Small businesses are expanding their roots on large scale. Many people are starting their own independent business. Leading to success and glory, these small businesses are providing major benefits to the people. As per the Office of Advocacy, a small business is a venture that constitutes fewer than 500 employees.
6 business statistics for growth and expansion that you need to know about:
- Small business is not really small: Small businesses hold a big share in the economy of any country. In the US, 99.5% of the total employer firms are a small business and they accumulate 6% of the total private sector jobs and offers around 50% of the private sector employment. These businesses generate around 46% of total private sector output and employ only 43% of the high-tech employment.
- Types of businesses: The small businesses around the US are 52% home based, 73.2% sole proprietor, 2% Franchise, 19.5% corporation, and 78.5% non-employer business. Most of the small businesses are run by a single person and does not constitute of any employee. 83% of the small businesses are founded by their owners, 11 percent are purchased, 3% inherited and 4.4% of them are transferred or gifted.
- Social influence on the customers: Customers has great influence on social media. More than 45% of the customers are influenced by social media, they will check for the online presence, reviews, and other factors before making any purchase decisions. So the small businesses are making efforts to mark their presence on social media platforms like FaceBook, Twitter and Instagram. These businesses promote their products and services on the popular social media sites. These platforms help them to connect with the target customers.
- Technology for the Growth: Technology updaters at the early stages are gaining on the competitive advantages. Small businesses are getting high-performance sales rates by updating with the latest technologies. Small businesses have increased their spending on technology by 50%. As technological advantages have been known to lift their sales growth. 66% of the small business owners are relying on mobile devices to manage various organizational operations.
- Innovations in the small business: Small businesses tend to produce and register for patents 16 times more than the large companies. Research shows that increasing the number of employees also leads to a decrease in new innovations.
- Small businesses embracing AI: Although only 11% of small businesses are using Artificial intelligence. And, around 41% of them feel that AI is too complex to be used in their business. Almost 51% of the small businesses believe that AI is an important factor in opting for the new technologies. Artificial Intelligence is not just limited to Big businesses.
The small businesses have great scopes for expansion and growth in the market. They need to be proactive and consider these 6 business statistics for growth and expansion to focus on developing their business and reaching to the new heights in this competitive world.