[ Article originally appeared in
www.venasolutions.com ]
By
Vena Solutions
The past year has presented a unique set of challenges for small businesses. Recent inflation spikes and lingering supply chain disruptions, particularly those causing productivity issues, continue to dampen profitability and stall growth for many sectors.
In this economic climate, understanding key revenue benchmarks becomes even more critical for small businesses to succeed and scale.
In this post, we’re rounding up the most compelling small business revenue statistics and exploring average revenue figures, profit margins, and industry variations. By comparing your business's performance to these benchmarks, you can identify areas for improvement and develop data-driven strategies to boost your revenue and build for the future.
Key Small Business Revenue Statistics
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American small businesses earn an average annual revenue of $1,221,884.
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The average profit margin recommended for small businesses ranges between 7% and 10%.
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Eighty-three percent of small businesses are not taking advantage of artificial intelligence.
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The amount of baby boomers who own small businesses dropped by 7% over the past year, while millennial small business owners increased by 27%.
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Many small business owners are feeling confident, with 77% saying their businesses will survive the current economy.
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Accounting for 33,185,550 companies, 99.9% of all American companies are small businesses.
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Small businesses power nearly half (43.5%) of the U.S. gross domestic product.
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Small businesses created 62.7% of all new jobs since 1995.
The Average Revenue for Small Businesses Is $1,221,884
Many small businesses generate substantial revenue—with the overall average across all US small businesses being $1,221,884—contributing significantly to the overall economy.
However, a significant portion of small businesses fall within the lower revenue brackets. Let's explore some key statistics to understand this distribution in more detail.
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The average small business revenue across all types of small businesses is $1,221,884, based on the $40.2 trillion in revenue brought in by the 32.9 million small businesses in the United States.1
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The average revenue for small businesses with no employees is $47,794, based on the 27.2 million such businesses that achieved $1.3 trillion in revenue in 2020.1
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35.6% of all private sector revenue comes from small businesses, totaling $13.3 trillion.2
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A 2023 survey of over 1,000 small business owners revealed 34% have a revenue of less than $50,000 and only 9% have a revenue of over one million dollars.3
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Despite their size, small businesses generate a remarkable 32.6% of the known value of U.S. exports.4
Visit the link below for the full article: https://www.venasolutions.com/blog/small-business-revenue-statistics
