Right from a family-owned grocery store to the world-class tech unicorn, small businesses and even established businesses come in all shapes and sizes. Some operate in a dorm room or garage while others boast of over 300 workers in production firms. The more established businesses create or use the latest technology while others use post-it-notes or use spreadsheets.
Given such breadth of variations in small businesses and their operation processes, it’s easy to get surprised when you check the small business growth stats and other aspects of these enterprises. Here are seven crucial small business stats you never knew.
1. Over 50% of Americans work for small businesses or own one
Probably you see countless small and medium-sized companies all around you. What you didn’t know is that 50% of your friends, neighbors, and other Americans either work for these businesses or own one.
2. These businesses power the economy
Most people think that the juggernaut employers such as Walmart or General Motors that keep the American economy running. But it’s the small and medium-sized businesses that power the economy. According to a study done by SBA, small and medium-sized businesses create at least two out of every three job opportunities created in the United States each year.
3. Small business leaders or owners wear gobs of hats
Over 75% of small and medium-sized business owners and 66% of SMB leaders are personally responsible for 3 or more areas of their businesses such as human resources, sales, operations, customer service, finance, product development, or business IT.
4. Most SMBs use manual processes
On average, small and medium-sized business teams spend about 23% of their days handling data manually (majorly inputting). This takes away the time that could, otherwise, be spent on more productive business projects. In fact, these businesses lose more than a full day each week to manual processes.
5. Small businesses love CRM technology
It’s no surprise that time-strapped small and medium-sized businesses lag behind when it comes to automating their process or adopting new technology. In fact, only one in three SMBs uses CRM systems. But 20% SMBs that have adopted the CRM technology report that they really love it and can’t up on the system.
6. SMBs are embracing AI
Only 11% of SMBs use Artificial Intelligence (AI). On the other hand, 41% of small and medium businesses feel that the AI concept is too complicated for their business needs. However, over 51% of SMBs believe that Artificial Intelligence is an essential factor in choosing the technology to integrate with their business processes. Therefore, AI isn’t a thing for the giant corporation only.
7. Women’s entrepreneurship has been growing
Over the past two decades, according to American Express, the number of businesses owned by women has increased by 114% compared to the overall national businesses growth rate of approximately 44%.
These numbers will help you understand how exceptional small and medium-sized business are. These enterprises power the economy and are embracing the technology too.