GITNUXREPORT 2026

Small Business Owner Statistics

Small businesses drive the U.S. economy while navigating inflation, labor shortages, and embracing technology for growth.

Min-ji Park

Research Analyst focused on sustainability and consumer trends.

First published: Feb 13, 2026

Our Commitment to Accuracy

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Statistic 1

35% of small business bankruptcies were due to cash flow issues in 2023.

Statistic 2

47% of small businesses cited labor shortages as top challenge in 2023 NFIB survey.

Statistic 3

Inflation impacted 89% of small businesses, raising costs by 12% on average in 2023.

Statistic 4

62% of small businesses struggled with finding skilled workers, turnover at 18% in 2023.

Statistic 5

Regulatory compliance costs small businesses $12,000 per employee annually in 2023.

Statistic 6

41% of small businesses faced cybersecurity threats, 22% suffered breaches in 2023.

Statistic 7

Supply chain disruptions affected 73% of small manufacturers, delaying 25% of orders in 2023.

Statistic 8

55% of small businesses reported rising insurance premiums by 20% average in 2023.

Statistic 9

Access to capital was a barrier for 29% of small businesses seeking loans in 2023.

Statistic 10

68% of small retailers faced competition from online giants, losing 15% market share in 2023.

Statistic 11

Energy costs rose 28% for small businesses, impacting 82% of operations in 2023.

Statistic 12

37% of small businesses dealt with payment delays averaging 45 days from clients in 2023.

Statistic 13

Tax complexity frustrated 76% of small business owners, spending 20 hours/month on compliance.

Statistic 14

49% of small businesses experienced wage pressure, increasing payroll 9% in 2023.

Statistic 15

Healthcare costs for small business employees rose 7.5% to $15,000 per worker in 2023.

Statistic 16

53% of small businesses cited marketing difficulties, with only 40% ROI on digital ads in 2023.

Statistic 17

Natural disasters impacted 12% of small businesses, costing $50k average recovery in 2023.

Statistic 18

44% of small businesses struggled with technology adoption, lagging 2 years behind large firms.

Statistic 19

Rent increases affected 61% of small businesses by 14% average in urban areas 2023.

Statistic 20

31% of small businesses faced intellectual property theft risks in 2023.

Statistic 21

Employee mental health issues rose 25%, absenteeism up 10% for small firms in 2023.

Statistic 22

67% of small businesses reported increased competition from gig economy platforms.

Statistic 23

Compliance with ESG regulations challenged 38% of small businesses in 2023.

Statistic 24

25% of small businesses experienced fraud attempts, losses averaging $25k in 2023.

Statistic 25

Transportation costs surged 22% for small logistics firms in 2023.

Statistic 26

Succession planning was unprepared for 70% of small businesses over 20 years old in 2023.

Statistic 27

In 2023, 33.2 million small businesses operated in the United States, accounting for 99.9% of all businesses.

Statistic 28

Small business owners are predominantly aged 50-64, making up 51% of owners according to 2022 data.

Statistic 29

Women-owned small businesses increased by 94% from 2012 to 2019, reaching 13 million firms.

Statistic 30

12.3% of small business owners in the U.S. are Hispanic or Latino as of 2022 Census data.

Statistic 31

Black-owned small businesses grew 43% from 2017 to 2020, totaling 3.5 million firms.

Statistic 32

82% of small business owners have at least some college education, per 2023 NFIB survey.

Statistic 33

Veteran-owned small businesses number 1.1 million, representing 7% of small firms in 2023.

Statistic 34

Asian-owned small businesses account for 10.5% of employer firms with 2.8 million owners in 2022.

Statistic 35

58% of small business owners are married, compared to 50% of the general population in 2023.

Statistic 36

Rural small business owners make up 20% of total owners, with 6.6 million firms in 2022.

Statistic 37

45% of small business owners are first-generation entrepreneurs per 2023 Kauffman Foundation report.

Statistic 38

Immigrant small business owners operate 28% of new businesses started in 2023.

Statistic 39

64% of small business owners in the U.S. are men, down from 70% in 2012 per Census data.

Statistic 40

Native American-owned small businesses total 91,000 employer firms as of 2022 ABS.

Statistic 41

35% of small business owners have 20+ years of industry experience in 2023 NFIB poll.

Statistic 42

LGBTQ+-owned small businesses number over 1.4 million, employing 2.2 million in 2023.

Statistic 43

22% of small business owners under 35 years old started post-2020 pandemic.

Statistic 44

Pacific Islander-owned firms represent 0.3% of small businesses with 10,000 owners in 2022.

Statistic 45

71% of small business owners work full-time in their business averaging 52 hours/week in 2023.

Statistic 46

Multi-generational family-owned small businesses comprise 30% of all small firms in 2023.

Statistic 47

15% of small business owners hold advanced degrees (Master's or higher) per 2022 Fed survey.

Statistic 48

Small business owners in tech sectors are 40% more likely to be under 40 than in retail.

Statistic 49

28% of small business owners are parents of children under 18 living at home in 2023.

Statistic 50

Disabled small business owners operate 4.7 million firms, 10% of total in 2022.

Statistic 51

62% of small business owners live in suburban areas, 25% urban, 13% rural per 2023 data.

Statistic 52

Second-generation small business owners increased 15% since 2019 to 4 million in 2023.

Statistic 53

18% of small business owners are over 65 and still actively managing in 2023.

Statistic 54

Female small business owners in STEM fields grew 25% from 2019-2023 to 1.2 million.

Statistic 55

9% of small business owners are active military personnel or spouses in 2023.

Statistic 56

Urban small business owners average 48 years old vs. 54 in rural areas per 2022 Census.

Statistic 57

Small businesses generate 44% of U.S. economic activity, with $18.6 trillion in receipts in 2022.

Statistic 58

Average small business revenue was $1.2 million in 2023, varying by industry from $500k retail to $5m construction.

Statistic 59

78% of small businesses reported profit margins of 10% or higher in Q4 2023 NFIB index.

Statistic 60

Small business loan default rates dropped to 2.1% in 2023 from 4.5% in 2020.

Statistic 61

52% of small businesses used credit cards for financing, averaging $45,000 debt in 2023.

Statistic 62

Median small business net worth grew 8% to $450,000 in 2023 per Fed SCF data.

Statistic 63

Construction small businesses averaged $2.8 million revenue with 15% profit in 2022.

Statistic 64

41% of small businesses saved over $10,000 in taxes via Section 179 deductions in 2023.

Statistic 65

Average small business payroll expense was 25% of revenue, $300k for 10-employee firms in 2023.

Statistic 66

65% of small businesses reported cash reserves for 3+ months operating expenses in 2023.

Statistic 67

E-commerce small businesses saw 22% revenue growth to $1.1 million average in 2023.

Statistic 68

Small business R&D tax credits averaged $50,000 savings for qualifying firms in 2022.

Statistic 69

33% of small businesses accessed SBA loans totaling $35 billion in FY2023.

Statistic 70

Food service small businesses averaged 8% profit margins despite 12% cost inflation in 2023.

Statistic 71

27% of small businesses reported EBITDA over 15% in 2023 Goldman Sachs survey.

Statistic 72

Average small business equipment financing was $150,000 at 7.2% interest in 2023.

Statistic 73

Retail small businesses had $950k average sales with 6.5% net profit in 2022 Census.

Statistic 74

56% of small businesses funded expansions with retained earnings averaging $200k in 2023.

Statistic 75

Health care small businesses averaged $1.8 million revenue, 12% margins in 2023.

Statistic 76

Small business bad debt write-offs totaled 1.2% of receivables in 2023.

Statistic 77

48% of small businesses used invoice factoring, recovering 92% of invoice value in 2023.

Statistic 78

Professional services firms averaged $1.5m revenue, 18% profit in 2022.

Statistic 79

Small business interest expenses rose 15% to $45k average due to rate hikes in 2023.

Statistic 80

62% of small businesses met revenue goals in 2023, up from 55% in 2022.

Statistic 81

Manufacturing small businesses reported $3.2m average sales with 10% margins in 2023.

Statistic 82

Small business venture debt averaged $750k at 12% interest for 20% of tech startups in 2023.

Statistic 83

59% of small businesses planned to hire in 2024, up 5% from 2023 levels.

Statistic 84

24% revenue growth expected by small businesses in high-tech sectors for 2024.

Statistic 85

42% of small businesses expanded operations or locations in 2023.

Statistic 86

Exporting small businesses grew 11% to 1 million firms contributing $500b in 2023.

Statistic 87

36% of small businesses adopted AI tools, boosting productivity 15% in 2023.

Statistic 88

Franchised small businesses expanded 7% faster than independents in 2023.

Statistic 89

51% of small businesses invested in e-commerce, sales up 28% YoY in 2023.

Statistic 90

Green initiatives adopted by 29% of small businesses, attracting 20% more customers.

Statistic 91

63% of small businesses plan capital investments over $50k in 2024.

Statistic 92

Tech startup small businesses raised $120b in venture capital in 2023.

Statistic 93

18% job growth in small business employment post-2022 recovery phase.

Statistic 94

45% of small businesses diversified products, increasing revenue 12% average.

Statistic 95

Partnerships formed by 34% of small businesses led to 16% sales uplift in 2023.

Statistic 96

27% of small businesses entered new markets, geographic expansion up 10%.

Statistic 97

Automation tools implemented by 40%, reducing costs 11% for small firms.

Statistic 98

52% of small businesses reported customer base growth of 15%+ in 2023.

Statistic 99

M&A activity among small businesses rose 14% to 2,500 deals in 2023.

Statistic 100

31% of small businesses scaled to 50+ employees from under 10 in 3 years.

Statistic 101

Subscription models adopted by 23%, recurring revenue up 35% in 2023.

Statistic 102

66% plan R&D spending increase for innovation in 2024.

Statistic 103

Social media drove 25% of new customer acquisition for 70% of small businesses.

Statistic 104

19% international sales growth for exporting small businesses in 2023.

Statistic 105

Employee training investments up 22%, retention improved 18%.

Statistic 106

48% of small businesses achieved 10%+ YoY revenue growth in 2023.

Statistic 107

Cloud migration by 55%, operational efficiency up 20%.

Statistic 108

39% of small businesses launched new products, 60% successful market entry.

Statistic 109

71% of small businesses use CRM software, sales pipeline growth 17%.

Statistic 110

28% employee headcount increase planned for 2024 by optimistic owners.

Statistic 111

44% of small business owners handle daily accounting manually, using QuickBooks or similar.

Statistic 112

Average small business has 5.6 full-time employees and 2.1 part-time in 2023.

Statistic 113

67% of small businesses operate from home or mixed locations post-2023.

Statistic 114

Inventory turnover ratio averages 6.2 for retail small businesses in 2023.

Statistic 115

82% use digital payments, with 45% cashless transactions in 2023.

Statistic 116

Customer service handled via phone/email by 76%, chatbots by 24%.

Statistic 117

53% of small businesses outsource HR functions like payroll.

Statistic 118

Average order fulfillment time is 2.3 days for small e-commerce firms.

Statistic 119

61% use social media for marketing, posting 4x/week average.

Statistic 120

Vendor management involves 12 suppliers average per small business.

Statistic 121

49% implement weekly team meetings, 70% monthly performance reviews.

Statistic 122

POS systems used by 88% of retail small businesses in 2023.

Statistic 123

34% have formal employee handbooks, 66% informal policies.

Statistic 124

Average small business website traffic is 1,200 unique visitors/month.

Statistic 125

57% track KPIs daily, top metrics: revenue, customer acquisition cost.

Statistic 126

Delivery logistics managed in-house by 42%, outsourced 58%.

Statistic 127

73% offer employee benefits like health insurance or 401k.

Statistic 128

Quality control processes formalized in 55% of manufacturing small businesses.

Statistic 129

66% use email marketing, average open rate 21% for newsletters.

Statistic 130

Safety training provided annually to 81% of employees in small firms.

Statistic 131

29% automate scheduling with tools like When I Work.

Statistic 132

Customer retention rate averages 78% for service-based small businesses.

Statistic 133

51% conduct supplier audits yearly, reducing costs 8%.

Statistic 134

Remote work policies in 69%, hybrid model preferred by 55%.

Statistic 135

43% use project management software like Asana or Trello.

Statistic 136

Waste reduction initiatives cut operational costs 12% for 37% of firms.

1/136

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America's small businesses aren't just the backbone of the economy—they're a vibrant and diverse tapestry of 33.2 million owner-operated dreams, where women-led firms have nearly doubled, minority ownership is soaring, and a new generation of entrepreneurs is forging a dynamic future.

Key Takeaways

In 2023, 33.2 million small businesses operated in the United States, accounting for 99.9% of all businesses.
Small business owners are predominantly aged 50-64, making up 51% of owners according to 2022 data.
Women-owned small businesses increased by 94% from 2012 to 2019, reaching 13 million firms.
Small businesses generate 44% of U.S. economic activity, with $18.6 trillion in receipts in 2022.
Average small business revenue was $1.2 million in 2023, varying by industry from $500k retail to $5m construction.
78% of small businesses reported profit margins of 10% or higher in Q4 2023 NFIB index.
35% of small business bankruptcies were due to cash flow issues in 2023.
47% of small businesses cited labor shortages as top challenge in 2023 NFIB survey.
Inflation impacted 89% of small businesses, raising costs by 12% on average in 2023.
59% of small businesses planned to hire in 2024, up 5% from 2023 levels.
24% revenue growth expected by small businesses in high-tech sectors for 2024.
42% of small businesses expanded operations or locations in 2023.
44% of small business owners handle daily accounting manually, using QuickBooks or similar.
Average small business has 5.6 full-time employees and 2.1 part-time in 2023.
67% of small businesses operate from home or mixed locations post-2023.

Small businesses drive the U.S. economy while navigating inflation, labor shortages, and embracing technology for growth.

Challenges

35% of small business bankruptcies were due to cash flow issues in 2023.
47% of small businesses cited labor shortages as top challenge in 2023 NFIB survey.
Inflation impacted 89% of small businesses, raising costs by 12% on average in 2023.
62% of small businesses struggled with finding skilled workers, turnover at 18% in 2023.
Regulatory compliance costs small businesses $12,000 per employee annually in 2023.
41% of small businesses faced cybersecurity threats, 22% suffered breaches in 2023.
Supply chain disruptions affected 73% of small manufacturers, delaying 25% of orders in 2023.
55% of small businesses reported rising insurance premiums by 20% average in 2023.
Access to capital was a barrier for 29% of small businesses seeking loans in 2023.
68% of small retailers faced competition from online giants, losing 15% market share in 2023.
Energy costs rose 28% for small businesses, impacting 82% of operations in 2023.
37% of small businesses dealt with payment delays averaging 45 days from clients in 2023.
Tax complexity frustrated 76% of small business owners, spending 20 hours/month on compliance.
49% of small businesses experienced wage pressure, increasing payroll 9% in 2023.
Healthcare costs for small business employees rose 7.5% to $15,000 per worker in 2023.
53% of small businesses cited marketing difficulties, with only 40% ROI on digital ads in 2023.
Natural disasters impacted 12% of small businesses, costing $50k average recovery in 2023.
44% of small businesses struggled with technology adoption, lagging 2 years behind large firms.
Rent increases affected 61% of small businesses by 14% average in urban areas 2023.
31% of small businesses faced intellectual property theft risks in 2023.
Employee mental health issues rose 25%, absenteeism up 10% for small firms in 2023.
67% of small businesses reported increased competition from gig economy platforms.
Compliance with ESG regulations challenged 38% of small businesses in 2023.
25% of small businesses experienced fraud attempts, losses averaging $25k in 2023.
Transportation costs surged 22% for small logistics firms in 2023.
Succession planning was unprepared for 70% of small businesses over 20 years old in 2023.

Challenges Interpretation

Running a small business in 2023 felt less like pursuing the American dream and more like trying to assemble a leaky boat while sailing it, with everyone from the bank to your best employee handing you a new bucket to bail with.

Demographics

In 2023, 33.2 million small businesses operated in the United States, accounting for 99.9% of all businesses.
Small business owners are predominantly aged 50-64, making up 51% of owners according to 2022 data.
Women-owned small businesses increased by 94% from 2012 to 2019, reaching 13 million firms.
12.3% of small business owners in the U.S. are Hispanic or Latino as of 2022 Census data.
Black-owned small businesses grew 43% from 2017 to 2020, totaling 3.5 million firms.
82% of small business owners have at least some college education, per 2023 NFIB survey.
Veteran-owned small businesses number 1.1 million, representing 7% of small firms in 2023.
Asian-owned small businesses account for 10.5% of employer firms with 2.8 million owners in 2022.
58% of small business owners are married, compared to 50% of the general population in 2023.
Rural small business owners make up 20% of total owners, with 6.6 million firms in 2022.
45% of small business owners are first-generation entrepreneurs per 2023 Kauffman Foundation report.
Immigrant small business owners operate 28% of new businesses started in 2023.
64% of small business owners in the U.S. are men, down from 70% in 2012 per Census data.
Native American-owned small businesses total 91,000 employer firms as of 2022 ABS.
35% of small business owners have 20+ years of industry experience in 2023 NFIB poll.
LGBTQ+-owned small businesses number over 1.4 million, employing 2.2 million in 2023.
22% of small business owners under 35 years old started post-2020 pandemic.
Pacific Islander-owned firms represent 0.3% of small businesses with 10,000 owners in 2022.
71% of small business owners work full-time in their business averaging 52 hours/week in 2023.
Multi-generational family-owned small businesses comprise 30% of all small firms in 2023.
15% of small business owners hold advanced degrees (Master's or higher) per 2022 Fed survey.
Small business owners in tech sectors are 40% more likely to be under 40 than in retail.
28% of small business owners are parents of children under 18 living at home in 2023.
Disabled small business owners operate 4.7 million firms, 10% of total in 2022.
62% of small business owners live in suburban areas, 25% urban, 13% rural per 2023 data.
Second-generation small business owners increased 15% since 2019 to 4 million in 2023.
18% of small business owners are over 65 and still actively managing in 2023.
Female small business owners in STEM fields grew 25% from 2019-2023 to 1.2 million.
9% of small business owners are active military personnel or spouses in 2023.
Urban small business owners average 48 years old vs. 54 in rural areas per 2022 Census.

Demographics Interpretation

While still largely the domain of older, educated men putting in long hours, today's small business landscape is being reshaped—and enriched—by a rising tide of diverse, resilient founders from veterans to immigrants and second-gen entrepreneurs, proving the American dream is being redrafted in real time by its most driven new authors.

Financials

Small businesses generate 44% of U.S. economic activity, with $18.6 trillion in receipts in 2022.
Average small business revenue was $1.2 million in 2023, varying by industry from $500k retail to $5m construction.
78% of small businesses reported profit margins of 10% or higher in Q4 2023 NFIB index.
Small business loan default rates dropped to 2.1% in 2023 from 4.5% in 2020.
52% of small businesses used credit cards for financing, averaging $45,000 debt in 2023.
Median small business net worth grew 8% to $450,000 in 2023 per Fed SCF data.
Construction small businesses averaged $2.8 million revenue with 15% profit in 2022.
41% of small businesses saved over $10,000 in taxes via Section 179 deductions in 2023.
Average small business payroll expense was 25% of revenue, $300k for 10-employee firms in 2023.
65% of small businesses reported cash reserves for 3+ months operating expenses in 2023.
E-commerce small businesses saw 22% revenue growth to $1.1 million average in 2023.
Small business R&D tax credits averaged $50,000 savings for qualifying firms in 2022.
33% of small businesses accessed SBA loans totaling $35 billion in FY2023.
Food service small businesses averaged 8% profit margins despite 12% cost inflation in 2023.
27% of small businesses reported EBITDA over 15% in 2023 Goldman Sachs survey.
Average small business equipment financing was $150,000 at 7.2% interest in 2023.
Retail small businesses had $950k average sales with 6.5% net profit in 2022 Census.
56% of small businesses funded expansions with retained earnings averaging $200k in 2023.
Health care small businesses averaged $1.8 million revenue, 12% margins in 2023.
Small business bad debt write-offs totaled 1.2% of receivables in 2023.
48% of small businesses used invoice factoring, recovering 92% of invoice value in 2023.
Professional services firms averaged $1.5m revenue, 18% profit in 2022.
Small business interest expenses rose 15% to $45k average due to rate hikes in 2023.
62% of small businesses met revenue goals in 2023, up from 55% in 2022.
Manufacturing small businesses reported $3.2m average sales with 10% margins in 2023.
Small business venture debt averaged $750k at 12% interest for 20% of tech startups in 2023.

Financials Interpretation

While collectively generating nearly half of the nation's economic activity, small businesses reveal a complex portrait of resilience, navigating high-interest debt for growth and celebrating slim but vital profit margins that fuel Main Street more than Wall Street.

Growth

59% of small businesses planned to hire in 2024, up 5% from 2023 levels.
24% revenue growth expected by small businesses in high-tech sectors for 2024.
42% of small businesses expanded operations or locations in 2023.
Exporting small businesses grew 11% to 1 million firms contributing $500b in 2023.
36% of small businesses adopted AI tools, boosting productivity 15% in 2023.
Franchised small businesses expanded 7% faster than independents in 2023.
51% of small businesses invested in e-commerce, sales up 28% YoY in 2023.
Green initiatives adopted by 29% of small businesses, attracting 20% more customers.
63% of small businesses plan capital investments over $50k in 2024.
Tech startup small businesses raised $120b in venture capital in 2023.
18% job growth in small business employment post-2022 recovery phase.
45% of small businesses diversified products, increasing revenue 12% average.
Partnerships formed by 34% of small businesses led to 16% sales uplift in 2023.
27% of small businesses entered new markets, geographic expansion up 10%.
Automation tools implemented by 40%, reducing costs 11% for small firms.
52% of small businesses reported customer base growth of 15%+ in 2023.
M&A activity among small businesses rose 14% to 2,500 deals in 2023.
31% of small businesses scaled to 50+ employees from under 10 in 3 years.
Subscription models adopted by 23%, recurring revenue up 35% in 2023.
66% plan R&D spending increase for innovation in 2024.
Social media drove 25% of new customer acquisition for 70% of small businesses.
19% international sales growth for exporting small businesses in 2023.
Employee training investments up 22%, retention improved 18%.
48% of small businesses achieved 10%+ YoY revenue growth in 2023.
Cloud migration by 55%, operational efficiency up 20%.
39% of small businesses launched new products, 60% successful market entry.
71% of small businesses use CRM software, sales pipeline growth 17%.
28% employee headcount increase planned for 2024 by optimistic owners.

Growth Interpretation

Despite the economic headwinds and existential dread that haunt every owner's dreams, small businesses are not just surviving but staging a remarkably scrappy, tech-infused, and border-crossing expansion, with a side of AI and a green conscience, proving that capitalism's engine still runs best on ambition, caffeine, and a healthy fear of failure.

Operations

44% of small business owners handle daily accounting manually, using QuickBooks or similar.
Average small business has 5.6 full-time employees and 2.1 part-time in 2023.
67% of small businesses operate from home or mixed locations post-2023.
Inventory turnover ratio averages 6.2 for retail small businesses in 2023.
82% use digital payments, with 45% cashless transactions in 2023.
Customer service handled via phone/email by 76%, chatbots by 24%.
53% of small businesses outsource HR functions like payroll.
Average order fulfillment time is 2.3 days for small e-commerce firms.
61% use social media for marketing, posting 4x/week average.
Vendor management involves 12 suppliers average per small business.
49% implement weekly team meetings, 70% monthly performance reviews.
POS systems used by 88% of retail small businesses in 2023.
34% have formal employee handbooks, 66% informal policies.
Average small business website traffic is 1,200 unique visitors/month.
57% track KPIs daily, top metrics: revenue, customer acquisition cost.
Delivery logistics managed in-house by 42%, outsourced 58%.
73% offer employee benefits like health insurance or 401k.
Quality control processes formalized in 55% of manufacturing small businesses.
66% use email marketing, average open rate 21% for newsletters.
Safety training provided annually to 81% of employees in small firms.
29% automate scheduling with tools like When I Work.
Customer retention rate averages 78% for service-based small businesses.
51% conduct supplier audits yearly, reducing costs 8%.
Remote work policies in 69%, hybrid model preferred by 55%.
43% use project management software like Asana or Trello.
Waste reduction initiatives cut operational costs 12% for 37% of firms.

Operations Interpretation

The modern small business owner is a one-person orchestra juggling a spreadsheet, a social media feed, and a cardboard box from their living room, all while chasing faster deliveries and happier employees, proving that success today is a patchwork of savvy outsourcing, digital hustle, and old-fashioned grit.

Sources & References

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