Entrepreneurship is the backbone of economic growth and innovation. Despite the risks, entrepreneurs continue to start new ventures with hopes of success. The latest statistics provide insight into the state of entrepreneurship.
Key Entrepreneur Statistics
- There are about 582 million entrepreneurs globally as of 2021
- 31 million people in the US were self-employed as of 2020
- About 9% of college grads worldwide want to become entrepreneurs within 5 years of graduation
- The US ranks #1 out of 137 countries on the Global Entrepreneurship Index
- 19.6% of self-employed Americans work in construction/trades
- 55% of Americans believe they can succeed as entrepreneurs
- The US national average fear of failure rate is 33%
- Healthcare/social assistance expected to see 21% small business growth through 2024
Detailed US Entrepreneur Statistics
The American dream often includes ambitions of starting your own successful small business. How attainable is entrepreneurial success in the US?
1. 56 American billionaires were created during the pandemic
While most suffered losses, some saw immense profits. Top entrepreneurs like Elon Musk and emerging sectors like food delivery benefited.
2. There were about 659 billionaires total in the US as of 2020
80% of American billionaires are self-made first generation rather than inheriting their wealth. About 19% operate in investing/banking.
3. Approximately 8 million minority-owned businesses exist
Minority entrepreneurs hire about 8 employees on average, compared to 10 employees in non-minority owned firms.
4. The US Global Entrepreneurship Index score is 83.6
This top score reflects strong national support systems and infrastructure for launching new ventures.
5. 19.6% of self-employed Americans work in construction/trades
About 1.6 million entrepreneurs are in fields like contracting, plumbing, and related hands-on work.
6. 55% of Americans believe they can succeed with a startup
Confidence levels vary by city, with higher optimism visible in areas like Miami and Detroit.
7. The US national average fear of failure rate is 33%
Again this varies greatly between different states and cities across America.
8. Healthcare/social assistance expected to see 21% small business growth through 2024
Predictions envision over 20% expansion in healthcare entrepreneurship in coming years.
9. 62% of US small businesses do not have employees
Only about 10% of small business entrepreneurs have over 5 employees. 28% have 1-5 employees.
Worldwide Entrepreneur Statistics
How does American entrepreneurship compare globally? What countries lead and lag when it comes to startup activity and support systems?
10. 9% of college grads worldwide want to launch startups within 5 years
This entrepreneurial ambition is highest in emerging Latin American markets and developing nations.
11. There are approximately 582 million entrepreneurs globally
Raw startup numbers alone don‘t fully capture real economic impacts from sustainable, mature ventures.
12. Chad, Burundi and Mauritania rank lowest on the Global Entrepreneurship Index
Scores of 9.0, 10.9, and 11.8 reflect major challenges in fostering local entrepreneurship.
13. Switzerland nearly matches the US at #2 with a score of 80.4
Switzerland and other innovation leaders like Canada and Sweden rank highly.
General Global Entrepreneur Statistics
Beyond geographic data, what does today‘s entrepreneurship landscape look like demographically?
14. There are 71 women entrepreneurs globally per 100 men entrepreneurs
The gender gap is slowly narrowing as women‘s business leadership grows more prominent.
15. 30% of US small business owners have a high school diploma or less
At the other end, 4% of American entrepreneurs have completed doctorate degrees.
16. Nearly 12 million women-owned small businesses operate in the US
Women-run startups in America generate $1.7 trillion in revenue and employ 9 million workers.
17. Approximately 64% of US entrepreneurs are Caucasian
14% are African American, 8% Hispanic/Latino, and 14% other minority ethnic groups.
Benefits and Challenges of Entrepreneurship
Do the rewards of business ownership outweigh the risks and difficulties? Here are key statistics on both aspects.
18. 71% of self-employed people report high job satisfaction
Satisfaction is 61% among conventionally employed – a 10% difference favoring entrepreneurs.
19. 70% of startups fail pre-maturity due to premature rapid expansion
Premature scaling without market validation is a common downfall.
20. 97% of entrepreneurs do not wish to return to traditional employment
Once accustomed to startup ownership freedom, few entrepreneurs turn back.
21. 27% of entrepreneurs struggle most with finding reliable contractors
22% have trouble securing funding, 23% attracting clients initially.
Women-Owned Small Business Statistics
Female entrepreneurs are strong drivers within the small business economy. Their representation and impact continues rising.
22. Top 5 sectors for women-owned startups:
- Healthcare/social assistance
- Hospitality/food services
- Administrative/support services
- Professional/technical services
- Retail trade
23. Women entrepreneurs by demographic:
- 36.8% American Indian/Alaska Native
- 34.7% African American
- 26.8% Asian
- 25.5% Hispanic
- 19.8% White/Caucasian
24. 42% of women-owned small businesses opened in the past 5 years
40% have operated for over 11 years and employ most workers.
25. Hawaii has the highest women’s business ownership at 24.7%
Several other states including Virginia, Colorado, Florida follow closely behind in female leadership.
Final Thoughts
Entrepreneurship carries risk but enormous upside for income, autonomy and purpose. While obstacles like funding and reliability impact many startups, passion and perseverance can lead to great rewards. Small businesses will continue driving local job growth and fueling global economic engines.
Bold men and women with vision and grit will keep stepping up to launch innovative new companies. America fosters an especially fertile environment for entrepreneurs looking to build fortunes from their ideas and efforts. But perspectives continue expanding, as women entrepreneurs and minorities increase their representation and influence.
Technology and trends will dictate the most promising sectors for aspiring business owners targeting new opportunities. But the fundamentals remain consistent – entrepreneurship takes courage, resilience and calculated risk-taking. Those bold enough to take the leap can change their lives and the world around them through the power of their own visionary business ventures.