Top 5 Surprising Small Business Facts You Need to Know

Small businesses are the backbone of our economy. In fact, small businesses make up 99.9% of all businesses in the United States. However, there are some surprising facts about small businesses that you need to know. In this blog post, we’re going to dive into the top 5 surprising small business facts.

Fact #1: Small businesses are a significant contributor to employment
Small businesses are responsible for creating two-thirds of the net new jobs in the United States. In fact, small businesses with fewer than 100 employees make up the largest share of employment in the U.S. These businesses are not just hiring themselves; they’re investing in their local communities and creating job opportunities in the process.

Fact #2: Many small businesses fail within the first few years
While small businesses are essential to our economy, many fail within the first couple of years. In fact, only 50% of small businesses will survive past year five. The reasons for failure vary, but quite often, it’s due to lack of planning, insufficient capital, or inadequate market research. If you’re planning to start a small business, it’s crucial that you do your research and have a solid plan in place to avoid becoming a statistic.

Fact #3: Small businesses innovate and disrupt markets
Small businesses are known for being nimble and disruptive. They’re agile enough to pivot quickly and come up with innovative solutions to problems. In fact, 42% of small businesses consider themselves innovators, and they’re responsible for bringing new ideas, products, and services to market. Small businesses are often the driving force behind industry disruption.

Fact #4: Small businesses struggle to access capital
Access to capital is one of the most significant barriers for small businesses. Many businesses struggle to secure loans or find investors because they don’t have a track record of success or enough collateral to back up the loan. Additionally, some communities are underserved when it comes to banking services, making it difficult for small business owners in those areas to access the capital they need to grow.

Fact #5: Small businesses face significant cybersecurity risks
Small businesses may not have the same level of cybersecurity infrastructure as larger corporations, but that doesn’t mean they’re immune to attacks. In fact, small businesses are often targeted because hackers view them as easier targets. A cybersecurity breach can be devastating for a small business and may lead to loss of data, reputational harm, and significant financial losses.

In conclusion, small businesses play a significant role in our economy. They create jobs, innovate, and disrupt markets. However, they also face significant challenges, such as accessing capital and protecting themselves from cybersecurity threats. As a small business owner, it’s essential to understand these facts and take steps to address them to ensure the long-term success of your business.

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