10 Surprising Startup Statistics

1. One-third of Small Business Owners Only Have a Highschool

Diploma 1

 33% have a highschool diploma or GED

 29% hold a Bachelor's Degree
 18% of small business owners have an Associates Degree
 16% earned a Master’s Degree
 4% completed their Doctorate

2. Baby Boomers Make Up 57% of Small Business Owners 1

 35% of small business owners are between the ages of 50 and 59

 Those aged 40 to 49 make up 25% of small business owners
 Entrepreneurs aged 60 to 69 make up 18% of all small business owners
 Small business owners age 30 to 39 equal 14% of the group
 Only 4% of small business owners are between the ages of 18 to 29
 4% of small business owners are age 70 or older

3. Funding Remains the No. 1 Challenge for Small Businesses 1

 33% of small businesses lack capital and cash flow

 That’s down from 2018, when 67% of small business owners reported a lack of capital 3

4. Nearly 80% of Business Owners Self-finance With Personal

Funds 4

 The majority of small business owners—77%—use personal funds to cover business

expenses
 Bank loans only comprise 34% of the funding used by small businesses
 Family and friends provide 16% of small business loans and contribute another 9%
through donations to the business
 Alternative online lenders are attributed to 4% of small business funding
 Personal investments from angel investors make up 3% of startup financing
 While there’s a lot of hype around venture capital, it only accounts for 3% of small
business funding
 Crowdfunding raises 2% of the funding used by small businesses
5. By Year 10, Over 70% of Startups Will Fail
6

 20% of startups fail in the first year

 50% of startups fail in the first five years

6. Of Businesses That Failed, 42% Had No Market for Their

Product 7

 42% of businesses stated their failure was caused by a lack of market for their product
 29% of business owners ran out of cash to run their businesses
 Having a product that wasn’t user-friendly led to the demise of 18% of businesses
 An alarming 14% of businesses failed because they ignored their customers
 13% of small business owners simply lost focus in their endeavors

7. Only 3% of Startups Receive Venture Capital Funding 1

 The average seed funding round is $5.6 million 8

 Of those that receive venture capital funding, only 1% will reach unicorn status 9

8. Almost 65% of Entrepreneurs Need Less Than $175,000 to

Start Their Business 10

 64% estimate they will need $50,000 to $175,000

 29% of entrepreneurs guess they’ll need $175,000 to $500,000
 7% say they will need more than $500,000

9. Chicken-related Businesses Have a Success Rate of Over 80%

 Recreational goods rental: 86% success rate 11

 Beef cattle ranching and farming: 83% success rate

 Millwork: 83% success rate
 Broilers and other meat birds: 83% success rate
 Poultry production: 83% success rate
 Chicken egg production: 82% success rate
 Logging: 82% success rate
 Portfolio management: 81% success rate
 Metal coating and engraving: 81% success rate
 Surveying and mapping: 80% success rate

10. Nearly 50% of Electronic Stores Fail to Repay Debt

 Electronic stores: 46% failure rate 11

 Miscellaneous crop farming: 45% failure rate

 Amusement arcades: 43% failure rate
 Lessors of real estate property: 41% failure rate
 Computer and office machine repair: 41% failure rate
 Automotive transmission centers: 40% failure rate
 Gasoline stations: 40% failure rate
 Diet and weight-reducing centers: 40% failure rate
 Used car dealers: 40% failure rate