41 Small Business Statistics: Everything You Need To Know

ByJulija A.
April 21,2022

From eCommerce stores and brick-and-mortar boutiques to finance consulting, art galleries, and craft breweries, small businesses are as varied as they are numerous. With more than 32.5 million small businesses in the US, it’s obvious that the market is highly competitive, and that living out the dream of being your own boss might not be quite as easy as it seems. So, what can you do? 

If you have your own company (or plan to start one soon), then the best way to make a sound business plan is to familiarize yourself with a few small business statistics. Learning the ins-and-outs of the industry and how other similar firms made it work can help your own company grow and thrive. After all, small enterprises are the backbone of the American economy, and every person with an idea and the drive to succeed should be given a proper chance to better themselves professionally. 

If you don’t want to read through a bunch of boring research papers, don’t worry—we’ve got you covered. For those readers who are looking for quick answers, we’ve also prepared a small 

FAQ section at the end of the article. If you’ve been wondering about questions like how long do small businesses last, how many small business jobs are generated each year, and why are small businesses important for our economy, you can find all the answers after the stats. 

So, without any further ado, here’s a detailed list of some of the most useful stats for business owners and future entrepreneurs. 

Practical Small Business Statistics for Your Company

  • There are 32.5 million small businesses in the US.
  • 48.9% of small businesses survive five years or more.
  • 77% of small business owners say they feel optimistic about the future of their companies.
  • 50% of all small businesses are operated from home.
  • 82% of businesses that fail do so because of cash flow problems.
  • Small businesses account for 44% of US economic activity.

General Small Business Stats

The Small Business Administration defines a small business as a firm with fewer than 500 employees.

(SBA.gov)

In Australia, any business that has fewer than 20 employees is considered a small business, according to the Australian Bureau of Statistics.  In the European Union, it’s under 50, and in America it’s under 500. The numbers vary across the world, but the definition is the same—it’s any business with fewer employees and revenue than the average corporation.

There are 30.2 million small businesses in the U.S.A.

(SBA.gov)

According to the US Census Bureau, in 2017, small businesses employed 47.5% of the entire country’s workforce. That number keeps rising by the day. Given that it can take as few as six days to file the paperwork and open up your own company in America, it’s no wonder people are eager to jump at the opportunity. If you’re thinking of starting your own venture, bear in mind that you’ll be facing stiff competition from all sides.

Small businesses account for 99.9% of all firms in the US.

(Fundera)

Small business stats show that the majority of businesses in America have fewer than 500 employees. Firms with fewer than 100 employees account for 98.2%, and those with fewer than 20 employees account for 89%.

Micro businesses account for 75.3% of private-sector employers.

(SBA.gov)

A micro enterprise employs nine people or fewer, and this is the most common kind of private-sector business in the U.S. Small business statistics show that while this might be the most common kind of enterprise, its share of employees is very small, providing only 10.5% of all private-sector jobs.

Analysts predict that half of the workforce will be freelancers by 2020.

(Forbes)

A lot of small businesses hire full-time workers even when they don’t have enough work to make it worthwhile. Freelancers are usually a much better investment, especially for a company that’s just starting out and can’t find the resources to pay full-time employees. Luckily, the number of freelancers is on the rise, which gives small companies a great opportunity to find professionals at an affordable price.

19% of small business owners work over 60 hours a week.

(Fundera)

Small business statistics indicate that most owners work hard to make their company succeed, particularly when they’re just starting out. Indeed, it’s not uncommon for bosses to work 60-hour weeks. Stats show a whopping 89% have a habit of working weekends, while 81% work nights.

50% of all small businesses are operated from home.

(SBA.gov)

Given that 290 million people in the U.S.A. have access to the internet, it’s a lot easier to work from the comfort of your own home. This is especially true for sole proprietorships where owners don’t have to worry about finding space for multiple employees. However, one of the challenges of home-based businesses is running an effective marketing campaign, so owners need to be organized and advertising-savvy if they want to build a good customer base.

Small businesses employ 59 million people in the U.S.A.

(SBA.gov)

US economy statistics show us that small businesses have always been an important part of both our culture and our success. They contribute to the local economy by bringing stability, jobs, and financial growth, and they can offer a more diverse inventory or specialize in unique services. Whether they remain small or grow into large corporations, these kinds of companies also contribute to the government’s budget through taxes.

Small Business Growth Statistics & Small Business Financing

84% of small business owners indicate that they’re feeling optimistic about the future of their companies.

(StartBlox)

Despite the sheer number of other small businesses and the heavy competition they face, most owners actually feel very optimistic about their future. Companies expect growth in the upcoming years, and they aren’t afraid to put in the hard work needed to succeed.

The health care and social assistance industries are projected to grow by 21%.

(Fundera)

According to the Bureau of Labor Statistics small business failure rate, the healthcare and social assistance industries are the most stable for startups.

Technology, health, and energy are the top businesses to start now if you want to be rich in a decade.

(Fundera)

Tech, health, and energy are not the biggest industries out there, but right now they’re the most lucrative ones. If you planned to start your business in one of these sectors, your services are bound to be in high demand.

64% of small business owners begin with only $10,000 in capital.

(Intuit)

Small business stats show that the average amount of capital needed to get a company going is around $10,000. This doesn’t sound like much, but for those managing their business from home it can be more than enough to set everything up, especially if they don’t intend to hire many employees.

Micro businesses can get off the ground with just $3,000 in capital.

(LendEDU)

How much capital you need to start a business depends on a lot of factors, but research shows profitable small businesses can be financed for as little as $3,000.

Approximately a quarter of small businesses begin with no financing whatsoever.

(LendEDU)

It might surprise you to know that a lot of small businesses succeed despite starting off without any money behind them.

The average small business loan is worth $633,000.

(Fundera)

This should give you a rough idea of how much money you might be able to get to start your business. Bear in mind, though, that the actual amount you receive will depend on a range of factors, including your own credit history. Those with less than perfect credit scores need not necessarily despair — there are plenty of lenders willing to assist when starting a business with bad credit.

The average SBA loan was $107,000 in 2017.

(Fundera)

SBA loans are issued by banks but guaranteed by the Small Business Administration. If you meet all the criteria, you might be able to apply for one and get a lump sum to finance your business endeavor.

Interested in a business loan? Fill out this short quiz:

 

Small Business Revenue Statistics

86.3% of small business owners earn an annual salary of less than $100,000.

(Fundera)

As you’d probably expect, small business owners rarely make as much money as CEOs of big corporations. They usually make less than $100,000 a year, but what’s even more surprising is that 30.7% don’t take any salary at all.

Only 40% of small businesses are profitable.

(SmallBizTrends)

While 40% of businesses start to become profitable at one point, 30% start losing money, and 30% break even.

In 2018, 9% of small businesses made more than $1 million.

(Business Know-How)

The most profitable small businesses made over $1 million last year, while the least profitable 16% made less than $10,000. In 2018, 37% of US-based small businesses reported expected annual sales of $50,000, while in 2020, the percentage jumped to 43%. 

Small Business Failure Statistics & the Biggest Small Business Challenges

50% of small businesses survive for at least five years.

(Fundera)

Contrary to popular belief, failure rates are not quite as dire as they appear. Two-thirds of all businesses survive for at least two years, while around 33% survive over ten years. While the competition is certainly stiff, a consistent business plan can help you stay on top of the game and build your company from the ground up.

On average, one in 12 businesses closes every year.

(LendEdu)

How many small businesses fail? Apparently, the average is just below 10% – one in 12, to be precise. This might not seem like an overly encouraging stat, but bear in mind that with the right funding, adaptability, and knowledge, you can avoid the common pitfalls of owning a small business and push past the start-up stage. Establishing your company is by no means easy, but it is absolutely achievable.

82% of businesses fail because of inconsistent or insufficient cash flow.

(Fundera)

What is the primary reason that so many new businesses fail? Cash flow is the culprit here. Companies that run seasonal businesses encounter this problem more frequently than others. For example, a gardening company that gets the majority of its work during the warm months might struggle to scrape by during the off-season. Utilizing the services of invoice factoring and analyzing cash flow statements can help fix this problem.

27% of businesses aren’t able to receive the funding they need.

(NSBA)

No financing often means no sales and not enough money to hire the workers you need. A certain percentage of businesses that fail seem to do so because they can’t fund further business endeavors, which prevents them from growing. Financing should always be a top priority, regardless of what kind of company you’re trying to run.

42% of failed small businesses offer products or services that don’t bring anything new or useful to the market.

(Fundera)

The main purpose of a business is to fulfill its customers’ needs. If no one wants or needs your services, it’s unlikely that your company will manage to hold its ground. There is a great percentage of startups that fail because they don’t provide anything original to consumers in a competitive market. Without a product that stands out, they can’t increase their sales enough to finance their own growth.

19% of small businesses fail because of their competition.

(CBInsights)

Not paying attention to what your competitors are doing is one of the biggest mistakes you can make. Companies that perform effective competition research are more likely to adapt and improve their services to get ahead. By impressing their customers, they give themselves a better chance of succeeding.

23% of small businesses fail because they don’t have the right team running the business.

(Business Insider)

The startup failure rate shows us that good management is essential to surviving your first years in business. If you don’t have the right kind of professionals to help you stay on top of your finances and help you organize other aspects of your daily workflow, you won’t be able to focus on getting new customers. But it’s not just management that you need to focus on—having competent and hard-working employees is also important.

17% of small businesses fail because they lack a business model.

(CBInsights)

It’s surprising how many startups fail because they don’t have a business model. After all, it’s practically impossible to start and maintain a successful company without a well-developed plan. Simply having an idea is not enough—you need to define objectives and predict your income stream if you want to make it. A business plan is especially important for companies that are seeking investors; most people won’t even consider financing you without a clear vision.

14% of small businesses fail because of poor marketing.

(CBInsights)

You might have managed to create a great product that’s better than anything your competitors could ever offer. But if you don’t advertise it effectively, no one will buy it.

Only 35% of businesses in the construction industry survive their fifth year.

(Fundera)

Construction companies are among the toughest businesses to manage, as their extremely high failure rate suggests. While 75% manage to survive their first year, the majority can’t seem to push past the five-year mark.

Business Trends for Women & Minority Populations

There are 12.3 million businesses owned by women in the U.S.A. 

(WBENC)

Since 2007, the number of women-owned businesses in the United States has increased by a whopping 58%. Now, women-owned businesses employ more than 9.2 million people across the country.

Businesses owned by women generate $1.8 trillion in revenue. 

(WBENC)

While this number looks impressive, it actually only represents 4.3% of total private-sector revenue. It’s clear that, despite all the progress women have made, there’s still a long way to go before we achieve gender equality in the workplace.

46% of African American small business owners are the only employee in their own firm. 

(Guidant Financial)

Small business statistics show that nearly half of businesses owned by African American people have one employee only, while 41.2% employ between two and give workers. Only 13% have more than six employees. While the number of African American business owners is on the rise, a lot of firms still struggle to find enough capital to hire employees.

Veterans comprise 9.1% of the small business owners of America. 

(Small Business)

Veterans own more than 2.5 million businesses in the U.S., and 2.08 million of those are entirely self-operated businesses with no employees. Technical services and construction are the most common industries in which veterans own businesses.

Immigrants own 25% of new businesses in the U.S.A. 

(Forbes)

A quarter of all small business owners are immigrants who have arrived in the country in pursuit of the American dream. When you consider how many small businesses in the US there already are, this is a significant number. In certain states, such as California and New York, this number is over 40%. However, in others, like Idaho, it’s less than 5%.

Immigrants have founded 55% of the unicorn startups in the U.S.A. 

(NFAP)

More than half of all billion-dollar companies in America were founded by immigrants, the most notable being Uber, co-founded by a Canadian immigrant called Garrett Camp. SpaceX, Avant, and Palantir Technologies are some other examples of exceptionally successful immigrant-run firms in America.

Marketing & Small Business Firms

47% of businesses emphasize marketing as their top growth strategy. 

(StartBlox)

Small business trends show us that companies are becoming more aware of the importance of advertising. Roughly 47% of them plan to invest in marketing efforts, followed by the 33% whose primary focus is developing strategic alliances with business partners.

Only 64% of small businesses have their own website. 

(Clutch)

We live in a digital world. It’s almost unthinkable that a firm could function without a website these days, and yet more than one-third do. The accessibility of website builders nowadays means there’s even less of an excuse to skip this crucial step. Most companies, regardless of which industry they operate in, can benefit from advertising their business online. Given that a lack of marketing strategy is a major contributing factor to the small business failure rate, creating a website is a necessity.

92% of business owners believe having their own website contributes effectively to their digital marketing strategy. 

(Iron Paper)

Fortunately, while not all owners have a website, most understand that their business needs one. This shows a certain willingness to adapt to modern times and invest more resources into advertising.

31% of small business owners identify driving sales as their top marketing goal. 

(Keap)

The average small business revenue depends largely on sales, so most firms are making this their priority in the near future. This is followed by 24.6% of businesses, which are focusing on boosting customer retention and engagement, and 17.1% that want to build brand awareness. Finding the time and resources to build a good marketing campaign can be tricky for most owners. However, the efforts tend to pay off in the long run.

70-80% of people research a small business before visiting or making a purchase. 

(Blue Corona)

Most successful small businesses understand that customers these days need to research a company before they feel confident about making a purchase. One of the easiest ways for people to look into your business is to check out your website and social media profiles, then read the reviews left by other customers. Investing in reputation management services can help you present your firm in the best possible light and make it easy for consumers to trust you.

61% of small businesses invest in social media marketing. 

(Clutch)

Considering the number of small businesses in the US, social media marketing can be a great way to stand out from the crowd. Most of your customers tend to have accounts on platforms like Instagram, Facebook, and Twitter. If your company doesn’t, you’ll struggle to compete. A solid social media strategy can help you inform your customers about important deals or events, and can also serve as an easy way to get in touch.

FAQ
What is considered a small business?

A small business is a privately held corporation or a sole proprietorship. It has fewer employees and earns less yearly revenue than a large business, but the exact definition varies from industry to industry. For example, the agriculture industry classifies small businesses as those with less than $750,000 in annual receipts on average, while the construction industry’s maximum is $36.5 million in average receipts annually.

It’s important to define exactly what small businesses are in order to protect and promote them. The government usually grants special subsidies and benefits to help the little firms compete against the big market-share holders in their industry. They can also generally get bank loans sooner and more easily.

Why are small businesses important to the U.S. economy?

Small businesses are important to the U.S. economy because they make a significant contribution to the yearly GDP while also creating job opportunities, especially for disadvantaged minority communities. They also spark innovation and bring original ideas and products to the market.

Small businesses also complement the economic activity of larger organizations. Many offer important B2B services like accounting, web design, and legal services. Others offer niche products and services; for example, it’s usually small businesses that build specific car parts for large auto manufacturers. An average car has anywhere between 28,000–30,000 parts if you count each nut, bolt, and screw. Most of these parts are produced by small companies who then sell them to larger firms.

What percentage of the economy is small business?

Small businesses account for 44% of economic activity in the U.S.A. according to the latest available report from 2014. While their overall market-share has decreased over the years, they’re still an important part of our financial system. Small businesses’ share of GDP has fallen from 48% to 43.5% over the years. According to the SBA Office of Advocacy, this decline can be attributed to the fast growth of large businesses and the Great Recession.

Approximately what percentage of the jobs in the United States do small businesses provide?

There are 30.2 million small businesses in the U.S.A., and they make up 47.5% of the private workforce. Small businesses created 1.9 million jobs in 2015, and they keep contributing to local communities by providing employment and financial stability to many.

Small companies tend to hire more often than big ones because they need employees to grow and expand. Unfortunately, small firms also have a lower survival rate, meaning workers sometimes lose their jobs because of business closures.

How many small businesses start each year?

Around 627,000 new businesses start every year according to 2008 statistics, which are the latest available stats on this subject. This includes sole proprietorships, partnerships, and corporate entities.

One of the reasons so many new businesses open each year is the relative ease of getting started. In America, you can get most of the paperwork and licenses you need in as little as six days. The process is particularly easy for at-home sole proprietorships because owners don’t have to worry about hiring employees or finding the right location for their business.

What is the success rate of small businesses?

It’s difficult to calculate how many businesses are successful because it largely depends on the industry. For example, finance, insurance, and real estate seem to be doing particularly well—58% of these companies still operate after four years. Information companies have the highest failure rate—only 37% of them are successful after four years.

In general, 40% of companies are profitable, 30% break even every year, and 30% continue to lose money.

What is the survival rate for new businesses?

According to Fundera, 50% of small businesses survive for at least five years, while 80% survive the first year. The older your company is, the harder it can be to maintain your business. Federal income taxes, strict government regulations, and healthcare-management for employees are some of the biggest challenges small business owners have to face, and dealing with these problems is the top priority for many firms.

Conclusion

The competition is stiff, but most owners have a positive outlook on the future. While you’re likely to face challenges along the way, these small business statistics show that it’s possible to run a company successfully when you know what to expect.

Use this knowledge to create or modify your existing business plan, and start growing your business one step at a time.

Sources

About the author

Julia A. is a writer at SmallBizGenius.net. With experience in both finance and marketing industries, she enjoys staying up to date with the current economic affairs and writing opinion pieces on the state of small businesses in America. As an avid reader, she spends most of her time poring over history books, fantasy novels, and old classics. Tech, finance, and marketing are her passions, and she’s a frequent contributor at various small business blogs.

More from blog

Thomas Jefferson once defined coffee as “the favorite drink of the civilized world.” Tea-lovers might disagree with Jefferson, but coffee industry statistics are clear: Millions of people today can’t imagine starting their day without a cup of the stimulating beverage. Coffee Industry Facts - Key Findings Brazil is the largest coffee producer (33%) and the largest exporter in the world. In 2020, 15 countries imported 76.4% of all coffee. An average American drinks 3.1 cups of coffee daily. By 2030, global coffee consumption is expected to grow by one-third. The US imported $5.7 billion worth of coffee in 2020. In 2020, Starbucks had the largest share of the coffee market - 40%.  General Coffee Industry Statistics Wondering where your daily cup of coffee comes from? And whether there will be enough coffee for all coffee-lovers in the future? These statistics will provide the answers.  With 33% of all coffee produced, Brazil is the largest coffee bean producer globally.  (Statista) Overall, about 50 countries worldwide produce coffee. Brazil takes first place by producing nearly a third of all coffee - about 69 million 60-kilogram bags. It’s followed closely by Vietnam, which produces almost 29 million bags annually. Even though coffee originated in Africa, this continent contributes only 12% to the world’s total production. Small farmers still produce 60% of the world’s coffee. (Carto.com) Considering how popular coffee is, you might expect that growing it is a fully mechanized process that takes place on vast plantations. However, the reality is that only 21% of all coffee is produced on farms more than 50 hectares in size. The majority of producers still pick coffee by hand in an intensive, once-a-year harvest.  Global coffee consumption increased 2% between 2019 and 2021. (International Coffee Organization)  On the other hand, the production went slightly downward in the same period, which led to minimizing the gap between production and consumption to 1.2 million bags.  By 2030, global coffee consumption is expected to grow by one-third. (Bloomberg) The estimates show that by 2030, the world will need an additional 200 million bags to keep up with the growing demand. The main causes of this growth are the expected wage growth and increase in population.  In 2020, 15 countries accounted for 76.4% of all coffee imports.  (World’s Top Exports) The five countries that import the most coffee are the US, Germany, France, Italy, and Canada. In 2020, these countries imported 47.7% of the worldwide total. Between 2019 and 2020, Germany increased its import volume by 9.4%, while Italy and the US reduced it by 7.5% and 2.8%, respectively. Brazil holds the top spot for coffee beans export.  (Statista) Brazil is prominent in our coffee statistics not only as the largest coffee bean producer in the world but also as the number one exporter. In 2020, Brazil exported almost $5 billion worth of coffee. Switzerland was the second-largest exporter, with $2.85 billion.  Europe accounts for 33% of the global coffee market. (International Coffee Organization)  It seems like Europe has the most coffee drinkers altogether. It’s closely followed by Asia and Oceania, with a market share of 22%, followed by Latin America (20%), and North America (19%). The coffee market in Europe is expected to stay stable throughout 2025 and beyond.  The average price of a cup of coffee ranges from $0.46 in Iran to $7.77 in South Korea. (Global Coffee Report)  The average price of a cup of coffee varies drastically worldwide. Recent studies have determined South Korea is the most expensive country to drink a cup of coffee in, with the average price being $7.77. On the other hand, the cheapest is Iran, where the average cup of coffee costs $0.46.  Only about 10% of coffee is roasted before being exported.  (International Coffee Association) Essentially, 90% of all coffee is exported green, which means that roasting actually takes place in the importing country. Since roasting technology differs from country to country, it also affects the overall taste of the coffee. The United States Coffee Market Statistics In this section, we take a look at the US coffee industry size, information on consumer behavior, and imports and exports. In 2020, an average American drank two cups of coffee per day. (National Coffee Association) One of the most interesting coffee drinking facts from the 2020 National Coffee Association report is that the average American coffee-drinker consumes 3.1 cups of coffee per day. Sixty-two percent of Americans drink coffee every day, while seven out of 10 Americans drink coffee at least once a week. The US imported $5.7 billion worth of coffee in 2020. (World’s Top Exports) Americans are among the most avid coffee consumers in the world, with more than 400 million cups of coffee drank per day. 67% of Americans purchased their coffee from the supermarket in 2019. (Statista)  Since a considerable percentage of Americans prefer gourmet coffee, one would expect them to shop for their favorite blend at their local coffee roastery or other specialty coffee shop. Still, it appears that customer retention levels in this segment of the industry are not particularly high - only 9% regularly choose this option. The majority of consumers purchase their coffee at the supermarket, 14% order coffee online, on Amazon, or elsewhere, while 13% buy it at their local coffee shop, according to the specialty coffee industry statistics. Almost 60% of all coffee served in the US is brewed from premium beans. (National Coffee Association) While gourmet coffee is rising in popularity, traditional coffee consumption has decreased 10% from 2019 to 2020.  In 2020, Starbucks had the most coffee shops in the US.  (Statista) With 15,444 stores in the US, Starbucks holds 40% of the US coffee shop market. Dunkin’, the food franchise that made history with 3 million customers daily, holds the second spot with slightly more than 9,000 stores. Tim Hortons, in third place, has 630 stores in the US. When translated into coffee sales, Starbucks generated $21.31 trillion in 2019, while Dunkin’ had $9.2 trillion. 41% of Americans used a drip coffee maker to brew coffee in 2020. (Statista) The second most popular method was the single-cup brewer with 27%, while 12% used an espresso machine to make coffee at home. Only 10% of respondents prefer cold brewing, 8% purchase ready-to-drink coffee in a can or a jar, while 7% purchase instant coffee in a can or a jar. Bean-to-cup brewer is used by 6%, while the remaining methods account for less than 5%.  Coffee Consumption Statistics Worldwide - by Demographic  Who are the people behind all these coffee-drinking facts and figures? Let’s find out. 72% of people over the age of 60 drink coffee every day. (National Coffee Association)  But it’s not just older adults who drink coffee regularly: More than half (54%) of Americans between the ages of 25 and 39 consume coffee, along with 40% of those aged 18-24. The latter group has, in fact, seen a 14% increase in coffee consumption since the beginning of 2021. In the US, women spend on average $400 more on coffee than men. (Perfect Brew) An average American woman spends approximately $2,327 each year on coffee, while an average man spends $1,934. Still, it seems that men simply drink cheaper coffee - if we were to compare coffee consumption per capita by gender, men take the lead with 2.22, compared to women’s 1.79.   Hispanic Americans are the most likely demographic group to drink coffee every day. (Perfect Brew) The survey conducted by the National Coffee Association looking to uncover coffee facts and statistics showed that Hispanic Americans are 65% more likely to consume coffee daily than members of any other ethnicity. 41% of millennials spent more money on coffee than on retirement plans in 2017. (Acorns Money Matters) In an Acorns study conducted in 2017, 41% of nearly 2,000 respondents born between the 1980s and early 2000s admitted to spending more on coffee than on retirement. Unsurprisingly, 39% also admitted to feeling anxious about their financial future.  Scientists and lab technicians are the heaviest coffee drinkers. (Perfect Brew) Among the top 15 professions that consume the most coffee, scientists and lab technicians take the top spot. Marketing and advertising professionals are second, while education administrators take the third spot. Writers and editors hold the fourth spot, while healthcare administrators take the fifth, according to a recent coffee industry analysis by Perfect Brew.  People aged 25-34 spend $2,000 in coffee shops yearly. (Amerisleep) There’s a stark difference between this age group and people over 65, who spend only $7 in coffee shops per year. People aged 18-24 spend $172 per year on average, while the 35-44 age group doesn’t shy away from spending $1,410. These figures could partially be the result of the shift toward remote work, as many remote workers find coffee shops to be more conducive to productivity than their homes.
By Vladana Donevski · May 10,2022
Anyone who has ever been on a hunt for unique handmade items, vintage treasures, and local artisan products has most likely heard about Etsy. This creative online marketplace started out in 2005 as a project by a group of enthusiasts from Brooklyn, New York. Etsy has soon become an online refuge for artists and artisans from all over the world.  The platform has grown into a $33.75 billion business from very humble beginnings. If you're interested in learning more about this eCommerce giant and its journey to the top, check out our Etsy statistics below.   Top Etsy Statistics: Editor’s Choice With a market cap of over $17 billion, Etsy is the 12th largest online marketplace globally. Etsy’s annual net income in 2021 reached $493 million. As of 2020, Etsy has 1,209 employees. 97% of Etsy sellers run their shops from home. 62% of sellers on Etsy are from the United States. In 2020, 81% of Etsy sellers identified as women. With a 25% seller share, Home & Living is the most popular category on Etsy. 71% of Etsy sellers consider it important to grow their business sustainably and responsibly. General Etsy Stats To better understand this eCommerce platform and its users, we've compiled a list of some general Etsy statistics. Read below to learn about the number of active buyers and sellers, the revenue Etsy has generated over the years, and the best-seller categories of products available for sale. With a market cap of over $17 billion, Etsy is the 12th largest online marketplace globally. (CompaniesMarketCap) With a market cap of $17.90b as of March 2022, Etsy scores above JD Health, Zalando, and Rakuten, to name a few prominent companies.  Etsy traffic statistics have increased majorly during 2020, boosting profits significantly. Nevertheless, the market is still dominated by eCommerce giants such as Amazon, Alibaba, Meituan, Jingdong, and Shopify. There were around 7.5 million active sellers on Etsy in 2021, a nearly 75% increase on 2020. (BussinessOfApps) Back in 2019, there were almost $2.7 million active sellers on Etsy. Only a year later, the figures went up over 60% to around 4.3 million people worldwide, only to balloon by nearly 75% to 7.5 million in 2021. As testified by many Etsy sellers, statistics have never looked so good. The reason behind such a steep surge is most likely the COVID-19 pandemic which forced many people to start selling online exclusively.  The number of active Etsy buyers reached 96.3 million in 2021. (BussinessOfApps) Compared to 2019, when some 46.3 million people bought goods on Etsy regularly, 2020 has brought a surge of over 75% for a record 81.8 million active buyers on the platform. This was then followed by a smaller but still impressive 17% increase to 96.3 million users in 2021. Judging by the Etsy buyer statistics, people have heartily embraced the online shopping model forced by the COVID-19 pandemic. As of 2020, Etsy has 1,209 employees. (Backlinko) We can get valuable insights by tracking workflow within a company. Etsy has been growing steadily over the past few years, and the growth was followed by an increase in the number of employees. The 2020 sales boom saw the workforce increase by 14.49%. These Etsy updated statistics do not include an additional 205 workers employed at Reverb, its daughter company. Most of the employees are based in the United States, but the company also has offices in Ireland, Germany, Canada, Australia, and more. Etsy Demographics Let’s take a closer look at the demographic stats and facts, as they provide insights into the target market for a product or service. Additionally, they can help identify new markets or assess the potential impact of changes in the economy or population on a business. By understanding the demographics of its customer base, a company can make better decisions about where to allocate its resources to maximize growth.  62% of Etsy’s sellers are from the United States. (Statista) Etsy seller statistics show the distribution of its sellers on a global level. As of June 2020, some 62% of Etsy's merchants were from the United States, while the remaining 38% come from other countries. The majority of them are from the UK (30%), followed by Canada (11%), Australia (7%), and  Germany (7%). Most of Etsy’s US sellers come from California (14%). (Statista) The figures from June 2020 indicate that 14 percent of the US Etsy sellers are located in California. During the measured period, Florida and Texas both contributed 7%, while Pennsylvania, North Carolina, and Washington had a 4% share of the total US seller market each. As of December 2020, 47.7% of Etsy employees were female. (Statista) We highly appreciate Etsy’s gender awareness and diversity politics, especially nowadays when women were only 5% of the CEOs appointed globally in 2020. Namely, the eCommerce giant has been trying to increase the number of women in leadership positions and on its Board of Directors. As of December 2020, 47.7 percent of its employees were female, along with 45.3% male workers and 7% that were classified as ‘other.’ Statistics on Etsy's global corporate demography indicate that the board positions are equally occupied by both males and females, with a 50-50% ratio.  In 2020, 81% of Etsy sellers identified as women. (Statista) (Etsy) The figures certainly show how one-sided the sellers’ market is, probably because women dominate the handmade arts & crafts niche. When it comes to Etsy users, statistics on the sellers used to favor women even more in the past. According to a report from 2015, as many as 86% of the sellers on the platform were female. 71% of Etsy sellers consider it important to grow their business sustainably and responsibly. (Etsy) Sustainability and value-driven manufacturing practices are essential to Etsy's community, as reflected in the items being sold on the site. This new approach to business resulted in self-organizing into online support groups. Nearly a quarter of Etsy sellers worldwide joined one of more than 10,000 Etsy Teams worldwide, where they can seek and provide support and collaboration opportunities.  97% of Etsy sellers run their shops from home. (Statista)  2020’s  Etsy statistics reveal that 97% of sellers run their shops from home. At the same time, 69% of respondents had started their Etsy shop as a way to supplement their income. For many Etsy sellers, their businesses are their primary source of income, and 69% of them consider their shop a business. More than half (55%) are multi-channel sellers.  Revenue and Sales Statistics Although Etsy's sale statistics recently didn't quite match the boom in 2020, the company is still going very strong. The pandemic has brought about a renewed interest in handmade and vintage items, increasing the platform’s popularity significantly in recent years. With a 25% seller share, Home & Living is the most popular category on Etsy. (Statista) Looking at the best-selling items on Etsy and their generated revenue, Statista compiled a list of the most popular categories among handmade Etsy sellers worldwide as of June 2020.  According to Etsy sales statistics by category, home and living is on the top of the list with a 25% seller share. This is followed by art and collectibles, which accounted for 21%, jewelry with 15%, and clothing with an 11% share.  The least popular group of products were pet supplies, electronics & accessories, and shoes, which accounted for only 1% of sellers each.  In 2020, Etsy was the eighth largest retail website in terms of online traffic. (Statista) The big dog among eCommerce websites, Amazon.com, had almost 3.68 billion visitors per month in 2020 followed by eBay.com with 1.01 billion visits on average each month. eBay, Rakuten, and Samsung also scored highly on the list.  With a monthly traffic average of 289.33 million visits, Etsy statistics had even top sellers jealous, contributing greatly to the platform’s huge revenue increase during that year. In 2020, Etsy generated $1.7 billion in total revenue. (Statista) The revenue of the online marketplace amounted to $1.7 billion in 2020, which represents a surge of more than 100 percent compared to the year before. Etsy had a market capitalization of $7.46 billion in 2019, just seven years after its official launch. According to industry experts, marketplace revenues (including sales listing and transaction fees), third-party payment processor fees, and seller service revenues are the company's main revenue streams.  Etsy’s annual net income in 2021 reached $493 million. (Statista) Looking at the Etsy sales statistics for 2021, there was a massive increase over the $349 million it made in 2020, which itself dwarfed 2019’s $95.89 million. The company is clearly doing something right, and at this rate, the future of eCommerce on the platform is looking very bright. Top sellers on Etsy earn $10,000 per year or more. (The Verge) Amid the many stories from Etsy's sellers regarding their earnings, the conclusion is that the most successful merchants earn $10,000 or more on the platform. Etsy shop statistics vary wildly between the various categories on the site, though. According to some top sellers, they get charged a flat 12% advertising fee that they cannot opt out of. This fee is 15% for other sellers, but that charge is optional.
By Danica Djokic · April 19,2022
Call centers are an inescapable element of running almost every customer-centric business. Regardless of whether you are offering a product or a service or using a call center to market them, you need to provide a line of communication with your customers.  Not all support and call centers actually require a phone line. Call center statistics show that the industry has moved online to a large degree, and many other trends are emerging as companies strive to provide a better customer experience.  Let’s see some of the most important stats about the call center industry in 2022. Call Center Industry Statistics - Key Findings The global market value of call centers is estimated to reach $496 billion by 2027. 87% of employees in call centers report high-stress levels at their job. The contact center software market will be worth $149.58 billion by 2030. Businesses lose approximately $75 billion yearly because of poor customer service. 35% of customers want customer support agents to help them resolve issues in one interaction. General Call Center Operation Statistics Call centers are an essential industry nowadays, especially as many people turn to customer support. After all, the world has made a significant shift toward performing most of its daily life online. So let's check some of the most important stats about this industry. The global market value of call centers is estimated to reach $496 billion by 2027. (Report Linker) Research suggests that the industry's value will keep increasing at a projected CAGR rate of 5.6% between 2020 and 2027. In-house call center solutions have a 5.5% projected growth rate during the same period, while outsourcing will grow by 5.9%. In 2020, US call centers accounted for 29.49% of the global call center market. (Report Linker) The overall global market was valued at $339.4 billion in 2020, with the US share at approximately $100.1 billion in 2020. Other notable markets worldwide were China, Japan, Canada, and Germany, all with strong growth estimates.  Almost a quarter of all call centers in the US made less than $250 million in 2020. (Statista) 24%, to be precise. 13% earned more than $25 billion. 4% made between $15 and $25 billion, while 19% earned anywhere from $5 to $15 billion, and another 19% made between $1 and $5 billion. The contact center software market will be worth $149.58 billion by 2030. (Grand View Research, Inc) According to call center statistics for software, the industry's market size is $28.09 billion in 2022, up from $23.9 billion in 2021. If it continues following the estimated CAGR of 23.2% between 2022 and 2030, it should reach a staggering $149.58 billion by 2030. In 2020, US call center businesses employed 2.83 million people. (Statista) The number of employees in the call center businesses grew steadily from 2014 when 2.51 million people worked in this industry. This trend changed in 2020, though, which saw a drop in the number of employees in the contact center industry compared to 2019’s 2.92 million. Businesses lose approximately $75 billion yearly because of poor customer service. (Forbes)  Based on research in NewVoiceMedia’s 2018 “Serial Switchers” report, Forbes announced in 2018 that many customers were abandoning companies due to poor customer service. Recent research conducted by Salesforce shows that 91% of customers will make another purchase at the same company after a good customer service experience.  In comparison, 70% said they would not buy a product from a company with long wait hours for customer support. If your company is struggling with similar issues, consider investing in call tracking software. Call Center Stats on Customer Satisfaction  Customer support is an essential part of providing a quality service, and companies need to pay close attention to customer satisfaction in this area. The following stats tell us more about customer preferences regarding call centers and support. 77% of customers appreciate proactive customer service. (Zippia) On top of wanting instant support, customers also expect customer representatives and sales reps to anticipate their needs and address them accordingly. Companies that can do that are much more popular with customers. 76% of customers prefer using different support channels depending on context. (Salesforce) According to the call center analysis by Salesforce, email is still the most popular customer support channel, followed by phone and in-person support. Online chat and mobile apps take fourth and fifth place, respectively. 78% of customers don’t like support agents that sound like they are reading from a script. (Zippia) Personalized sales and support communication has been the key for a while now. 52% of customers expect custom-tailored offers at all times, and 66% want the companies “to understand their unique needs and expectations.”  This is no small feat, especially for the largest call center companies serving thousands of customers. Ensuring your company uses good call center software is only half the battle. You’ll still need quality support agents who can convince your customers that their needs are important to your company. 50% of customers believe that the customer service and support from most companies need a major overhaul. (Salesforce) While half of the customers expect better customer support, 60% agree that companies need to improve their trustworthiness, and 55% think companies should work more on their environmental practices. Statistics show that companies focusing on “making the world a better place” always do well. Surprisingly, improving the product was ranked lower, as was using better technology and working on the overall business model. 35% of customers want customer support agents to help them resolve issues in one interaction. (Microsoft’s 2020 Report) Quick problem resolution should be one of the most important call center metrics. Over a third of customers in a Microsoft survey from 2019 said that resolving issues in one interaction should be a priority for the customer support team. 31% claimed that getting a knowledgeable agent is the most important, and 20% said that not having to repeat the same information is crucial. The latter seems like a growing problem, as more than half of customers felt that the departments providing support are not always in sync.  These are definitely the key call center metrics that every company should pay attention to. 92% of consumers hesitate when buying a product if it has no customer reviews. (Fan & Fuel) Worse still, 35% might not buy a product at all after reading just one negative review. According to Zendesk, word of mouth is also extremely powerful: 95% of customers will tell others about a bad experience, and 87% will share good ones.  Unfortunately, another survey shows that 79% of consumers who shared their poor online experience with customer support got ignored. Companies making this mistake should consider hiring a good reputation management service, as it will help improve their sales in the long run. Must-Know Information About Call Center Workers Despite the push toward automatization, live agents are still the pillars of any good customer support team. Here are some stats about the call center workforce. There were approximately 286,696 call center agents employed in the US in 2021. (Zippia) The majority of call centers are located in Texas, or more specifically in Dallas and Houston. The average age of a call center employee is 40 years. Furthermore, 67.2% of all agents are women, while 27.9% are men. 87% of employees in call centers report high stress levels at their job. (Cornell University) Handling customer requests every day is not an easy job. Customer support agents are typically the first line of defense against angry customers, leading to very alarming call center stress statistics. 80% of agents experience angry customers blaming them for things out of their control.  Undefined expectations, lack of incentives, and boredom with mundane, repetitive tasks cause agents to be miserable at work, which, in return, translates into poorer customer experience stats across the board. The average salary of a call center employee is $27,765 per year. (Zippia) Salaries for new agents start at around $20,000 per annum. Those of the 10% top-performing agents can go up to $36,000 or more. The turnover rate for call center agents is over 40% globally. (ICMI) (Mercer) When these call center turnover statistics are compared to the 22% average turnover rate across all industries in the US, it’s easy to see that job satisfaction levels in call centers are troublingly low. Companies need to look into ways of making the job less stressful for their employees and using modern technologies such as AI bots to help facilitate communication with customers. Call Center Technology Trends Good implementation of modern technologies is essential for improving call center statistics and metrics. Let’s check how big of a role software plays in customer support these days.   90% of businesses that use it find live chat software helpful for streamlining call center operations.  (Zippia) According to Zippia’s findings published in December 2021, 29% of all businesses and 61% of those in the B2B sector already use live chat software. 32% of businesses are implementing CRM systems to boost sales and enhance customer relationships. (Zippia) Customer Relationship Management software has an excellent track record of increasing customer engagement. Unfortunately, according to customer service and call center metrics, only a third of businesses make use of it currently. Considering that 31% of customer support teams think that their companies see their work as an expense rather than an opportunity to increase sales, this is not all that surprising. 87% of global organizations that implemented AI did so believing it would give them an advantage over the competition. (Statista) According to Statista, almost 90% of the organizations that implemented AI did so to keep up with the competition, while only 63% did so due to customer demand. Pressure to reduce costs was also a major factor (72%), along with the ability to move into new business spheres (78%). In 2020, 37% of all messages to brand social media accounts were related to customer service issues. (Sprout Social) (Statista) However, most messages (59%) were positive, as customers wished to express their happiness with an excellent experience they’ve had with the brand.  Call center statistics show that in 2020, 75% more customers used  Instagram to message businesses, while Facebook saw a 20% growth in this category. If you are considering implementing social media into customer support options, keep in mind that 18% of customers expect an immediate response; it might be worth investing in social media management tools to help your support team out.
By Vladana Donevski · April 11,2022

Leave your comment

Your email address will not be published.


1 comment
les Armstrong
6 months ago
reply arrow icon
by the way i stopped reading when you brought in the race ticket...goodness we are all just americans please!!