The 12 Most Important “Startup Statistics” of 2019

The abundance of opportunities has led to increased competition. Entrepreneurs face higher stakes and new challenges.

But venture capital is flowing freely in America’s booming business economy.

Startup failure rates are sobering, but given the potential rewards, a record number of entrepreneurs and their backers are prepared to take a risk

Whether you’re launching a business or considering an investment, you’ll find all the essential statistics here

1. More than 69% of American entrepreneurs start their businesses at home.

Curiously, working from home isn’t limited to startups. While 55% of new businesses start in the garage, 59% of established small businesses are still run from their founders’ homes.

2. Only 50% of businesses with employees survive past the first five years.

A third of all of the young companies fail within two years and about half within five, when the attrition rate falls.

Small business statistics like these prove that good business strategies and quality management are key to pushing through that initial volatile period.

3. 64% of American small business owners are currently hiring

In fact, employers report that it is increasingly hard to find finding qualified workers. Small business stats show that a staggering 54% of firms report finding very few qualified applicants – or even none – for open positions.

4. 30% of American small businesses feel like now is a good time to expand.

The NFIB’s May 2019 shows that optimism has reached record-high levels in startups and small businesses. Surveyed companies expect to expand operations, boost capital spending, and increase sales.

5. Homeowners are 10% more likely to start a new business.

Small business startup statistics demonstrate that prudent entrepreneurs understand that a solid financial foundation – like owning a house – is necessary for starting a new business venture.

Not only does a house allow you to set up your initial base of operations in the garage, but it can also serve as collateral for small business loans.

6. A 60-year-old startup founder is three times more likely to succeed than a 30-year-old founder.

The same study found that a 50-year-old is more than twice as likely to achieve success as a 30-year-old founder, demonstrating that experience is one of the most important factors when it comes to creating a thriving business.

7.42% of startups fail because they offer products or services that the market doesn’t need.

Startup statistics from 2018 show that a good business idea is all about demand. It doesn’t matter how good your product or service is if no one wants it.

Running out of cash is the second most common reason for failure, at 29%. Having the wrong team for the job came in third, with 23% of founders identifying it as the main reason for their lack of success.

8.79.7% of U.S. small businesses employ only the founder.

Four out of five companies are one-person shops. Startup statistics from 2016 and later show that 16.6% of small businesses have fewer than 10 employees and that only 2.2% have 10 to 19 people working for them.

9. The number of health, beauty, and fitness startups increased by 34% in 2018.

Small business statistics from 2018 record a sharp increase in these lifestyle-related startups – evidence of a generation that’s increasingly focused on wellness but business services are still the biggest part of the market, representing 11% of startups and small businesses.

10. Advanced manufacturing and robotics tech startups are enjoying growth rates of 189.4%

It is artificial intelligence startups that are driving huge growth. Tech startup statistics make it clear that investors are bullish on future technology.

11. Immigrant entrepreneurs account for 25% of all new businesses in the United States.

Startup business statistics show that the number of companies started by immigrants is the highest in California, New York, and New Jersey where they represent 40% of all new startups.

12.81% of American small-business owners work overtime.

Small-business owners generally work much longer hours than their employees. In addition to staying late after work, startup statistics from 2019 show that 89% regularly work weekends.