Everyone has dreamt of starting their own business based on their own ideas and dreams. With their own business, they aim to break from most of the workplace rules, the politics and everything that might limit their growth. Whether you already own your business or are thinking of starting one, these statistics will help you get an idea of what is happening in the small business world and help you manage your risks.
How many jobs are created by small businesses?
*Small companies create 1.5 million jobs annually and also account for 64 per cent of new jobs created in the US
Small businesses generate the majority jobs in the US. The last year’s statistics show us that these small businesses have been an integral part of the US’s economy and growth. So whether a small business becomes large or not, they equally contribute to economic growth.
Small and Medium sized businesses are major drivers of global economic growth.
*Over 90% of the business population represents small and medium sized businesses.
In the last few years, the SME’s have continued to generate employment and are also key players in contributing to innovation. Their contributions vary widely based on the industries, firms and countries. But if we consider the better access to global markets and improvements in knowledge networks and digitization, the advancements in these areas have made SME’s participate in the global economy.
What is the most common reason for opening your own business?
*55% of the people have said that their biggest motivation for opening their own business was to be their own boss.
There are many reasons why people want to start their own business. But the most common among them was that they wanted to be their own boss.
And the next most popular opinion to start your own business is to follow your passion.
When you start your own business, not only you become your own boss, but also the boss of your time. You can make your own decisions and work on them on your own time. Starting your own business will also give you more freedom in terms of how you work.
What is the biggest challenge for small businesses?
*52% of the people responded that the biggest challenge for small businesses was the labor quality.
In the first few years people start a small business, they have to face a number of challenges that may restrict their potential. Although, among all the other challenges, the top challenges was poor quality of labor.
Other than this, the small business owners also face financial challenges, as they are not backed by a lot of funds. This is where they struggle to figure out how they can manage their finances.