Small-Business Statistics: Numbers to Know for 2023

Small business owners are the backbone of even the most developed economies. When large multinational corporations brought currencies to their knees and collapsed economies, small businesses saved the day. 

According to the World Bank, small businesses have saved the day for a while.

With this in mind, what can we learn about these economy-saving ventures? Let's explore this next: 

Small businesses dominate the market

Here are some interesting business statistics to think about:

• 90% - The percentage of businesses that small businesses represent worldwide. And 99.9 % (33.2 million) of the businesses in the USA are small businesses.
• 40% - Small businesses account for almost half of all employment worldwide. This is excellent news for the small business owner!
• 40% - Formalized small and medium enterprises contribute up to 40% of the gross domestic product (GDP) in emerging economies.
• 70% - The percentage of jobs in emerging economies created by small businesses.
• 600 million - The number of jobs small businesses would need to create by 2030 to absorb the global demand.

In the USA, small businesses employ nearly half of all employees. However, according to Forbes, almost 80% of them are run by a single owner and have no employees.

All of these point to one thing: small businesses are not only prolific but highly impactful!

The struggle for funding

However, not all is rosy in US business.

Most small businesses face financial challenges. And according to the International Finance Corporation (IFC) Micro, Small, and Medium Enterprises (MSME) Gap Assessment Report, funding remains top of the list of challenges.

• USD 5.2 trillion - The annual funding gap for 65 million small businesses worldwide. This gap is higher if informal small businesses are to be considered.
• 50% - As someone with your own business, there's a 50% chance that you won't have access to proper credit facilities.

Because small businesses are less likely to be able to obtain bank loans than large firms, they are forced to rely on internal funds, or cash from friends and family, to launch and run their enterprises.

Striking digital revolution statistics

In this digital era, it's adapt or die. Don't believe me? Check out these top small business statistics:

• 71% - The number of small business leaders who say their customers expect online transactions.
• 50% - The answer to how many small businesses embrace digital technology. Over the past year, small businesses have accelerated sales and customer service technology investments.
• 25% - The number of small businesses that currently use artificial intelligence for various purposes, including chatbots, task automation, and predictive analytics.
• 86% - The number of small business owners believe technology helped their businesses survive the pandemic.

And these statistics are only going to improve with time. It seems we should adapt our business strategy to suit the digital era.

2023: challenged but not swayed

Naturally, every year presents unique challenges. Rest assured, however, that 2023 holds immense potential for small businesses. This global economy, among other things, offers good opportunities for growth and new ventures. It's time to become my own boss and foster economic growth. 

Just be prepared to fund yourself, and make sure to get online!