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The global economy is going through a transformation with the rise of innovative technologies and entrepreneurs. While many people fear that this change will lead to unemployment, others believe it’s an opportunity to create new opportunities while eliminating some old ones. Here are 28 statistics and trends you should know for 2022.
The “what percentage of the world are entrepreneurs” is a question that has no clear answer. The best way to find out how many people are entrepreneurs, is to look at statistics and trends.
Entrepreneurship is on the upswing, despite the COVID-19 epidemic. Recent data contains both good and bad news, both of which are vital to know in order to assist your business ambitions. To assist you in making current and future business choices, we’ve categorized significant entrepreneurship statistics into eight areas.
Statistics for Beginners
1. In June 2021, 440,000 new businesses were founded in the United States.
According to NPR, 440,000 new companies were formed in June 2021, concluding a record-breaking 16-month period for startups in the United States. In most economies, the number of new businesses is a powerful economic indicator.
2. Males account for 66% of existing and potential entrepreneurs, while females account for 31%.
While this may seem to be a significant discrepancy, women have been breaking new ground in terms of entrepreneurship and company start-ups. The statistic for 2021 indicates a significant increase from 2020, when just 27% of existing and potential entrepreneurs were female.
3. There are 5.9 million entrepreneurs and company owners under the age of 35 in the United States.
Aside from youth, Generation X (ages 35-54) accounts for more over half of all entrepreneurs, with 12.6 million. At well over 11 million, Baby Boomers (aged 55 and over) make up a sizable section of the entrepreneurial population.
4. Twenty percent to twenty-two percent of small firms fail in their first year.
For years, myths and theories about failure rates have discouraged entrepreneurs, but this myth-busting statistic from the Bureau of Labor Statistics is one you can trust. By the end of their second year, 30% of enterprises will have failed, and half will have closed their doors by the end of their fifth year. Only roughly a third of enterprises will be left after a decade.
5. The best states for business are Virginia, North Carolina, and Utah.
The publication’s stringent criteria and methodology include grading states on the cost of doing business and state infrastructure, as well as life, health, and inclusion, which includes health care in general and corporate efforts to be inclusive.
6. The world’s entrepreneur population is estimated to be at 582 million people.
According to the Global Entrepreneurship Monitor, that figure is only going to rise. According to Financial Times statistics, the United States had a 95 percent rise in new company applications; France saw a 20 percent increase in new business applications from the previous year; and Japan saw a 14 percent increase in new business applications from the same month last year.
COVID-19 Impact on Entrepreneurship Statistics
7. In 2020, the number of enterprises with workers fell by 2.4 percent.
The entire US business population is expected to dip from a little over 8 million in 2019 to 7.82 million in 2020, which is acceptable. The good news is that, although the US economy is still recovering, business numbers have increased by 1.5 percent to 7.93 million in 2021. Note that nonemployer enterprises are not included in these data (those with no employees).
8. The SBA disbursed $349 billion in loans to small companies and entrepreneurs during the COVID-19 epidemic.
Under the Keeping American Workers Paid and Employed Act, this assistance was packaged as a number of initiatives, including the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL).
9. Annualized entrepreneur and owner income has almost rebounded to pre-COVID-19 epidemic levels, approaching $2 trillion.
This is an intriguing phenomenon that supports the COVID-19 rush to entrepreneurship theory, given that the Great Recession of 2008 had a significantly longer downturn and recovery.
Statistics on Entrepreneurial Attitudes
Entrepreneurs who were surveyed gave credit to 10.29% of them. As a rationale for beginning a company, “I’m Ready to Be My Own Boss” was mentioned.
Dissatisfaction with corporate America, following a passion, and getting laid off are all reasons why people turn to entrepreneurship.
11. As of July 2021, the Small Business Optimism Index is at 99.7.
The National Federation of Independent Firms (NFIB) publishes the Small Business Optimism Index every month as an economic indicator of entrepreneurs’ readiness and optimism to establish and develop small businesses. It is built around the following elements:
- Plans to Hire More People
- Capital Expenditure Plans
- Inventories to be Increased
- Expect an improvement in the economy.
- Real sales are expected to rise.
- Inventory Currently Available
- Currently Available Positions
- Credit Conditions to Expect
- It’s a good time to expand right now.
- Trends in Earnings
Statistics on Minority Entrepreneurship
12. In the United States, black entrepreneurs make up the biggest category of people of color entrepreneurs.
Black company owners account for 36% of all minority entrepreneurs, followed by Hispanics and Asian Americans.
13. Women account for 46% of black business owners.
This is a significant minority figure for both Black and female entrepreneurs, since this group has one of the highest percentages of female small company owners of any demographic, at 53% greater than white small business owners.
14. Veteran-owned enterprises account for over 1.8 million (or 6%) of all firms in the United States.
The proportion of veteran-owned enterprises in the US adult population closely corresponds to the number of veterans in the general population. However, the SBA believes that the number of veteran-owned firms is undercounted owing to “methodology challenges with matching administrative data” and that “further releases are a work in progress.”
15.6.3 million company owners in the United States were born outside the country.
Just over 20% of small company entrepreneurs fall into this category. According to the SBA, one-third of these entrepreneurs are citizens of the United States.
Statistics on Rural Entrepreneurship
16. From 2018 to 2019, rural areas had a 0.6 percent growth in employment.
This modest pace is less than half of the rise in urban employment during the same period. The USDA is driven to boost economic growth and business development in rural America since these communities are underrepresented in entrepreneurship and economic development in general.
17. Between 2008 and 2020, almost 13,000 bank branches will have closed.
This has a disproportionately negative effect on rural areas. Rural entrepreneurs with limited access to local loans and banking have significantly fewer alternatives for funding the start-up and expansion of their businesses.
Ethical Consumerism is a trend that entrepreneurs should be aware of.
18. Between October 2019 and October 2020, sales of fairtrade foods climbed by 13.7 percent.
COVID-19 has spawned a variety of ethical consumerism tendencies, one of which is represented by this number. Furthermore, sales of organic goods climbed by 19% in the 12 weeks ending May 2020, while sales of meat-free and dairy-free items increased by 25% and 28%, respectively, in the 12 weeks concluding April 2020. According to consumer surveys, these developments imply a shift in consumer patterns and buying after the COVID-19 pandemic. This is critical knowledge for food businesses to comprehend.
19. Sixty percent of people intend to purchase from local stores after the epidemic.
This is up from 40% before the outbreak when people shopped locally. This choice may be motivated by guilt, since restless customers locked in their houses throughout the globe helped ecommerce behemoths increase their profits; Amazon, for example, has seen profits increase by 220 percent in the previous 17 months. This is a positive statistic for small company owners and entrepreneurs in the area.
During the epidemic, 20. 44% of persons reported to have lowered their energy use.
Consumers are increasingly attracted to businesses that show an interest in and respect ethical consumption and social consciousness. Energy use, for example, is a popular topic among consumers. Working from home during the COVID-19 epidemic may have aided in raising awareness of the problem, with 52 percent of respondents stating that they want to reduce their energy use after the pandemic is over.
Customers who buy from brands that reflect their beliefs account for 21.77 percent of all purchases.
Small and big firms should show that they are equally anchored in social good and cognizant of environmental, economic, and social challenges, just as consumers have become increasingly based in ethical and socially conscious consumption.
Digital Dependence is a trend that entrepreneurs should be aware of.
22. There are 4 billion email users on a daily basis.
Because email marketing is making a comeback, small company owners and intelligent entrepreneurs should keep track of that email address. Email marketing is not only simple for company owners to use, but it is also one of the most cost-effective and high-return marketing tactics accessible to small firms. Email marketing delivers a stunning return on investment of $36 for every $1 invested.
23. Over the last nine years, subscription companies have increased by more than 435 percent.
Subscription plans have continued to rise, aided by Netflix and meal subscription boxes, among other services. This strategy is simple, easy to advertise, comprehend, and a viable income plan for a wide range of businesses. Subscription is appropriate for a variety of merchants, supermarkets, gyms, websites, music, and other businesses.
24. Job postings for remote overseas workers are increasing at a rate of 15% each month.
This movement has been pioneered by IT entrepreneurs, but other sectors are following suit, with Canada and Mexico among the top target markets. Entrepreneurs should think about hiring overseas labor as a possibility for their company.
25. The typical American spends 2.5 hours every day on social media.
As alarming as that social media use figure is, it’s an inevitable signal for business owners. Entrepreneurs and small company owners may benefit from social media and multichannel marketing, which includes developing platforms, content development, and influencer marketing.
Entrepreneurial Resources
26. Since 2008, the USDA’s Rural Microentrepreneur Assistance Program has disbursed $68 million in loans and $17 million in grants via its Rural Microentrepreneur Assistance Program.
With a variety of comparable business initiatives aimed at socially disadvantaged groups, charities, institutes of higher education, rural enterprises, and federally recognized tribes, the USDA has boosted rural economic growth and helped reduce poverty. These materials should be known by rural businesses.
27. InBIA’s entrepreneurship center network has expanded to 1,200 members in 30 countries.
Small Business Development Centers (SBDCs), charities, government and economic development agencies, and universities all around the globe have incubators, accelerators, hubs, and co-working spaces.
28. There are over 20,000 coworking spaces in the globe.
In addition to providing needed Entrepreneurial Resources, co-working spaces are good for communities and economies. According to CoworkingResources, there will be more than 40,000 co-working spaces by 2024. Although this estimate was made before the COVID-19 pandemic, recent reports indicate that co-working or shared workspaces will likely “weather the storm” and perhaps even see a stronger growth trajectory going forward.
Conclusion
Entrepreneurship requires a thorough understanding of the environment, the client, and the changes that affect both. Following entrepreneurship statistics, facts, and trends may assist any entrepreneur get started and keep on track in the rat race.
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The “entrepreneurship statistics 2021” is the year that many people are looking forward to. The article talks about 28 entrepreneurship statistics and trends for 2022.
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