Although generally on this blog we talk about custom envelope design and/or how they can be used for marketing, we occassionally like to talk about issues and news related to small businesses. The majority of our customers tend to be small businesses, and PrecisionEnvelope.com is a small business (According to the SBA, technically any company with less than 500 employees is a small business). So we recently were doing some research regarding small business and we just happened to come across a collection of surprising, interesting and just plain shocking American small business statistics. Check them out, and let us know what you think in the comments!
- 52% of All Small Businesses are Home-based: When you've got a great idea but no money, sometimes your only choice is to work out of your home. In fact, dozens of hugely successful companies (including Apple and Mattel) started out of the home.
- Fastest Growing Small Business Sectors are auto repair shops, beauty salons & dry cleaners: If in your neighborhood it feels like there's a beauty salon or dry cleaner on every corner, now you know why!
- Over Half a Million New Business Are Started Each Month: In total 543,000 small businesses are started in the United States each month.
- The #1 Reason Why Start Ups Fail is they Scale Prematurely: While having a long term business plan is great, expanding the business before it's ready can lead to you closing the doors.
- 50-70% of Small Businesses Fail within the First 18 Months: While those first few years are the toughest, if you can get past that your liklihood to succeed will increase significantly.
- But 86% of Small Business Owners Believe They Can Do Anything they Set their Minds to: Sometimes a great idea and a can do attitude is all you need to make it work!
Small Business Failure Rate by Industry:
- Manufacturing: 48.4%
- Services: 47.6%
- Wholesaling & Agriculture: 47.4%
- Retailing: 41.1%
- Finance, Insurance and Real Estate: 39.6%
- Transportation, Communications and Utiliies: 39.4%
- Construction: 36.4%
(Sources: http://smallbiztrends.com/2012/09/failure-rates-by-sector-the-real-numbers.html. http://www.valuewalk.com/2013/09/small-businesses-infographic/, http://www.businessinsider.com/small-business-owners-are-optimistic-2013-6)