Entrepreneurial bug can bite almost anyone, especially the ones who hate being bossed, have fairly independent streaks of character or have the urge to make big. Ambitious enterprises and small businesses are at the core of every industry. This is because not only do these businesses contribute in a big way to the overall revenue of a country but bring great benefits to the owners as well.
Employees who take the plunge and become independent business owners are reported to feel more fulfilled and motivated to work. It is supposed to be a thrilling new experience with extremely rich rewards but with a large amount of involvement and continuous pressure.
While the year 2020 had presented a unique challenge for small business owners where even the future of many businesses appeared uncertain, it also provided remarkable opportunities to continue, evolving the way business owners created, bought and sold products/ services.
If you are someone who is thinking to take a leap into entrepreneurship, you should do your homework well and know important aspects of entrepreneurship such as:
- How many entrepreneurs are there in the world?
- What are the joys of entrepreneurship?
- How much risk am I taking by going down the entrepreneurship road?
Here are some key statistics to know about the state of entrepreneurship in 2021:
1. There are close to 582 million entrepreneurs in the world. While this may appear to be a lot however, there is still a large room for growth.
It is often said that entrepreneurship statistics help nations to have a better understanding of the market needs in specific niches and thus help create a better ground for development.
2. 26% of entrepreneurs cite readiness to be their own boss as the most common reason for starting a business. The statistics indicate that about 23% wanted to pursue their passion and 19% did because a good opportunity presented itself. About 6% started a business after losing their job and 6% did so in order not to retire.
3. There is a belief that youth are responsible for most successful businesses but studies have shown that middle-aged men have a better chance of succeeding in business, especially if they already have experience in the same field.
60% of people who start their own small businesses are between the ages 40 to 60.
4. The primary reason for business failure is lack of market need. This is followed by the lack of funds being the second largest reason.
Entrepreneurship failure rate is currently at its lowest i.e. only 22.5% are closing down after a year. On average, half of the businesses survive for 5 years while only 30% reach a decade of existence.
6. 62% percent of small businesses run without any staff. About 28% have 1-5 employees and only 10% of the businesses have more than 5 employees.
7. 67% of small business owners use their personal funds to deal with business challenges. While 39% of owners take additional loans to deal with the crisis, about 33% resort to cutting down the staff, hours, or downsizing their operations.
8. 54% of self-employed entrepreneurs claim that they make more money than before, when they were employed.
9. The World Bank’s Ease of Doing Business index ranks economies according to how helpful they are for new businesses. Of the 189 countries, New Zealand is at the top and followed by Singapore, Hong Kong, Denmark, and South Korea.
10. The latest statistics indicate that three out of every four businesses in the USA were profitable in the year 2020. Business with highest net margins includes Accounting followed by real estate business at second place and legal services come a close third.
11. Close to 68% of the world’s wealthiest individuals are self-made. Less than ¼ depended upon themselves while about 9% have inherited their wealth.
12. 67% of small businesses depend upon social media for business networking and 70% of small businesses offer their products and services online.
13. With a Global Entrepreneurship Index of 83.6, the US is the best country for entrepreneurs. This index is built upon numerous factors to create one comprehensive overview of the situation. Switzerland is at the second place with a score of 80.4, followed by Canada, UK and Australia.
14. Food industry is the most popular business with about 11% people getting into it, followed by health/ beauty (approximately 10% people get into the health/beauty sector). General retail sector holds 7% popularity while home support services hold 6%.
15. In the USA, during the last 21 years, small businesses created approximately 64% of all the new jobs indicating the potential of small businesses equivalent to that of an engine of national growth.
16. On the other hand, 68% of all the small businesses in the USA have an outstanding debt with 37% of companies having debt in the range of US$ 100000 to US$ 1 million and 9% with a debt over US$ 1 million.
17. 43% of individuals who were polled about entrepreneurship, said that career change is a great motivator for moving away from traditional jobs and making better earnings.
33% of individuals said they would be happy to switch to self-employment because of financial incentive.
About 32% indicated that family reasons would force them to become entrepreneurs.
18. For about 27% of the entrepreneurs, the toughest part of running their businesses was to find talented staff or contractors for outsourcing parts of non-core business.
19. For every 10 male businessmen, there are 7 female businesspersons. In six countries the Women and Men have an equal distribution. These countries are Indonesia, Thailand, Panama, Qatar, Madagascar and Angola.
20. About 18.7% of businesses worldwide take the form of family businesses. Such an arrangement is popular in few countries such as Colombia, United Arab Emirates, and Uruguay.
Today, entrepreneurship is commonly present everywhere in the world. However, few countries such as Brazil and Columbia are still developing gradually in the terms of entrepreneurship.
The above stated statistical facts would help one understand and evaluate how entrepreneurship is widely viewed and commonly approached by. If you are someone who aims to become an entrepreneur, in whatever field it may be, these stats would help you gain a clear and better idea about the same. While being an entrepreneur is a tough job, anyone can be successful if the process and risks involved are truly understood.
Akash Tripathi is a Content Marketing manager at Top Mobile Tech that curates articles on a Software Development or App Development Company as well as Video production company. Stay connected to the rest of the world with Top Mobile Tech. We bring latest and critical news to your mobile and computer devices.