Small businesses fuel the American economy, driving creativity, creating new jobs, and bolstering communities everywhere. Whether you’re interested in starting a small business or you’re curious about the lives of entrepreneurs, these ten facts will fascinate you and give you a look into the state of small businesses in 2025.
10 Small Business Facts
1. Small businesses comprise 99.9% of all U.S. business ventures. (Source)
This is approximately 33.2 million businesses. This statistic might be surprising since huge corporations are generally much more visible than small businesses. Nevertheless, small businesses drive the majority of our economic activity.
2. Geography can dramatically impact small business owners’ earnings. (Source)
Small business owners in Washington state see the most success, earning an average of $144,941 a year, more than 127.2% of the national average salary. This proves that location can certainly impact an entrepreneur’s success. Washington’s tech-centric economy and business-friendly tax policies clearly benefit business owners.
3. Small businesses create 1.5 million jobs in the U.S. every year. (Source)
Small businesses account for 64% of new jobs in the United States. Small businesses are expanding the workforce and powering our economy in a wide range of industries and locations.
4. 20% of small businesses fail within their first year. (Source)
Small business ownership isn’t all sunshine and roses. About 20% of ventures fail in their first year, though this statistic is much lower than many common myths stating that 80% to 90% of them fail in their first year.
5. There are many female-owned small businesses. (Source)
Entrepreneurship is more gender equitable than other positions and industries. Women own over 12 million businesses in the United States and employ over 10 million people. Female entrepreneurs make a giant contribution to the American economy.
6. Cyberattacks threaten small businesses constantly. (Source)
About 46% of all cyber attacks target small businesses with fewer than 1,000 employees. These attacks can have devastating impacts on these businesses. Clearly, cybersecurity is an important small business investment.
7. Small businesses are adopting AI in their processes. (Source)
Approximately 38% of small to medium businesses in the U.S. are using AI for activities like customer support, marketing, and recruitment. Small businesses often look for ways to accomplish tasks with low investment, so it’s no surprise they’ve found ways to benefit from AI.
8. Small businesses have provided jobs for 61.2 million Americans. (Source)
Small businesses employ 46.8% of American workers. That’s almost half the workforce depending on small businesses to earn a living. The importance of small businesses to our economy can’t be understated!
9. Most small businesses have a single-person staff. (Source)
The “solopreneur” accounts for 81% of small business owners. That means only one person manages all operations of the business. Recent years have seen a rising trend of home-based businesses and independent contractors, reflecting this fact.
10. In 2025, most small business owners felt optimistic about their future. (Source)
Nearly 73% of small business owners said they felt optimistic about the economic future of their ventures heading into 2025. This statistic highlights the qualities we see in small business owners like resilience, growth, and innovation.
Featured image photo credit: Tima Miroshnichenko.
