuals in the US do not wish to get back to the traditional work system. These entrepreneurship statistics are pretty clear – people do not regret going down this path.
19. Self-employed individuals have greater career satisfaction, which grows over time.
(FreshBooks)
Around 61% of individuals with traditional jobs are satisfied with their careers, while self-employed people are at 71%.
Furthermore, according to entrepreneurship statistics, this 10% gap grows over time as self-employed people get a better work-life balance, higher income, and improved health.
20. 27% of entrepreneurs claim that finding good contractors is the greatest challenge.
(FreshBooks)
Apart from fueling yourself with caffeine to stay awake until you implement your ideas, there are some more challenges down the road. Entrepreneurship stats gathered by FreshBooks’ self-employment report show another 23% who struggle getting customers and 22% getting more funds.
Some 16% have a hard time setting their prices, and 15% of those who think managing their time effectively is the most challenging aspect. People also report having trouble keeping costs down.
FAQ
What are the five advantages of entrepreneurship?
(Future of Working; Opstart)
While there are many advantages to becoming an entrepreneur, five stand out.
- Defining your income (and having a greater income potential)
- You control your time and schedule
- Entrepreneurs are passionate about their work
- All your successes (and failures) are yours
- More freedom in how you lead your business, your ideas, and your life
All of these can boil down to you having more control and more freedom.
What is the failure rate of all entrepreneurs?
(US Bureau of Labor Statistics)
Entrepreneurial failure rates vary across industries and countries. However, as far as the US is concerned, roughly 80% of businesses will survive the first year.
These numbers continue to drop, where 70% of the previous survivors will go through their second year, 50% will survive their fifth year, and only 30% will reach their tenth year of business. However, this shouldn’t dissuade you. Finding inspiration and motivation, working hard, you really can be in the successful bracket.
What does an entrepreneur do?
(Investopedia)
Entrepreneurs have a simple definition. These are people who create and start new businesses, who innovate and boost the economy through new and improved services, goods, ideas, or original business procedures.
Conclusion
Entrepreneurs and small businesses are key to a strong, healthy economy. They create jobs, provide advanced services and goods, and strengthen their communities and countries. In these challenging times, they took the hardest blow of the pandemic and managed to remain pillars of local economies.
The entrepreneur stats above show you the demographics and the realities of being an entrepreneur both worldwide and in the US. Hopefully, this will inspire you to pursue your dreams – and to prepare properly for doing so.
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