31 Key Entrepreneur Statistics You Need to Know

Despite the pandemic – or perhaps because of it – Americans have started new businesses in record numbers in the last few years. As countless people lost their jobs due to COVID, they sought opportunities to control their financial future. 

This took real courage, as entrepreneurship is risky business even in good times. But of course, entrepreneurs are a hardy lot. 

If you’re considering joining the entrepreneurial ranks, or just curious about the idea, this article presents dozens of entrepreneurial statistics that are likely to be surprising and illuminating. 

General Entrepreneurship Statistics

People start businesses for all sorts of reasons and entrepreneurs come in all shapes and sizes. Entrepreneurship is open to everyone, no matter their background or education, and offers vast opportunity. 

The more than 31 million entrepreneurs in the U.S. have realized this and taken advantage of that opportunity by starting their own businesses. Here are some more stunning stats:

• The US’ 31 million entrepreneurs represent 16% of the adult population
• The number of startups increased nearly 50% from 2010 to 2021
• 55% of American adults have started at least one business 
• 42 is the average age of entrepreneurs starting their first business
• Gen X represents the largest percentage of small business owners at 46.5%
• Baby Boomers are the next largest group at 45.5%
• The biggest motivation for small business owners is dissatisfaction with corporate America, followed by the desire to be their own boss
• 96% of entrepreneurs have no desire to go back to their job
• 99.9% of all businesses in the U.S. are small businesses (less than 500 employees)

Gender Related Statistics

More men than women are entrepreneurs, unfortunately, although the number of women entrepreneurs is increasing around the world.

• Almost half of new businesses formed in the U.S. in 2021 were formed by women
• In 2019 the US was home to 13 million businesses owned by women
• 23.4% of small business owners are women
• 59.2% of female owned businesses are profitable as of 2022
• Retail is the industry with the largest percentage of female owners at 22.3%

Ethnicity Related Statistics

The number of Hispanic, Black, and Asian entrepreneurs is also on the rise. 

• 2.4% of business owners are Black
• 46% of black entrepreneurs are women
• 67% of black business owners are Millennials or Gen Xers
• More than 3 million people are employed by Latino-owned businesses
• Latinos were the fastest-growing segment of entrepreneurs from 2009 to 2018
• 10% of U.S. business owners are Asian

Business Funding Statistics

Entrepreneurs fund their startups in a variety of ways, with cash being the most common.

• 37% of startups are funded with cash
• 10% of startups are funded by family and friends
• Just 6% of startups are funded with SBA loans
• Most new business owners spend $40,000 their first year

Entrepreneur Income Statistics

Of course, if you’re thinking of starting a business, you’ll be interested in how much entrepreneurs make.

• Overall, entrepreneurs make an average of $61,000 per year
• Black entrepreneurs make an average of $38,000 per year
• Latino entrepreneurs make an average of $36,000 per year
• Asian entrepreneurs make an average of $63,000 per year

Success Rates

Most startup businesses do not succeed, but don’t let this stop you. With more than 8,000,000 businesses operating in the U.S., clearly the number of businesses that succeed is high, even though the percentages are low.

• 80% of startup businesses fail within the first year
• 38% of startups fail because they run out of money
• 35% of startups fail because their product has no market need

In Closing

Whatever statistics you use, the fact is that US entrepreneurship has grown by leaps and bounds over the past decade. People want to be in control of their time and their future. If you’re considering starting your own business, be sure to do plenty of research and talk to other entrepreneurs to learn about their experience. 

Good preparation will vastly increase your chances of success.