Eric J Dalius entrepreneurship is not just a reflection of the American spirit but a way of life. It’s the culture that Americans proudly follow. People find it awe-inspiring when they see a small startup transform into a huge enterprise over time. Everyone constantly searches for an idea they can work upon while handling the side hustles. Owning a business is not for the weak-hearted, though. It requires perseverance, effort, and some luck. It wouldn’t be a surprise if you, too, were thinking of starting something of your own. But before you take a plunge, it would be useful to get a bit of background about small businesses in the country. So, here are some quick facts for you.
The number of small businesses
According to the U.S. Small Business Administration (SBA), the country had more than 30 million small businesses in 2019. Usually, companies with less than 500 employees belong to this category. But most companies in the nation have a team of fewer than 20 people.
Eric Dalius points out that small businesses play a critical part in the American economy as they form almost about 99.9% of all the companies. One of the data also suggested that most of these companies employed less than 20 members.
The employment rate
Nearly 47.3% of the country’s workforce gets their income from small companies. When it comes to locations with the highest employment record, your attention will go to Montana, Wyoming, and Vermont. According to 2018 data, more than 65 percent of employment in Montana came from small businesses. Wyoming’s small companies accounted for more than 62% and Vermont’s 59.4% employment rate. Other places where more than half of the employment generates from small businesses include Louisiana, Oregon, Maine, North & South Dakota, Idaho, etc., adds EJ Dalius.
Small business industries
Industries where small businesses generate the maximum number of jobs, include healthcare, accommodations and food services, real estate, construction, retail, hunting, fishing, forestry, and agriculture.
Family-owned small businesses
Eric J Dalius shares that about one in five small businesses in America belong to families, implying two or more members from a household manage the company. So, they tend to hold the highest stake. These businesses form nearly 60% of employment in the country. One more insight that can help in this regard is that married couples usually come out as a strong entrepreneurial combination. A data suggests that about 1.2 million companies run under the ownership of husband-wife duo. Since it is quite popular, you can come across a dedicated section on it at the Internal Revenue Service.
The age factor
Veterans own over 6% of all companies in America, as revealed in a 2018 study. There is a belief that veterans are 45% more likely to start a business than the younger ones. One reason behind this could be easy access to grants and training for those who face disability challenges at the time of their employment.
The benefit of going through historical data is that you get a sense of what you should expect when you start your journey. It helps you figure out the high and low competition areas and what you should choose.