Stay Informed with the Latest SME Statistics for Business Owners

Dear Entrepreneurs and Business Owners,

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I hope this message finds you well and thriving in your business endeavors. Today, I want to share some insightful statistics about Small and Medium-sized Enterprises (SMEs) that are shaping the business landscape worldwide. These statistics offer a glimpse into the exciting and challenging world of entrepreneurship, and they might just spark some new ideas or strategies for your own ventures.

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General SME Statistics:

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There are about 582 million entrepreneurs on the earth

Entrepreneurship is on the rise globally, and the pandemic has triggered a surge in business start-ups. For instance, the USA experienced a 95% increase in new business applications in 2020.

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Small businesses make up 90% of all global companies

?Small and Medium Enterprises (SMEs) are the backbone of the world economy, providing 50% of jobs globally. However, many SMEs still face challenges in accessing financing.

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There are an estimated 334 million companies worldwide

?In 2023, there are approximately 334 million companies globally, showing marginal growth from 2021.

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Around 50% of small businesses start at home

?The number of home-based startups is on the rise, a trend that has been growing since the COVID-19 pandemic.

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The most popular reason for starting a business is to be your own boss

Nearly 29% of entrepreneurs are motivated by the desire to be their own boss, while other common reasons include pursuing a passion and dissatisfaction with traditional employment.

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Small Business Owners Statistics

• 44% of small business owners are between 39 and 54 years old. Generation X represents 44% of small business owners, while baby boomers own around 41% of small businesses. Millennials are slowly making their mark in the business world, currently accounting for approximately 12% of small business owners.
• About 54% of small business owners have a bachelor's degree or higher. Education plays a significant role in entrepreneurship, with the majority of business owners having at least a bachelor's degree.
• 56% of small business owners struggle to find suitable employees. Finding the right talent remains a significant challenge for more than half of small business owners, according to research by Indeed.
• Working overtime is common for small business owners. Around 81% of business owners work overtime, including weekends, to keep up with their busy schedules.?
• The number one cause of business failure is low sales and cash flow. Low sales and cash flow are the leading causes of business closures, with 42% of businesses citing no market fit as another reason for failure.
• 92% of small business owners don’t regret starting their company. Despite the challenges, the vast majority of business owners do not regret their entrepreneurial journey.
• Only 63% of businesses continued to be profitable during COVID-19. The pandemic had a profound impact on businesses, with only 63% remaining profitable in 2020.
• 60% of small businesses closed down during the pandemic. The pandemic led to the closure of around 60% of small businesses, creating immense challenges for business owners.
• Small businesses employ 61.7 million workers in the United States alone.
• 72% of small businesses have websites, recognizing the importance of establishing an online presence.
• 96% of small businesses use social media for marketing and customer engagement.

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?SME Trend Statistics

• ?30% of pandemic entrepreneurs say they’ll never open a physical store
• The food and restaurant industry saw a 12% growth rate in 2020.
• 72% of small business owners feel optimistic about the future
• VC in Africa tech is expected to reach $4.7 billion in 2022

I encourage you to continue exploring the world of entrepreneurship, adapt to changing trends, and consider the valuable insights shared in these statistics to enhance your business. If you'd like to delve deeper into any of these topics or share your thoughts, feel free to respond to this newsletter or explore other relevant resources.

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I wish you continued success in your entrepreneurial journey.

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Warm regards,

?Adepetun Opeyemi

Business Consultant