If you’ve recently started a new business – or even if you are still in the planning process – there are a few important statistics that new business owners should know, particularly those that hail from the U.S. Small Business Administration.
First, for those who may not be familiar, the Small Business Administration, or SBA, helps new and existing small business owners (those companies that have fewer than 500 employees) throughout the United States in a multitude of ways, such as providing access to capital, offering education and technical assistance, and acting as an advocate for these small companies.
When it comes to getting a new business off the ground, there are numerous myths that could be keeping you from moving forward. For instance, it is often touted that starting a new business is risky – and that the majority of new businesses fail.
In reality, though, while any new venture may have some definitive risks, roughly 67% of new businesses survive their first two years – and half of all businesses will survive for at least five years. In addition, the longer that a company has been in business, the more likely it is to stay in business going forward. (This could be akin to the old saying of “an object in motion remains in motion…”)
So, while the first few years of business may not be easy, they can certainly be very worthwhile – particularly if you are building a good, strong foundation for your company. According to stats from the Small Business Administration, between mid-2009 and mid-2013, 60% of jobs in the U.S. were created from small companies. Given that, there are many new business owners who must be doing something right!
In addition, based on recent SBA research, in 2016 there were approximately 28.8 million small businesses in the U.S. and these businesses provided employment for nearly 57 million people from coast to coast.
Based on these criteria, small businesses account for more than 99% of all businesses in the United States. With that in mind, if you own a business with fewer than 500 employees, you are definitely in very good company.
During the rough times – as well as the good – it can be helpful to swap stories, vent your frustrations, and / or to get (or provide) advice from other business owners. Doing so can certainly help you to feel like even though getting your company up and running may be tough, others are also in the same boat as you are.
<Join us> at the Startup Forums. Here you will find new and existing business owners of all kinds – as well as kind words from your peers who know what it’s like to be aiming for business success.
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