35 Facts About Small Business That Every Entrepreneur Should Know

The work required to build a small business can sometimes seem overwhelming, but don’t get discouraged. You’re not the first person to feel this way, and you won’t be the last. Every entrepreneur goes through this, and each experience adds to the collective knowledge we share.

What does this knowledge look like? Check out these 35 small business facts, and use them to empower and energize you:

Thinking About Starting a Business?

1. Can’t stand to commute? Don’t want to stare at a cubicle all day? You could be an entrepreneur; more than half of all small businesses are home-based.

2. According to the World Bank, it takes roughly three days to set up a business in Denmark; it takes six days in the U.S., and 144 days in Venezuela.

3. What kind of small business should you start? Some industries are more profitable than others. According to Sageworks, the top five are:  accounting, tax preparation, bookkeeping and payroll services; real estate leasing; automotive equipment rental and leasing; dental offices; and legal services.

3. What kind of small business should you start? Some industries are more profitable and have lower upfront investment costs than others. The top five are electronic shopping and mail order houses, software publishers, computer system design, investigation and security services, and services for buildings and dwellings.

Let's Talk About Money

4. Worried you might not get that business loan? You can relax: 90 percent of those who applied for a loan between 2013 and 2015 got approved.

5. Big bank loan approval rose 1.3 percent from February 2015 to February 2016; institutional lending rose a full 2 percent during the same time frame.

6. Some businesses can’t meet the requirements for a loan or pose too high a risk for traditional lenders. If that is you, look to microlenders instead; they generally look for decent credit and a demonstrable ability to repay.

7. Many traditional banks won't make microloans (those $50,000 or less) because they're not profitable.

8. Crowdfunding options let you raise funds from people who believe in you and your business. These people are natural ambassadors because they have a stake in your success and want to see you succeed.

9. Venture capital investments broke $59 billion for 2015 and helped more than 1,400 companies. Most of these were new and early stage businesses.

10. Alternative lending sources continue to gain popularity because of quick approval times and almost guaranteed approval; however, this ease comes at a cost--interest rates can be extraordinarily high.

11. Women entrepreneurs can apply for special grants to help their businesses grow and remain competitive.

12. Minority-owned businesses are also eligible for similar grants. Some of these aim to increase a positive presence in urban and rural areas; others extend offers to students through education and funding.

13. Tax time can create headaches for small businesses, but there can also be perks. Don't forget about deductions for using your personal vehicle for business, having a home office, hosting business meals, travel expenses, and more.

The Future Looks Bright

14. Businesses close their doors for a number of reasons, but don’t lose hope. The long-term survival rate is 80 percent higher than in 1977, almost 40 years of longer-lasting operations.

15. The year 2016 marks the fourth consecutive year of improved net profits for businesses with less than $5 million in annual revenue; current trends indicate 2017 may be the fifth.

16. Small business owners feel the future looks bright, More than half see tomorrow as a chance for greater growth and better financial security; three-quarters see better business prospects ahead.

Employment Options

17. More than 70 percent of all U.S. small businesses are owned and operated by a single individual.

18. Small businesses are filling the gap. During the last 26 years, big businesses cut 4 million jobs, but small businesses added 8 million new ones.

19. Fifty percent of established small businesses plan to hire in 2016, an 82 percent increase from 2015.

20. You don't have to hire a person for every single position; 54 percent of small businesses outsource jobs such as graphic and website design.

Strength in Numbers

21. In 2014, there were 9.1 million women-owned businesses; there were only 2.9 million in 1997. This growth of women-owned firms (68 percent) exceeds the growth rate of all other groups except for large, publicly-traded corporations.

22. Two-thirds of business owners attended at least one trade convention. What better place to network or to check out the competition?

23. Sixty-eight percent of businesses belong to at least one business-related organization. In addition to great networking, these associations also offer owners benefits such as continuing education, updates on industry trends, discounts on business services, and more.

Marketing Ideas

24. Don't have a marketing staff? You're not alone. Many small businesses get assistance from freelancers or advertising agencies.

25. Fifty-two percent of small businesses made new connections through Facebook. The added cost to create a Facebook business page? Nothing.

26. You can successfully market your small business for $100 per month with email marketing, sponsored social media posts, and a few other tactics.

27. Looking for an inexpensive marketing tactic? Create videos of customer testimonials or product tutorials and run them on your own YouTube channel. The channel is free, you can film from your smartphone, and there are several good free (or very inexpensive) video editing apps.

28. Don't use the internet for all your marketing; it won't reach everyone you need. There is still tremendous power in direct mail pieces, coupons, printed newsletters, print and television advertising, brochures, and more. Surprisingly, only 56 percent of small business owners use both online and traditional marketing tools.

Small Businesses Are Special

29. You likely live, work, and play in the same community. Show your appreciation for your neighbors' confidence and patronage and give back. Donate time, money, or in-kind gifts to local organizations.

30. Small Business Saturday, which began in 2010, encourages shoppers to support their local businesses on the November Saturday between Black Friday and Cyber Monday.

31. President Barack Obama officially proclaimed the first full week of May “Small Business Week” in 2015. He said: "Representing the quintessential American ideals of hard work and ingenuity, small businesses–from start-ups to mom-and-pop shops–are crucial to our national prosperity and economic security.”

Internet Insights

32. More than half of all websites of small businesses lack some piece of pertinent information such as a contact number, email address, or even physical address! How can customers reach them?

33. Mobile commerce will only continue to grow. A mobile-friendly website with payment capabilities keeps you closer to almost 60 percent of consumers.

34. People aren't the only ones paying attention to mobility. Search engines like Google will give mobile-optimized websites greater weight and relevance over other sites.

35. Watch for emotional analytics to gain ground in 2016 and provide deeper insight into consumer behavior. These analytics provide data on emotional engagement with things such as ads, online content, and more.

Special thanks to Kim Keller and Craig Spence for their help with research.