Small Business Statistics and What They Mean for Startups

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

On the bright side: 99.9% of all U.S. businesses are small. Entrepreneurship is thriving, and there’s never been more access to tools, education, and mentorship than there is today.

Our take:

Just do it! If you're dreaming of starting a business (or making your side hustle real), the small business statistics data isn’t meant to scare you, it’s meant to prepare you.

At Clever Marketers, we help entrepreneurs get started the smart way, with the right mindset, messaging, and marketing foundation.

Want to beat the odds? Start with our free 30-minute coaching session — no pitch, just guidance. Book your session here or explore The Start-Up Method.

Sources: Stats summarized from Forbes Advisor: Small Business Statistics