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2024-06-05 19:14:34

USA TODAY on Nostr: Small business statistics in 2024 ========== According to the U.S. Small Business ...

Small business statistics in 2024
==========

According to the U.S. Small Business Administration, there are 33.3 million small businesses in the United States, making up 99.9% of all firms. Small businesses are responsible for almost two-thirds of newly created jobs in the U.S. between 1995 and 2021. Texas has the highest number of small businesses in the U.S., followed by California, Florida, and Georgia. Around 18% of small businesses fail within a year of opening, while half fail after five years and approximately 65% after operating for up to 10 years. Women own around 26% of all small businesses in the U.S., while just under half are owned by Generation X, and only 14% of small business owners are Black, Hispanic, or Asian. Small businesses contribute 43.5% of the country's total gross domestic product (GDP) and make up 97.3% of exporters. The average annual income of self-employed small business owners in the U.S. is $51,816. Small businesses employ 46.4% of the private sector workforce in the U.S. and contribute to 39.4% of the private sector payroll. Small businesses make up 99% of businesses in the European Union and provide 85% of new jobs and two-thirds of private sector employment. India has the highest number of micro and small businesses in the world, followed by Indonesia, Nigeria, the United States, and Bangladesh. The service industry is the largest sector for micro and small businesses worldwide, followed by trade industries and manufacturing. The fastest-growing industry for small businesses in the U.S. is the forestry industry, followed by individual and family services and support activities for mining. Small businesses face challenges such as rising costs, uneven cash flow, weak sales, and credit availability. The biggest concern for small businesses regarding AI is data security, high perceived costs, and a potential learning curve. Cybersecurity is a significant concern for small businesses, with cybercrime costs projected to reach $10.5 trillion by 2025. Small businesses are interested in using AI or automation, with social media, content creation, and email marketing being the most common areas of implementation. Large banks reported $102.7 billion in loans to small businesses in the U.S. in 2021. The average loan from the Small Business Administration (SBA) is $417,316, and the SBA loaned over $764 billion in 2020. The most common reason for lending is to meet operating expenses, followed by business expansion and asset acquisition. Small businesses face challenges such as rising costs, uneven cash flow, weak sales, and credit availability. The biggest concern for small businesses regarding AI is data security, high perceived costs, and a potential learning curve. Cybersecurity is a significant concern for small businesses, with cybercrime costs projected to reach $10.5 trillion by 2025. Small businesses are interested in using AI or automation, with social media, content creation, and email marketing being the most common areas of implementation. Large banks reported $102.7 billion in loans to small businesses in the U.S. in 2021. The average loan from the Small Business Administration (SBA) is $417,316, and the SBA loaned over $764 billion in 2020. The most common reason for lending is to meet operating expenses, followed by business expansion and asset acquisition.

#SmallBusiness #Statistics #Employment #Revenue #Ownership #Challenges #Ai #Cybersecurity #Loans

https://www.usatoday.com/money/blueprint/business/business-formation/small-business-statistics/
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