Small Business Facts You Need to Know

rsz_small_business

The beauty of capitalism is that you are free to make your own money anyway you please. As long as it is not an illegal business, you are able to open a store or restaurant, create an invention, or dive into any legal industry you want. Small business is often seen as the bloodline of the American economy. If you want to compare it to sports, a place like McDonald’s can be seen as the Yankees of fast food with all of their capital and popularity, while a pair of Astros tickets can be seen as your local mom and pop burger joint. Here is a list of facts about small businesses you need to know.

Small businesses are defined as businesses with fewer than 500 employees.

There are 28.8 million small businesses in the United States.

Small businesses account for 99.7% if all businesses.

66% of small businesses survive their first two years.

50% of small businesses survive five years.

33% of small businesses survive 10 years.

60% of restaurants close within the first year.

82% of small businesses fail because of cash flow problems.

Top three problems small businesses face taken by a 2015 survey by the National Association of Small Businesses: economic uncertainty, the cost of health insurance benefits, and a decline in customer spending. Government regulations was a close fourth.

75% of loans come from business loans, credit cars, and line of credit.