General Facts Flashcards
What is a small business, as defined by the SBA?
An independent business having fewer than 500 employees.
How many small businesses are there in the US?
In, 2013, there were 28.8 million small businesses.
- 80pc, or 23 million, had no employees.
- 20pc, or 5.8 million, had paid employees.
How many large businesses are the in the US?
18,600 large business
How many public companies are there in the US?
Listed companies reached a high of 7,322. That number today is down almost by half to 3,700 and is more than 1,000 lower than in 1975.
How big is the role of small businesses in the US economy?
Small businesses comprise:
- 99.9% of all firms
- 99.7% of firms with paid employees
- 97.7% of exporting firms (297k small exporting firms)
- 33.6% of known export value ($471bn out of $930bn)
- 48.0% of private sector employees (57m out of 118m)
- 41.2% of private sector payroll
What is the survival rate of new businesses?
How many last at least 1 yr?
79% of establishments started in 2014 survived until 2015, the highest share since 2005. From 2004 to 2014, an average of 78.5% of new establishments survived one year.
What is the survival rate of new businesses?
How many last at least 5 yrs?
About half (50%) of all establishments survive five years or longer.
What is the survival rate of new businesses?
How many last at least 10 yrs?
About one-third (33%) of establishments survive 10 years or longer.
How many businesses do women own?
In 2012, there were 9.9m women owned firms and 2.5m firms owned equally by men and women.
This means that 12.3m firms, or 45% of all classifiable firms, were at least 50% women-owned.
How many businesses do minorities own?
In 2012, 29.3% of US firms, or 8m businesses were minority owned.
- 12% were Hispanic
- 10% were Black- or African-American
- 7% were Asian
- 1% were American Indians and Alaska Natives
- 0.2% were Native Hawaiians and othe Pacific Islanders.
How many businesses do veterans own? How many of those were employer firms?
In 2012, veterans owned 2.5m businesses, or 9.3% of US firms. About on-fifth of these firms, or 440k, had paid employees.
Is millennial entrepreneurship increasing?
Research shows that in 2014, millennials were less likely to be self-employed than older individuals. This research also shows that the rate of self-employment among individuals age 15 to 34 has been gradually declining since 1990.
What percent of entrepreneurs are immigrants? In which industries are immigrant-owned firms more common?
About 1/7th (14.4%), of business owners are immigrants.
Accommodation and food services (29.1% of owners were foreign born), and transportation and warehousing (27.5%).
How many SBs are family-owned?
What industries have the highest concentration of family owned businesses?
About 1 in five businesses (20%) are family owned.
Management of companies and enterprises (46.4%)
Real estate and rental and leasing (37.3%)
Accommodation and food services (33.2%)
How are most small businesses legally organized?
Nonemployer firms:
- 86.4% are sole props
- 7.4% are partnerships
- 4.7% are S-corps
- 1.6% are C-corps
Employer firms:
- 14.8% are sole prop.
- 11% are partnerships
- 46% are S-corporations
- 20% are Corporations
- 7.4% are Nonprofit
How many employer firms are home based? How about nonemployer firms?
Only 23.3% of employer firms are home based.
About 60% of nonemployer firms are home based.
What percent of firms are franchises?
2.9 percent
Small employ - 5.3%
Small nonemploy - 2.3%
Large - 9.6%
Average number of employees for all SBs?
23.2 employees in 2014
Average startup employees?
5.6 employees in 2014
How are small businesses financed?
The most common source of capital to finance business expansion is”
- Personal and family savings (21%)
- Business profits and assets (5.7%)
- Business loans from fin institutions (4.5%)
- Business credit cards from banks (3.3%)
How many small employer firms are in high-tech industries?
244K in 2012
What are the fastest growing high-tech industries?
- Pharmaceutical and medical manufacturing
- Data processing and hosting services
- Computer systems design services
How are small businesses represented in high-patenting industries?
Small businesses represent about 96% of employer firms in high-patenting manufacturing industries.
How many small businesses are owned by people ages 50 and up? How many are owned by individuals under the age of 35?
52% of owners are above age 50.
Only 16% have owners under age 35
What percentage of business owners are in the country on a visa or a work permit?
9%
What percentage of SB owners own their own homes?
77%
On average, how much higher are SB owner’s income compared to employees?
21% higher
What is the average age of someone living in the US?
52 yrs old
What percentage of SBs use no startup capital?
Nonemployer: 33%
Employer: 12%
What are the main reasons small businesses seek financing?
- Starting a business
- Purchasing inventory
- Expanding the business
- Strengthening the firm
How are VC investments distributed in terms of stages?
3% is used for seed financing
30% is used for early stage financing
32% for later stage rounds
35% for expansion stage
