The world of entrepreneurship has seduced millions of people worldwide to consider a start-up venture. It continues to grab headlines with the latest tech crazes selling for billions of dollars. Silicon Valley seems to give birth to new and exciting companies every day captivating world audiences.
Entrepreneurs are a community of ambitious, creatives willing to absorb risk to make something unique happen. The essence of being an entrepreneur is to provide something different – something that has not been done before whether it is a variation of the current market or a new venture. The need to offer diversity creates many stories, facts and interesting statistics which we have tried to capture for you in our list.
1. 582 Million Entrepreneurs in the World
Planet Earth is home to 582 million people who are actively and currently self-employed. Although that only makes up about 7.5% of the world population, it is a staggering figure.
2. The US has 31 Million Entrepreneurs
According to the Global Entrepreneurship Monitor 2018/2019 there are 31 million entrepreneurs in the USA. This shows the proclivity for Americans in choosing to be their own bosses over being employees. The unemployment rate suggests that ample job opportunities exist but people still preferred the entrepreneurial life.
3. Over 750,000 New US Entrepreneurs in 2019
In a jump of over 40,000, there were 774,725 new entrepreneurs in 2019. With a record low of 560,000 in 2010, the decade has seen a steady climb back. 2019s total is the highest number of new entrepreneurs in over 20 years.
4. US ranks No. 1 for Entrepreneurship Ecosystem
The entrepreneurship ecosystem is the assessment of how favorable the conditions in each country are for start-ups. Available resources, social and economic infrastructure, support units, attitudes and performance domestically and internationally help to rank 137 countries. The US ranks 1st ahead of Switzerland, Canada and the United Kingdom.
5. Latin America and Caribbean Have the Highest Level of Entrepreneurship
The levels of total entrepreneurial activity (TEA) fluctuate wildly all over the world. Europe is reasonably conservative with rates shy of 10%. Asia is slightly more adventurous with an average of 18%. Latin America and the Caribbean sit way up at 26% with countries like Chile and Ecuador at 35%.
6. Gen X Finally Surpassed the Boomers
For what seemed like an eternity, the Boomer generation (1946-1964) held the highest rates of start-ups in the US. This continued through the 2008 recession but eventually Gen X overtook them. Gen X now makes up 44% of the new start-up community relegating the 41% Boomers to second place.
The Billionaires Club
7. China has 63% of the Female Billionaires
Entrepreneurship in China is a prosperous place for women. It does have the highest population but it also has the majority of female self-made billionaires. Of the 78 self-made female billionaires, 49 of them are from the eastern nation.
8. 621 Billionaires in America
In an era where billionaires have become the new millionaires, there are a shocking 621 US billionaires in 2020. California leads the way with 165, followed by New York with 118 and Florida with 58.
9. John D. Rockefeller was America’s First Billionaire
Earning his fortune through the oil industry in the 1870s, Rockefeller and Standard Oil controlled the majority of oil production in the US. The fortune is now shared among his family as one of the most powerful families in the United States of America.
10. California Offers the Best Entrepreneurship Supports
Californians are doing something right. A mixture of a thriving Palo Alto/Silicon Valley digital technology accelerator community, Stanford University, social and economic advantages and a primed talent pool is to blame. The theme of success breeds success contributes to the prosperity.
11. Y-Combinator Accelerator Unit is the Crown Jewel of Supports
The Y-Combinator is a start-up incubator based in Silicon Valley. If a start-up is accepted, they are given all the resources needed to be successful including seed capital until they become eligible for large venture capital investment. 2000 companies worth over $100 billion have come from Y-Combinator including Dropbox, Airbnb, Doordash, Stripe and Twitch.
Entrepreneurial Industries and Characteristics
12. Finance, Real-Estate & Business Services overtook Wholesale & Retail
In somewhat of a sea change of entrepreneurship in the US, the finance, real-estate and business sectors (27%) have overtaken the wholesale and retail industries (26%). Historically, most entrepreneurship occurs in the retail sector given that it has lower barriers to entry but that is no longer the case.
13. Information & Communication Technologies bringing up the rear
It may seem strange to many but internet companies and communication technology only account for 7% of the US entrepreneurial activity per capita.
14. Home-Based Start-Ups Most Popular
Start-ups developed in the entrepreneur’s home make up 69% of all new businesses and only drop to 59% by the time they become established. The mother’s basement dweller doesn’t seem so underachieving now.
15. Formal Education Level Isn’t Important
The further you go in the educational levels, the lower the rate of entrepreneurship. High school and associate degrees account for 61% of all new start-ups while masters and doctorates only account for 22%.
Weirdest Entrepreneurial Successes
16. Alex Tew Sold Pixels
Genius or insanity, he made $1 million. Mr. Tew created a page called the Million Dollar Homepage that was blank and successfully auctioned off each pixel for $1.
17. Chris Clark Bought and Sold a Domain Name
It may be cheeky but it is also a thinking person’s game. Chris Clark purchased the domain name pizza.com for $20 in 1994. He sold it to the highest bidder in 2008 for $2.6 million. Be observant! There are many ways to find new ideas!
18. Goggles for Your Dog
Creativity is king when it comes to entrepreneurship and few are more adorable than Roni Di Lullo. Her dog failing to catch a ball because of the sun led her to creating Doggles. It not rakes in over $3 million a year.
19. Entrepreneurship Rocks!
In 1975, Gary Dahl fathomed that the best pets would never need to be fed, walked or brought to the vet. With this in mind, he offered rocks as a new pet. He sold each for $1 dollar making over a million in the first year.
Concerning Stats for Entrepreneurs
20. 90% Failure Rates of New Start-Ups
This 90% rate is calculated based on failure at any point of the lifespan. First year failure is roughly 20%. Up to 42% of these failures are due to the lack of demand with pricing (18%), non-user friendly products (17%), poor marketing (14%) and ignoring customers (14%) also to blame. It gives quite a bit of credence to the market research needed to start out.
21. 67% Use Personal Cash to Overcome Financial Problems
According to the Federal Reserve, as many as 67% of new entrepreneurs use their personal finances to cover the expenses of their companies. This is largely due to difficulties in securing capital from other sources and mounting cash flow issues.
22. Average New Entrepreneur Salary is $66,000
Fantastic news to some but likely not to all. Take into consideration that averages include entrepreneurs who have exploded into wealth and bring up the average by themselves. Nevertheless, enterprise is a viable source of income.
23. 30% of Start-Up Owners Don’t Take a Salary
While the average of a start-up founder is $66,373, up to 30% of the start-up owners in the US do not take a wage. In addition over 70% reports working considerably more than 40 hours per week.
Uplifting Stats for Entrepreneurs
24. 40% of Entrepreneurs Trying to Make a Difference
According to the GEM, over 40% of 150,000 entrepreneurs want to make a difference in the world and see enterprise as their vehicle for doing so. South Africa and Guatemala gave the highest result for those motivated by making a difference.
25. 48% of US Entrepreneurs are Very Happy
In a small business trends survey, 48% of new start-up owners consider themselves to be very happy. 28% are somewhat happy with unhappiness levels making up 13% of the study.
26. No Regrets!
While the study only surveyed 409 business owners, 92% of respondents said they do not regret becoming an entrepreneur.
27. Being Your Own Boss is Main Motivation
Being your own boss was the motivation of 55% of new entrepreneur’s motivations for starting. This is followed by pursuing your own passion which accounted for 39%.
28. Female Entrepreneurship is on the Rise
Entrepreneurship was traditionally more popular with men than women for numerous social and economic reasons. Thankfully, the gap is beginning to close and close quickly. Entrepreneurship among women has increased from 9% of the female populace in 2015 to 13.6% in 2018, just 4% behind men.
29. Economic Impacts & Job Creation
64% of jobs between 1993 and 2011 were directly attributed to entrepreneurship. This is an incredible statistic and considering civil service account for at least 15% it becomes even more impressive.
30. Work in the Industry before Starting Out
Start-ups founded by someone who has worked in the industry before launching are 125% more likely to succeed than people with no experience.
Interesting Start-Up Stories around the World
31. TikTok Sits on the Throne
Success stories don’t come much more obscene than that of ByteDance, owner of Douyin and TikTok. Multiple brands are largely responsible but the craze of TikTok improved the valuation of ByteDance to over $100 billion.
32. Japan has the Least Entrepreneurial Population
Japan has created some amazing products in the world but in recent years has moved away from entrepreneurship. Only 1.3% of the Japanese population are entrepreneurs.
33. 30% of New Entrepreneurs in US are Immigrant
Immigrants come under the microscope regularly but create a positive economic impact. Immigrants were responsible for 30% of the new entrepreneur numbers in 2018. Even more surprising, in 2016 immigrants were twice as likely to start a new company in the US as US born individuals.
34. 70% of Entrepreneurs are married
It seems a rather arbitrary statistic and draw your own hypothesis but according to the GEM as much as 70% of entrepreneurs are married.
35. Less than 1% come from extreme income backgrounds
Both the high and low end of the income scales are the least likely to produce entrepreneurs. Having no means to start-up or having no financial incentive to take risk means very little entrepreneurship is developed by people who come from extreme financial backgrounds.
36. Unemployment to Self-Employment
Countries around the world recognize the stimulus effect that entrepreneurship has on economic growth. Finland, Romania and Ireland are 3 examples of countries that offer successful social welfare grants to encourage people out of unemployment without risk.
37. Swiss Innovation
Switzerland built an incredible infrastructure of information and communication technologies, early stage mentors and a network of supports for entrepreneurs. Most impressive is the Switzerland Global Enterprise developed a platform for start-ups to directly access export markets and 21 worldwide innovation hubs.
38. Co-working Spaces Increase by 89% in 12 months
The modern world has turned its attention to freelancing and solo-entrepreneurship. With a 300% jump since 2010, many entrepreneurs opt to sublet office space and collocate with other freelancers with the intention of networking.
39. Worldwide Funding Sources Increasing
Sources of funding for aspiring entrepreneurs continue to increase. The digital age brought crowdfunding, Kickstarters and platform based funding to a whole new level. The traditional methods of self-funding, bank loans, seed capital and others still exist but public interest has taken off.
40. SoftBank Commitments
Softbank, Japan has stirred controversy due to a shift in recent investment strategies. Despite this, it continues to offer incredible capital through its Vision Fund for tech start-ups. $98 billion was made available with a further $5 billion in Latin America.
41. Global Entrepreneurship Week is here
Every November, Global Entrepreneurship Week connects millions of innovators and entrepreneurs around the world to share ideas and source venture capital. Originating in the US, it has expanded to 170 countries around the globe with many famous entrepreneurs attending events.