The United States has always been a hotbed for entrepreneurial activity. In fact, about 543,000 new businesses are started each month in the US. These businesses create approximately 1.8 million new jobs each year. Want to know more about the United States of start-ups? Here are some interesting stats and facts:
The average small business startup in the US requires about $10,000 of startup capital
With $10,000, you can start a wide range of businesses in the United States. From a food truck to a home-based business, there are many opportunities for entrepreneurs looking to start a small business. That’s why only 0.05% of startups need to raise venture capital. Common sources of capital include personal savings, loans from family and friends, business credit cards, and government grants.
For when you reach the point of expanding your startup, the Capital on Tap Business Credit Card, issued by WebBank, can provide access to funding with features like cash back and accounting software integration that can help you manage your startup costs.
Recognizing small businesses in the US were underserved by traditional banking models, Capital on Tap made the product available to US customers in March 2021, in partnership with WebBank. Though the launch took place amidst a global pandemic, more than 12,000 small business customers signed on to the platform in the first year.
David Luck, co-founder and CEO of Capital on Tap says ‘We have seen start-ups gravitating towards a business credit card due to the number of benefits such as cashback incentives and free cards for employees. The sheer number of new customers we have attracted over the last 12 months is a testament to the growing trend in start-ups becoming established small businesses.”
The United States has more startups than any other country
With 74,484 startups (as of November 2020), the United States has more startups than any other country. The US is also home to more unicorns (private companies valued at over $1 billion) than any other country, with a total of 612 unicorns (out of 1,150 unicorns worldwide). Why? The startup ecosystem in the United States is very strong and supportive. There are numerous accelerators, incubators, and co-working spaces that offer resources and guidance to entrepreneurs. There’s also a large pool of talent to choose from, as the US has some of the best colleges and universities in the world.
The tech sector is a leading force in the US startup scene
The United States has been a world leader in technology for many years, and that leadership is reflected in the number of tech companies that are founded each year. In fact, according to the Kauffmann Foundation, the US averages 20 tech companies per year that reach $100 million in revenues. That’s more than any other country in the world. This is reflected in the fact that the United States has the largest tech market in the world, worth an estimated $1.8 trillion in 2022 – that’s 33% of the global total. These numbers underscore the importance of the tech sector to the US economy and its continued leadership in the global marketplace.
The founders of the most successful US startups have an average age of 34
A study of the ages of founders of successful startups in the US has shown that the average age is 34 years old. This is in contrast to the common perception that most successful entrepreneurs are in their 20s. The study looked at startups that had achieved a valuation of $1 billion or more. For businesses valued under this threshold, the median age of startup founders was found to be 42 years old. This goes to show that, even though Mark Zuckerberg started at 19, it is never too late to start a successful business. These results suggest that although young entrepreneurs may have an advantage, it is not essential for success. What is more important is having a good idea and the drive to make it happen.
Wyoming is the most entrepreneurial state in the US
This is measured by the rate of new entrepreneurs per capita. In other words, there are more people starting businesses in Wyoming than in any other state, relative to its population. The numbers? In the last five years, Wyoming has had one new business for every six residents. This is likely due to the state’s pro-business policies, as well as its large pool of highly educated workers. However, based on several characteristics such as survival rate, annual payroll and percentage of new businesses in the last year, California, Texas, and New Jersey have been named the best three US states for entrepreneurs.
The U.S. has the highest rate of startup investment (relative to population)
In the past twelve months, venture investors have funded almost $270 billion — which comes out to about $800 for each person residing in the United States. This is the highest rate of startup investment in the world. And it’s not just tech companies that are attracting investment; a wide range of industries are represented. From food and beverage to healthcare, investors are putting their money into businesses that they believe have the potential for high growth.
The number of women-owned businesses is growing rapidly
There are now over 13 million women-owned businesses in the United States. This is an amazing achievement considering there were only 406,000 women-owned businesses 50 years ago. This shows that women are increasingly becoming a force to be reckoned with in the business world. It’s not just small businesses – large corporations are also being founded and led by women. The main industries that women-owned businesses are concentrated in are retail, personal and professional services. If you’re already a woman in business or are looking to get started, this online guide to business resources for women entrepreneurs is a great place to find information and advice.
69% of US entrepreneurs start their businesses from home
This number reflects the number of advantages that home-based businesses bring, including low overhead costs and the ability to work around family commitments. US entrepreneurs are also taking advantage of technology that makes it easier to work from home, such as video conferencing and cloud-based services. This makes it easier than ever to start a business without the need for a physical office space — which can be a major advantage when you’re just starting out. However, there are some challenges as well, such as distractions and isolation.
As you can see, the United States continues to be a global leader when it comes to startups and entrepreneurial activity. These businesses are vital to the economy, creating millions of new jobs each year. If you’re thinking about starting a business, know that you have a strong ecosystem to support you! Whether you’re a woman in business or a first-time tech entrepreneur, there are plenty of resources and role models to help you succeed.