May 27, 2025
Are you thinking about starting a business, or are you already in the thick of it?
The data doesn’t lie: launching a small business can be exciting and overwhelming. A recent Forbes Advisor article compiled some eye-opening small business statistics, and if you’re dreaming about turning your idea into income, there’s a lot to pay attention to.
Here are a few takeaways about small business statistics that stand out — and how we can help.
20% of new businesses fail in the first year
That number jumps to 50% by year five.
The top reasons? Poor planning, lack of market need, and cash flow problems.
Our take:
We believe many of these failures are preventable. The first step is to be clear about your audience, your offer, and your strategy. This is exactly what we help you build in The Start-Up Method.
Boomers and Gen X own the vast majority of small businesses
Forbes research reported that Millennials own just 13% of small businesses, with the average age to start a business reportedly at 35 years old.
Our take:
You are never too old to get started with a side gig or be your own boss. Do the homework and ensure you understand the market and your customer value, then take the leap and get started.
Lack of market need and marketing are the top struggles
According to Forbes, one of the most common reasons for small business failure is not understanding the demand for your product, while 35% of small business owners say their biggest challenge is marketing, especially reaching the right people on the right platforms.
Our take:
Make sure you take the right steps to get started, and do your homework to determine your product fit in the market. You also don’t need to be on every channel or run expensive ad campaigns.
Talk to us, we have been through the stress of setting up a business and how to do it, so you are not overwhelmed.
TIP: Know your target market, have a clear brand message, a focused strategy, and tools that work for you.
Most business owners wear too many hats
From operations to marketing to customer service, entrepreneurs often try to do it all, which leads to burnout and stalled growth.
Our take:
You don’t have to do everything alone. When you have a road map and experienced support, it’s a game-changer.
The opportunity is real
Here’s the bright side: 99.9% of all U.S. businesses are small businesses.
Entrepreneurship is thriving, and there has never been greater access to tools, education, and mentorship for people who want to build something of their own.
Our take?
Just do it.
If you’re dreaming about starting a business — or turning your side hustle into something real — these statistics aren’t meant to scare you. They’re meant to prepare you.
The entrepreneurs who succeed are the ones who start with the right mindset, clear messaging, and a strong marketing foundation.
At Clever Marketers, we help entrepreneurs take those first steps with confidence.
If you’re not sure where to begin, start with our 10-Step Startup Roadmap, or book a free Discovery Session. We’ll look at where you are today and help you identify the smartest next steps for your business.
Book your free Discovery Session.
Sources: Stats summarized from Forbes Advisor: Small Business Statistics