It is known that the economy has been through some tough times these past few years. And entrepreneurs have represented an important factor in its recovery and development due to the growth of the market, with new products and services, and also because they mean more employment, even if it benefits a small part of the community.
A study from the Global Entrepreneurship Monitor (GEM) indicates that about 14% of the 27 million Americans with a working-age are developing or running a new business. In addition, 51% of the working population thinks that new businesses represent a great opportunity while 81% with the intention of developing a startup are already working on it.
In today’s blog, we are going to give you the 6 encouraging statistics that will surprise every entrepreneur, based on the Kauffman’s Growth Entrepreneurship Index. This report will help us measure the impact that new businesses have in the US economy according to their growth rate and revenue.
6 Statistics That Will Surprise Every Entrepreneur
Rate Of Startup Growth
According to Kauffman, the National Rate of Startup Growth this year was 58.54%. That means an 11.64% scaling difference since 2015, and this number continues to increase. But, in which way does it contribute to the economy? Well, so far this year, new businesses represent 200,000 more jobs than the past year.
Share Of Scaleups
This shows how many small businesses grew until they reached a scale of more than 50 employees. This year the share of Scaleups reached 1.08%, which implies that approximately 1,100 of every 100,000 companies with a maximum of ten years of labor, got that big.
High-Growth Company Density
The number of private business with at least $2 million in annual revenue reaching three years of 20% annual revenue growth normalized by total business population was 79,3 high-growth for every 100,000 employer businesses this year.
Industries With The Biggest High-Growth
To continue with the list of 6 encouraging statistics that will surprise every entrepreneur, it is important to highlight the industry sectors in which entrepreneurs are focusing the most in the present year.
As it was expected, due to the recession the industries with the biggest high-growth have changed in the past years. Construction and real estate used to be at the top of the list, but there is a different picture now.
IT services spearhead the list with an amount of 521 and a share of 13% high-growth firms in 2015. Even with a decrease from 14.9% in 2014, it remains in the first place with the highest growing percentage. Following this sector, we have Advertising and Marketing with 9.9%, business products and services 9.2%, health 7.9% and finally software with 7.2% of the share of high-growth firms.
Index Of Growth Per State
When it comes to larger States, Virginia and Maryland keep their position on the top of the list this year with a rate of startup growth of 80.96% and 78.50% respectively. Besides, Virginia’s index of growth entrepreneurship is 6.39 while Maryland’s index is 3.71. Moreover, Arizona scaled from the 6th position to the third place with an index of growth of 3.18 and 68.14% of the rate of startup growth.
On the other hand, for smaller States, Utah continues to lead the list with an index of 5,24 and a rate of startup growth of 66.69%, followed by New Hampshire with an index of 1.63 and a rate of growth of 78.33% and Delaware with an index of 1.53 and rate of startup growth of 61.68%.
The Gender Gap
To conclude with this list of 6 encouraging statistics that will surprise every entrepreneur, let’s talk about the company ownership according to gender.
Despite the success women have accomplished in business, there is still a great difference in the amount of companies owned by men and women entrepreneurs. According to a Kauffman study, the percentage of firms owned by women have increased to a minimum while the number of businesses owned by men represents a great majority.
In 2014 the percentage of firms owned by men was 64.54% while female owned businesses represented only a 20.47%. Finally, the remaining 14.99% of companies was equally owned by men and women. Certainly, there is a vast difference when it comes to gender in business ownership. But with all the amazing things women are achieving now in business, the gap between men and women-owned businesses will be lower through the years.
A Curious Fact About Entrepreneurs
The Richest Entrepreneurs Worldwide
Nowadays, we can find many businessmen and women who started at the bottom, until their companies became so big that their names transcended borders, expanding worldwide. The names of these successful businesses came with big numbers. Creativity, innovation, perseverance and a lot of effort turned these 3 men into the richest entrepreneurs in the world:
- Bill Gates
Bill Gates is one of the most famous businessmen across the world and that’s not a surprise. He is the co-founder and CEO of the largest computer software company: Microsoft. He is still the richest person according to Forbes, with an asset of $75 billion.
Amancio Ortega is a Spanish businessman, co-founder and chairman of the Indetix Group which is one of the main fashion distributors worldwide. He is the owner of clothing retail store and brand Zara. His vision and capabilities turned him into the second richest men alive, with a net worth of $67 billion.
Finally, we have Warren Buffet, the CEO and largest shareholder of the multinational conglomerate holding company Berkshire Hathaway. He is one of the biggest investors in the world and thanks to his business knowledge and investment strategies, he became the third richest person and entrepreneur in the world, with a net worth of $60.8 billion.
These list of 6 encouraging statistics that will surprise every entrepreneur shows the great impact these businesses are having in the US economy, and the high rate of success they represent. Thanks to this, the number of entrepreneurs who decide to materialize their ideas is growing year after year, being able to overcome the recession which hit the economy a few years ago.
Hopefully, these statistics and examples of successful entrepreneurs will encourage more people who are thinking of developing a startup to take the next big step. It is important to keep in mind that even when it might represent risks, the chance of being successful is remarkable.
If you are an entrepreneur considering the option of starting a new business, do you think these statistics will push you to make the final decision of developing your ideas? If you already run a business, share your ideas and comments with us. We would like to hear from you and your tale of success. And don’t forget to subscribe for more tips, facts, and interesting data.
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