GITNUXREPORT 2026

Small Business Success Statistics

Small business survival depends on strategy, customer focus, and sound finances.

Min-ji Park

Research Analyst focused on sustainability and consumer trends.

First published: Feb 13, 2026

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Statistic 1

Small businesses add 1.5 million jobs annually on average, SBA.

Statistic 2

44% of U.S. private workforce employed by small businesses, SBA.

Statistic 3

High-growth small firms (20%+ annual growth) create 50% of new jobs, Kauffman.

Statistic 4

62% of new jobs from firms less than 5 years old, BLS BED.

Statistic 5

Small businesses grew employment by 1.8M in 2022, ADP.

Statistic 6

78% of small contractors plan to hire in next year, Dodge Data.

Statistic 7

Women-owned small businesses employ 9.4 million, Census.

Statistic 8

Average small business adds 2.3 employees in first 3 years, NFIB.

Statistic 9

Franchises employ 8.9 million, 10% of private workforce, IFA.

Statistic 10

Tech small firms grew jobs 3.2% annually, CompTIA.

Statistic 11

55% of SMBs expanded workforce post-pandemic, Paychex.

Statistic 12

Minority-owned firms employ 8 million, Census ASES.

Statistic 13

1 in 3 small businesses are hiring full-time, Indeed.

Statistic 14

Gazelles (hypergrowth firms) <5 years old create 3M jobs/year, Inc. 5000.

Statistic 15

Retail SMBs average 12 employees, Census County Business Patterns.

Statistic 16

Construction small firms: average 15 employees, BLS.

Statistic 17

Health care SMBs employ avg 10 workers, Census.

Statistic 18

70% of small business job growth from expansions, Fed Reserve.

Statistic 19

Veteran-owned businesses employ 5.8 million, SBA.

Statistic 20

E-commerce SMBs grew employment 25% 2019-2022, eMarketer.

Statistic 21

Manufacturing small firms avg 19 employees, Census.

Statistic 22

42% of SMBs plan to hire more in 2024, Robert Half.

Statistic 23

Professional services SMBs: avg 8 employees, BLS OES.

Statistic 24

Food services small businesses avg 11 employees, Census CBP.

Statistic 25

28% employment growth for top quartile SMBs, Dun & Bradstreet.

Statistic 26

Home services firms avg 6 employees, Thumbtack.

Statistic 27

65% of new jobs from small business expansions, BLS BED 2022.

Statistic 28

Beauty/personal care SMBs avg 5 employees, Census.

Statistic 29

Auto repair small shops avg 7 employees, BLS.

Statistic 30

Poor cash flow management causes 82% of small business failures.

Statistic 31

No market need accounts for 42% of startup failures per CB Insights.

Statistic 32

Competition or lack thereof leads to 19% failures, CB Insights study.

Statistic 33

29% of failed businesses cite running out of cash, per SCORE.

Statistic 34

Inadequate business model causes 17% of small business shutdowns, Forbes.

Statistic 35

Poor marketing contributes to 14% of failures, MarketingProfs survey.

Statistic 36

23% fail due to being outcompeted, Harvard Business School.

Statistic 37

Overestimating market size leads to 13% failures, CB Insights.

Statistic 38

Bad location responsible for 7% of restaurant failures, NRA.

Statistic 39

Pricing/cost issues cause 16% failures, Fundera analysis.

Statistic 40

46% of failures from incompetent management, Small Business Trends.

Statistic 41

Lack of experience in industry: 22% failure rate contributor, BizMiner.

Statistic 42

Ignoring customer needs: 14%, per US Chamber of Commerce.

Statistic 43

Poor financial planning: 18% of closures, NFIB.

Statistic 44

39% fail due to insufficient sales, Entrepreneur.com.

Statistic 45

Debt overload causes 11% failures, Bankrate survey.

Statistic 46

Regulatory burdens contribute to 12% failures, SBA Office of Advocacy.

Statistic 47

Fraud or theft leads to 5% closures, Insurance Journal.

Statistic 48

Pandemic accelerated 20% more closures due to operations issues, Yelp data.

Statistic 49

26% fail from not meeting customer needs, CB Insights.

Statistic 50

Ineffective product: 17%, Startup Genome report.

Statistic 51

Poor team dynamics: 9%, Noam Wasserman study.

Statistic 52

Legal issues: 4% of small business failures, LegalZoom.

Statistic 53

Supply chain disruptions: 8% post-2020, Deloitte survey.

Statistic 54

Cyber attacks cause 6% closures, Verizon DBIR.

Statistic 55

Employee turnover high in 15% failed firms, SHRM.

Statistic 56

Expansion too soon: 13%, per Inc. Magazine.

Statistic 57

Inventory mismanagement: 10%, Retail Dive.

Statistic 58

Advertising overspend: 7%, AdAge survey.

Statistic 59

Succession planning failure: 30% family businesses, Family Business Review.

Statistic 60

Average small business revenue is $44,000 per employee annually, Census.

Statistic 61

30% of small businesses earn over $1 million in revenue, BizMiner.

Statistic 62

Median profit margin for small businesses is 10%, NYU Stern.

Statistic 63

52% of SMBs report profit growth in 2022, NFIB.

Statistic 64

Average annual revenue for U.S. small businesses: $483,000, WiseBusinessPlans.

Statistic 65

Restaurants average $1.04 million revenue, NRA.

Statistic 66

E-commerce small stores average $40,000-$50,000 first year, Shopify.

Statistic 67

40% of small firms have revenue under $100,000, SBA.

Statistic 68

Construction SMBs average $2.2 million revenue, Census.

Statistic 69

25% profit margin typical for software SMBs, SaaS Metrics.

Statistic 70

Retail small businesses: average revenue $1.1 million, IBISWorld.

Statistic 71

Professional services firms: $500,000 median revenue, BLS.

Statistic 72

8% average net profit for U.S. small businesses, FreshBooks.

Statistic 73

Home-based businesses average $45,000 revenue, Home Business Institute.

Statistic 74

Franchise small businesses average 15% higher revenue than independents, FranNet.

Statistic 75

35% of SMBs saw 20%+ revenue growth in 2023, QuickBooks.

Statistic 76

Manufacturing SMBs: $3.5 million average revenue, Census EC.

Statistic 77

Consulting firms: $250,000 median profit, Management Consulted.

Statistic 78

12% profit margin for high-performing SMBs, Deloitte.

Statistic 79

Online-only SMBs average 28% gross margins, BigCommerce.

Statistic 80

Food trucks average $300,000 annual revenue, Toast.

Statistic 81

Gyms/fitness centers: $500,000 average, IHRSA.

Statistic 82

Landscaping services: $400,000 revenue avg, Lawn & Landscape.

Statistic 83

45% of small businesses are profitable within first year, AltLINE.

Statistic 84

SaaS SMBs: 75-80% gross margins, ProfitWell.

Statistic 85

Beauty salons: $245,000 average revenue, IBISWorld.

Statistic 86

Auto repair shops: $600,000 avg revenue, AAA.

Statistic 87

Coffee shops: $215,000-$1M revenue range, Crimson Cup.

Statistic 88

22% YoY revenue growth for top 10% SMBs, Kabbage.

Statistic 89

Median revenue for 1-4 employee firms: $150,000, Census SUSB.

Statistic 90

Small businesses with 20-99 employees average $5M revenue, BLS QFR.

Statistic 91

Access to capital is a top success factor for 75% of thriving small businesses, per JPMorgan Chase.

Statistic 92

80% of successful small businesses have a formal business plan, according to AltLINE.

Statistic 93

Customer focus drives success in 89% of high-performing SMBs, Bain & Company.

Statistic 94

70% of successful owners have 10+ years industry experience, Kauffman Foundation.

Statistic 95

Digital marketing adoption correlates with 2.8x higher revenue growth, McKinsey.

Statistic 96

93% of small businesses with websites outperform competitors, Chicago Tribune.

Statistic 97

Mentoring increases success odds by 20%, SCORE research.

Statistic 98

60% of successful firms innovate products regularly, OECD.

Statistic 99

Networking leads to 85% of jobs/funding for small biz, LinkedIn survey.

Statistic 100

Financial literacy training boosts survival by 15%, World Bank.

Statistic 101

76% of top performers use cloud accounting, Sage report.

Statistic 102

Employee training improves retention by 34%, SHRM.

Statistic 103

67% success linked to strong leadership, Gallup.

Statistic 104

Diversified revenue streams reduce risk by 25%, Deloitte.

Statistic 105

82% of successful SMBs prioritize customer service, Zendesk.

Statistic 106

Agile management practices increase growth by 30%, Harvard Business Review.

Statistic 107

55% of high-growth firms export, SBA.

Statistic 108

Sustainability practices boost sales by 20%, Nielsen.

Statistic 109

Data analytics use correlates with 5-6% higher productivity, McKinsey.

Statistic 110

Partnerships with larger firms aid 40% of survivors, Fed Small Business Credit Survey.

Statistic 111

72% of successful owners maintain emergency funds, Bank of America.

Statistic 112

CRM software adoption leads to 29% sales increase, Nucleus Research.

Statistic 113

64% attribute success to market research, SurveyMonkey.

Statistic 114

Continuous learning: 92% of successful entrepreneurs read weekly, Tom Corley study.

Statistic 115

Strong online presence: 75% more leads, Google.

Statistic 116

81% of growing firms invest in SEO, Moz.

Statistic 117

Flexible work policies improve satisfaction by 50%, Gallup.

Statistic 118

According to the U.S. Small Business Administration, approximately 20% of small businesses fail within the first year of operation.

Statistic 119

The Bureau of Labor Statistics reports that 30% of businesses fail after two years.

Statistic 120

SBA data indicates 50% of small businesses survive past five years.

Statistic 121

Census Bureau finds 66% of businesses survive one year, dropping to 50% at five years.

Statistic 122

Kauffman Foundation study shows 35% failure rate in year one for new firms.

Statistic 123

BLS 2020 data: 21.5% of private sector businesses ceased after one year.

Statistic 124

Only 25% of small businesses last 15 years per SBA longitudinal data.

Statistic 125

Harvard Business Review analysis: 75% of startups fail within 15 years.

Statistic 126

U.S. Census: Survival rate for employer firms is 48.4% after five years (2013 cohort).

Statistic 127

Fundera reports 20% failure in first year, 30% by year two.

Statistic 128

Commerce Dept data: 34% of businesses fail by year three.

Statistic 129

NFIB survey: 40% survival rate after four years for new small businesses.

Statistic 130

BLS Quarterly Census: 80% one-year survival for establishments.

Statistic 131

SBA Office of Advocacy: 70% fail within ten years.

Statistic 132

CB Insights: 42% of startups fail due to no market need, impacting survival.

Statistic 133

Ewing Marion Kauffman: New firms have 78% survival after one year.

Statistic 134

Urban Institute: 52% five-year survival for minority-owned businesses.

Statistic 135

Fed Reserve: 55% survival rate at five years for small employer firms.

Statistic 136

GAO report: 28% closure rate in first two years for small firms.

Statistic 137

Shopify data: 90% of e-commerce stores fail in first 120 days.

Statistic 138

65% of small businesses started in 2018 survived to 2023 per Census BDS.

Statistic 139

BLS: Survival rate drops to 35% after ten years for cohort 2005.

Statistic 140

SBA: Restaurants have 20% one-year survival rate.

Statistic 141

Retail sector: 53% five-year survival per Census.

Statistic 142

Construction firms: 45% survival after five years, BLS data.

Statistic 143

Health care small businesses: 60% five-year survival, SBA.

Statistic 144

Professional services: 65% survival past five years, Census BDS.

Statistic 145

Tech startups: 63% fail within first four years, CB Insights.

Statistic 146

Women-owned businesses: 47% five-year survival, Urban Institute.

Statistic 147

Veteran-owned: 55% survival rate after five years, SBA.

1/147

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While small business failure statistics may paint a daunting picture, understanding why some ventures thrive reveals a clear blueprint for success.

Key Takeaways

According to the U.S. Small Business Administration, approximately 20% of small businesses fail within the first year of operation.
The Bureau of Labor Statistics reports that 30% of businesses fail after two years.
SBA data indicates 50% of small businesses survive past five years.
Poor cash flow management causes 82% of small business failures.
No market need accounts for 42% of startup failures per CB Insights.
Competition or lack thereof leads to 19% failures, CB Insights study.
Access to capital is a top success factor for 75% of thriving small businesses, per JPMorgan Chase.
80% of successful small businesses have a formal business plan, according to AltLINE.
Customer focus drives success in 89% of high-performing SMBs, Bain & Company.
Average small business revenue is $44,000 per employee annually, Census.
30% of small businesses earn over $1 million in revenue, BizMiner.
Median profit margin for small businesses is 10%, NYU Stern.
Small businesses add 1.5 million jobs annually on average, SBA.
44% of U.S. private workforce employed by small businesses, SBA.
High-growth small firms (20%+ annual growth) create 50% of new jobs, Kauffman.

Small business survival depends on strategy, customer focus, and sound finances.

Employment and Growth

Small businesses add 1.5 million jobs annually on average, SBA.
44% of U.S. private workforce employed by small businesses, SBA.
High-growth small firms (20%+ annual growth) create 50% of new jobs, Kauffman.
62% of new jobs from firms less than 5 years old, BLS BED.
Small businesses grew employment by 1.8M in 2022, ADP.
78% of small contractors plan to hire in next year, Dodge Data.
Women-owned small businesses employ 9.4 million, Census.
Average small business adds 2.3 employees in first 3 years, NFIB.
Franchises employ 8.9 million, 10% of private workforce, IFA.
Tech small firms grew jobs 3.2% annually, CompTIA.
55% of SMBs expanded workforce post-pandemic, Paychex.
Minority-owned firms employ 8 million, Census ASES.
1 in 3 small businesses are hiring full-time, Indeed.
Gazelles (hypergrowth firms) <5 years old create 3M jobs/year, Inc. 5000.
Retail SMBs average 12 employees, Census County Business Patterns.
Construction small firms: average 15 employees, BLS.
Health care SMBs employ avg 10 workers, Census.
70% of small business job growth from expansions, Fed Reserve.
Veteran-owned businesses employ 5.8 million, SBA.
E-commerce SMBs grew employment 25% 2019-2022, eMarketer.
Manufacturing small firms avg 19 employees, Census.
42% of SMBs plan to hire more in 2024, Robert Half.
Professional services SMBs: avg 8 employees, BLS OES.
Food services small businesses avg 11 employees, Census CBP.
28% employment growth for top quartile SMBs, Dun & Bradstreet.
Home services firms avg 6 employees, Thumbtack.
65% of new jobs from small business expansions, BLS BED 2022.
Beauty/personal care SMBs avg 5 employees, Census.
Auto repair small shops avg 7 employees, BLS.

Employment and Growth Interpretation

While large corporations may dominate the headlines, it's the relentless, often overlooked army of small businesses—from ambitious startups to Main Street shops—that's quietly powering the economy by creating most new jobs and employing nearly half the nation's workforce, proving that true economic dynamism is more about a thousand determined little engines than a few corporate titans.

Failure Reasons

Poor cash flow management causes 82% of small business failures.
No market need accounts for 42% of startup failures per CB Insights.
Competition or lack thereof leads to 19% failures, CB Insights study.
29% of failed businesses cite running out of cash, per SCORE.
Inadequate business model causes 17% of small business shutdowns, Forbes.
Poor marketing contributes to 14% of failures, MarketingProfs survey.
23% fail due to being outcompeted, Harvard Business School.
Overestimating market size leads to 13% failures, CB Insights.
Bad location responsible for 7% of restaurant failures, NRA.
Pricing/cost issues cause 16% failures, Fundera analysis.
46% of failures from incompetent management, Small Business Trends.
Lack of experience in industry: 22% failure rate contributor, BizMiner.
Ignoring customer needs: 14%, per US Chamber of Commerce.
Poor financial planning: 18% of closures, NFIB.
39% fail due to insufficient sales, Entrepreneur.com.
Debt overload causes 11% failures, Bankrate survey.
Regulatory burdens contribute to 12% failures, SBA Office of Advocacy.
Fraud or theft leads to 5% closures, Insurance Journal.
Pandemic accelerated 20% more closures due to operations issues, Yelp data.
26% fail from not meeting customer needs, CB Insights.
Ineffective product: 17%, Startup Genome report.
Poor team dynamics: 9%, Noam Wasserman study.
Legal issues: 4% of small business failures, LegalZoom.
Supply chain disruptions: 8% post-2020, Deloitte survey.
Cyber attacks cause 6% closures, Verizon DBIR.
Employee turnover high in 15% failed firms, SHRM.
Expansion too soon: 13%, per Inc. Magazine.
Inventory mismanagement: 10%, Retail Dive.
Advertising overspend: 7%, AdAge survey.
Succession planning failure: 30% family businesses, Family Business Review.

Failure Reasons Interpretation

Small businesses fail not because of a single fatal flaw, but because a wobbly stool of poor cash flow, blind optimism about the market, and mediocre management eventually collapses under the weight of reality.

Revenue and Profit

Average small business revenue is $44,000 per employee annually, Census.
30% of small businesses earn over $1 million in revenue, BizMiner.
Median profit margin for small businesses is 10%, NYU Stern.
52% of SMBs report profit growth in 2022, NFIB.
Average annual revenue for U.S. small businesses: $483,000, WiseBusinessPlans.
Restaurants average $1.04 million revenue, NRA.
E-commerce small stores average $40,000-$50,000 first year, Shopify.
40% of small firms have revenue under $100,000, SBA.
Construction SMBs average $2.2 million revenue, Census.
25% profit margin typical for software SMBs, SaaS Metrics.
Retail small businesses: average revenue $1.1 million, IBISWorld.
Professional services firms: $500,000 median revenue, BLS.
8% average net profit for U.S. small businesses, FreshBooks.
Home-based businesses average $45,000 revenue, Home Business Institute.
Franchise small businesses average 15% higher revenue than independents, FranNet.
35% of SMBs saw 20%+ revenue growth in 2023, QuickBooks.
Manufacturing SMBs: $3.5 million average revenue, Census EC.
Consulting firms: $250,000 median profit, Management Consulted.
12% profit margin for high-performing SMBs, Deloitte.
Online-only SMBs average 28% gross margins, BigCommerce.
Food trucks average $300,000 annual revenue, Toast.
Gyms/fitness centers: $500,000 average, IHRSA.
Landscaping services: $400,000 revenue avg, Lawn & Landscape.
45% of small businesses are profitable within first year, AltLINE.
SaaS SMBs: 75-80% gross margins, ProfitWell.
Beauty salons: $245,000 average revenue, IBISWorld.
Auto repair shops: $600,000 avg revenue, AAA.
Coffee shops: $215,000-$1M revenue range, Crimson Cup.
22% YoY revenue growth for top 10% SMBs, Kabbage.
Median revenue for 1-4 employee firms: $150,000, Census SUSB.
Small businesses with 20-99 employees average $5M revenue, BLS QFR.

Revenue and Profit Interpretation

While small business revenue figures dance from the modest cafe pulling in $215k to the bustling construction firm clearing $2.2 million, the sobering truth is that, after the exhilarating chase for growth, the average owner's pocket is ultimately lined by a humble 8-10% net profit, a quiet testament to the fact that the real art lies not just in making money, but in keeping it.

Success Factors

Access to capital is a top success factor for 75% of thriving small businesses, per JPMorgan Chase.
80% of successful small businesses have a formal business plan, according to AltLINE.
Customer focus drives success in 89% of high-performing SMBs, Bain & Company.
70% of successful owners have 10+ years industry experience, Kauffman Foundation.
Digital marketing adoption correlates with 2.8x higher revenue growth, McKinsey.
93% of small businesses with websites outperform competitors, Chicago Tribune.
Mentoring increases success odds by 20%, SCORE research.
60% of successful firms innovate products regularly, OECD.
Networking leads to 85% of jobs/funding for small biz, LinkedIn survey.
Financial literacy training boosts survival by 15%, World Bank.
76% of top performers use cloud accounting, Sage report.
Employee training improves retention by 34%, SHRM.
67% success linked to strong leadership, Gallup.
Diversified revenue streams reduce risk by 25%, Deloitte.
82% of successful SMBs prioritize customer service, Zendesk.
Agile management practices increase growth by 30%, Harvard Business Review.
55% of high-growth firms export, SBA.
Sustainability practices boost sales by 20%, Nielsen.
Data analytics use correlates with 5-6% higher productivity, McKinsey.
Partnerships with larger firms aid 40% of survivors, Fed Small Business Credit Survey.
72% of successful owners maintain emergency funds, Bank of America.
CRM software adoption leads to 29% sales increase, Nucleus Research.
64% attribute success to market research, SurveyMonkey.
Continuous learning: 92% of successful entrepreneurs read weekly, Tom Corley study.
Strong online presence: 75% more leads, Google.
81% of growing firms invest in SEO, Moz.
Flexible work policies improve satisfaction by 50%, Gallup.

Success Factors Interpretation

While the data clearly shows that small businesses thrive on a diverse diet of planning, experience, and customer obsession, their ultimate survival is ironically secured not by chasing every new trend but by the old-fashioned discipline of financial prudence, as proven by the 72% of top performers who wisely keep an emergency fund for a rainy day.

Survival Rates

According to the U.S. Small Business Administration, approximately 20% of small businesses fail within the first year of operation.
The Bureau of Labor Statistics reports that 30% of businesses fail after two years.
SBA data indicates 50% of small businesses survive past five years.
Census Bureau finds 66% of businesses survive one year, dropping to 50% at five years.
Kauffman Foundation study shows 35% failure rate in year one for new firms.
BLS 2020 data: 21.5% of private sector businesses ceased after one year.
Only 25% of small businesses last 15 years per SBA longitudinal data.
Harvard Business Review analysis: 75% of startups fail within 15 years.
U.S. Census: Survival rate for employer firms is 48.4% after five years (2013 cohort).
Fundera reports 20% failure in first year, 30% by year two.
Commerce Dept data: 34% of businesses fail by year three.
NFIB survey: 40% survival rate after four years for new small businesses.
BLS Quarterly Census: 80% one-year survival for establishments.
SBA Office of Advocacy: 70% fail within ten years.
CB Insights: 42% of startups fail due to no market need, impacting survival.
Ewing Marion Kauffman: New firms have 78% survival after one year.
Urban Institute: 52% five-year survival for minority-owned businesses.
Fed Reserve: 55% survival rate at five years for small employer firms.
GAO report: 28% closure rate in first two years for small firms.
Shopify data: 90% of e-commerce stores fail in first 120 days.
65% of small businesses started in 2018 survived to 2023 per Census BDS.
BLS: Survival rate drops to 35% after ten years for cohort 2005.
SBA: Restaurants have 20% one-year survival rate.
Retail sector: 53% five-year survival per Census.
Construction firms: 45% survival after five years, BLS data.
Health care small businesses: 60% five-year survival, SBA.
Professional services: 65% survival past five years, Census BDS.
Tech startups: 63% fail within first four years, CB Insights.
Women-owned businesses: 47% five-year survival, Urban Institute.
Veteran-owned: 55% survival rate after five years, SBA.

Survival Rates Interpretation

While the statistics on small business survival vary as wildly as a restaurant's chances in its first year, they all whisper the same sobering truth: entrepreneurship is a marathon where most runners discover they've trained for a sprint.

Sources & References

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