Micro Business Statistics and Trends

Micro Business research

Micro or small businesses are the mainstay of the United States’ economy. They are defined as firms having fewer than five employees in all. Micro firms represent a staggering 99.7% of all the employer firms in the country. Over 50% of employees in the private sector are employed by such firms and they pay 44% of the total private payroll in the country. They have also generated 64% of all the new jobs in the market during the last 15 years.

The population favors micro businesses. Over 90% of all consumers in the US believe in supporting small businesses and believe that these businesses contribute positively to the economy through jobs and taxes.

Statistics regarding micro business

Most small businesses, i.e. around 61%, employ fewer than five people under them. Micro businesses also hire more than 40% of the overall workers in high-tech fields such as engineers, scientists, and programmers. Regarding trade, 97.5% of all the exports were made up by small businesses and they produced 31% in export value. They have also produced 13 times more patents for every employee than the large patenting firms.

About 70% of all new firms tend to survive for a minimum of two years, 50% survive for five years, one-third stays in business for at least a decade, and a fourth of all start-ups last for 15 years or more. These survival rates are similar across major industries and states.

Research done by the Small Business Administration (SBA) shows that micro businesses are usually the job creators. A March 2010 report by Brian Headd of the SBA’s Office of Advocacy states that small businesses created 64% of all the net new jobs in the country during the period between 1993 and 2009 [See report (pdf)]. This is largely expected as small businesses constitute about 98% of all the businesses in the United States.

Even though they boost the creation of jobs when the economy is in good condition, these firms tend to lose money and jobs when the times are bad. Even so, micro businesses are likely to thrive in any type of business environment that they exist in.

Micro businesses represent a growing trend that has been followed for the past decades. The number of new firms coming up every year tends toward the millions and a sizable percentage of them survive for a minimum of two years. These types of business assure you of success if you have a great idea and are willing to work hard to realize it.

 

Latest trends

The recent recession has somewhat decreased the number of new businesses coming up every year. Since 2011, more firms are looking to go solo rather than employing people. Statistics show that 0.32% of adults in America created a business every month, which is a 5.9% drop from the same period in 2010. This is still considered to be one of the highest levels of new entrepreneurship in the past 16 years.

Micro businesses represent an opportunity for everyone to start their own business. Through diligent hard work, you can make it a very successful endeavor.

 

Published by Spring Digital Media, All Rights Reserved.