As a business owner or manager, it’s important to stay up-to-date on the latest business statistics and facts. Not only will this help you make informed decisions about your own business, but it can also give you valuable insights into industry trends. To that end, we’ve put together a guide to small business stats and facts. It’s full of the latest data on everything from startup funding to employee retention rates. Here’s a quick overview of what you’ll find inside.
1. Startup Statistics
If you’re thinking about starting a small business, it’s helpful to know some key startup statistics. For instance, did you know that the average amount of money raised by startups is $1.3 million? Or that the average startup valuations are around $5 million? These numbers can give you a better idea of what it takes to get a new business off the ground. Additionally, the latest small business statistics say that the number of new businesses being created is on the rise. In fact, there were nearly 700,000 new businesses created in the United States in 2016. This is good news for aspiring entrepreneurs, as it indicates that there are plenty of opportunities out there.
2. Employee Retention Statistics
It’s no secret that retaining employees can be difficult, and small businesses are no exception. In fact, employee retention rates for small businesses are often lower than those of larger businesses. According to a study by the Small Business Administration, the average retention rate for small businesses is only 50%. This means that half of all employees who start working at a small business will leave within one year. There are a number of reasons why employee retention might be more difficult for small businesses. One reason is that small businesses often don’t have the same resources as larger businesses to invest in employee retention strategies.
3. Funding Statistics
Small businesses often have a hard time securing funding. In fact, only about one-third of small businesses that apply for loans are approved. This can be a major obstacle for businesses that need capital to grow. Fortunately, there are a number of alternative funding options available for small businesses. For instance, crowdfunding has become a popular way to raise money for small businesses. Also, small businesses can often get government grants to help with funding. In 2016, the Small Business Administration awarded $23 billion in government grants to small businesses. This money can be used for a variety of purposes, such as hiring new employees or expanding your business.
4. Sales Statistics
Sales are the lifeblood of any business, so it’s important to stay on top of the latest sales statistics. For instance, did you know that the average small business spends $2,000 on marketing and advertising per month? Or that the average sale value is $190? These numbers can help you better understand your own sales data and make informed decisions about your marketing and advertising budget. Additionally, the latest business statistics show that online sales are growing at a rapid pace. If your business doesn’t have an online presence, now is the time to get started.
5. Social Media Statistics
Social media is a powerful marketing tool that all businesses should be using. In fact, social media marketing is one of the most effective ways to reach new customers. According to a study by Nielsen, 92% of people trust recommendations from friends and family more than any other type of advertising. This means that if you can get your satisfied customers to share your business on social media, you’re likely to reach a whole new audience. Additionally, the latest business statistics show that nearly 60% of small businesses are using social media to market their products or services. Also, Facebook is the most popular social media platform among small businesses, with nearly 80% of businesses using it.
6. Customer Service Statistics
Customer service is critical for all businesses, but it can be especially important for small businesses. That’s because small businesses often have to work harder to stand out from the competition. According to a study by American Express, 70% of consumers say they’ve spent more with a company because of excellent customer service. This suggests that investing in good customer service can pay off in a big way. Additionally, the latest business statistics show that customer satisfaction is on the rise. In fact, the American Customer Satisfaction Index score increased by 2% in 2017.
7. Employee Happiness Statistics
Happy employees are productive employees. That’s why it’s so important to create a positive work environment for your team. According to a study by the Society for Human Resource Management, happy employees are 12% more productive. Additionally, the latest business statistics show that employee satisfaction is on the rise. In fact, the Gallup State of the American Workplace report found that employee satisfaction increased by 5% in 2017. It’s clear that happy employees are good for business. This makes investing in your team’s happiness a smart business move.
8. Productivity Statistics
Productivity is a measure of how efficiently workers produce goods or services. In the United States, productivity growth is essential for raising living standards and ensuring long-term economic growth. According to the Bureau of Labor Statistics, nonfarm business sector productivity increased at an annual rate of 1.3 percent in the first quarter of 2019. This was the strongest quarterly increase since the third quarter of 2014. Over the past 10 years, productivity has grown at an average annual rate of 1.2 percent. This is slower than the 2.2 percent average annual growth rate from 1947 to 1973 and the 1.5 percent average annual growth rate from 1974 to 1995 (BLS).
The latest business statistics show that businesses are booming. In fact, small businesses are the backbone of the American economy. They account for 99.7% of all employer firms and employ 58.9 million people. Additionally, small businesses create 1.5 million jobs each year. Clearly, small businesses are a vital part of the American economy. By understanding the latest business statistics, you can get a better sense of what’s working well for small businesses and where there is room for improvement.