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The Ultimate List of Startup & Entrepreneur Statistics (2025)

Written by Dave Lavinsky

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Table of Contents
Table of Contents

Starting a business is an exciting journey, but the numbers tell a sobering story. While entrepreneurship is the backbone of innovation and economic growth, the reality is that not every startup survives.

Did you know that over 21% of new businesses fail within their first year? And by the five-year mark, more than half will have closed their doors.

But why do some businesses thrive while others struggle?

Our data dives deep into startup survival and failure rates across different industries, states, and timeframes, uncovering crucial insights for entrepreneurs, investors, and business strategists. Here’s a sneak peek at some of the most eye-opening statistics:

  • The first two years are critical: Nearly 32.3% of startups don’t make it past their second year, with failure rates climbing as time goes on.
  • Industry matters: Some sectors see higher survival rates, while others face intense competition and volatility.
  • Location plays a role: Startups in certain states have significantly higher survival rates, while others struggle due to economic conditions, regulatory challenges, or market saturation.

By analyzing decades of data, we aim to shed light on the patterns behind startup success and failure, helping entrepreneurs make smarter, more informed decisions. Whether you’re launching a new venture or scaling an existing one, these insights will provide a data-driven perspective on what it takes to succeed.

Now, let’s dive into the numbers.

Startup Failure Statistics

21.3% of startups fail within the first year.

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32.3% of new businesses fail during the first 2 years.

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39.8% of new businesses fail during
the first 3 years.

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50.7% of new businesses fail during the first 5 years.

66.1% of new businesses fail during the first 10 years.

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Tech Startup Failure Statistics

Tech startups have the highest business failure rate at 63%.

60% of startups fail between the pre-seed and Series A funding stages.

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About 65% of the Series A startups get series B, 35% of Series A recipients fail before getting to Series B.

80% of e-commerce startups fail.

Up to 75% of Fintech startups fail.

HealthTech startups have failure rates of up to 80%.

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EduTech startups have failure rates up to 60%.

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Gaming startup failure rates are 50%.

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Businesses established in the information sector have a 1-year failure rate of 27.6%.

Information Sector businesses’ 3-year failure rate: 49.7%.

Information Sector businesses’ 5-year failure rate: 60.9%.

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Information Sector businesses’ 20-year failure rate: 86.8%.

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Information Sector businesses’ 10-year failure rate: 75.3%.

Information Sector businesses’ 15-year failure rate: 82.7%.

Technology Industry Overall: 63% failure rate within 5 years.

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Roughly 80% of tech and eCommerce startups will fail.

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25-30% of VC-backed startups still fail despite extra funding.

90% of disruptive startups fail.

Almost all startup “unicorns,” 99.9%, will fail.

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Only 6% of startups featured on the TV show, Shark Tank, fail.

There is a 95% failure rate for Blockchain and Cryptocurrency startups.

Non-Tech Startup Failure Statistics

14.6% of Agriculture, Forestry, Fishing and Hunting companies fail within the first year.

16.8% of Health Care and Social Assistance companies fail within the first year.

15.7% of Retail Trade companies fail within the first year.

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16.8% of Real Estate and Rental and Leasing companies fail within the first year.

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17.2% of Accommodation and Food Services companies fail within the first year.

17.5% of Manufacturing companies fail within the first year.

17.3% of Other Services (except Public Administration) companies fail within the first year.

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17.3% of Management of Companies and Enterprises companies fail within the first year.

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17.6% of Educational Services companies fail within the first year.

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20% of Finance and Insurance companies fail within the first year.

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18.5% of Arts, Entertainment, and Recreation companies fail within the first year.

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21.4% of Mining, Quarrying, and Oil and Gas Extraction companies fail within the first year.

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21.4% of Professional, Scientific, and Technical Services companies fail within the first year.

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22.8% of Administrative and Waste Services companies fail within the first year.

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23% of Construction companies fail within the first year.

24.2% of Information companies fail within the first year.

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Reasons for Startup Failures

14% of small businesses fail by ignoring customers.

29% of small businesses fail due to running out of cash.

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18% of small businesses fail due to pricing and cost issues.

23% of small businesses fail due to having the wrong team.

42% of small businesses fail due to a lack of market need.

14% of small businesses fail due to poor marketing.

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17% of small businesses fail due to poor product offerings.

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65% of startups with multiple founders fail due to cofounder conflicts.

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29% of startup failures are due to funding issues.

24% of small businesses fail due to misreading market demand.

23% of startup failures are due to weak founding teams.

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65% of owners cited financial issues like cashflow visibility or access to capital as a reason for failure.

19% of startups fail due to competition.

82% of 2023 business failures were due to cash flow problems.

Startup Survival/Failure Statistics by Industry/Sector

Total Private Company Survival/Failure Rates

Total Private CompaniesSurvival RateFailure Rate
1 Year Survival Rate78.7%21.3%
2 Year Survival Rate67.7%32.3%
3 Year Survival Rate60.2%39.8%
5 Year Survival Rate49.3%50.7%
10 Year Survival Rate33.9%66.1%

Survival/Failure Rates by Sector

1 Year Survival Rates by Sector Survival Rate Failure Rate
Agriculture, Forestry, Fishing and Hunting 85.4% 14.6%
Retail Trade 84.3% 15.7%
Real Estate and Rental and Leasing 83.2% 16.8%
Health Care and Social Assistance 83.2% 16.8%
Accommodation and Food Services 82.8% 17.2%
Other Services (except Public Administration) 82.7% 17.3%
Management of Companies and Enterprises 82.7% 17.3%
Manufacturing 82.5% 17.5%
Educational Services 82.4% 17.6%
Arts, Entertainment, and Recreation 81.5% 18.5%
Finance and Insurance 80.0% 20.0%
Mining, Quarrying, and Oil and Gas Extraction 78.6% 21.4%
Professional, Scientific, and Technical Services 78.6% 21.4%
Administrative and Waste Services 77.2% 22.8%
Construction 77.0% 23.0%
Information 75.8% 24.2%
Total 78.7% 21.3%
2 Year Survival Rates by Sector Survival Rate Failure Rate
Agriculture, Forestry, Fishing and Hunting 77.8% 22.2%
Retail Trade 74.2% 25.8%
Health Care and Social Assistance 73.6% 26.4%
Real Estate and Rental and Leasing 73.2% 26.8%
Other Services (except Public Administration) 73.0% 27.0%
Management of Companies and Enterprises 72.9% 27.1%
Educational Services 72.7% 27.3%
Accommodation and Food Services 72.3% 27.7%
Manufacturing 72.0% 28.0%
Arts, Entertainment, and Recreation 70.8% 29.2%
Finance and Insurance 69.1% 30.9%
Professional, Scientific, and Technical Services 67.1% 32.9%
Mining, Quarrying, and Oil and Gas Extraction 66.9% 33.1%
Administrative and Waste Services 66.1% 33.9%
Construction 66.0% 34.0%
Information 62.9% 37.1%
Total 67.7% 32.3%
3 Year Survival Rates by Sector Survival Rate Failure Rate
Agriculture, Forestry, Fishing and Hunting 71.5% 28.5%
Health Care and Social Assistance 66.9% 33.1%
Retail Trade 66.5% 33.5%
Management of Companies and Enterprises 65.6% 34.4%
Other Services (except Public Administration) 65.6% 34.4%
Real Estate and Rental and Leasing 65.5% 34.5%
Educational Services 65.4% 34.6%
Accommodation and Food Services 64.6% 35.4%
Manufacturing 64.1% 35.9%
Arts, Entertainment, and Recreation 62.5% 37.5%
Finance and Insurance 61.4% 38.6%
Professional, Scientific, and Technical Services 59.0% 41.0%
Mining, Quarrying, and Oil and Gas Extraction 58.6% 41.4%
Administrative and Waste Services 58.3% 41.7%
Construction 58.2% 41.8%
Information 54.1% 45.9%
Total 60.2% 39.8%
5 Year Survival Rates by Sector Survival Rate Failure Rate
Agriculture, Forestry, Fishing and Hunting 61.9% 38.1%
Health Care and Social Assistance 56.2% 43.8%
Management of Companies and Enterprises 55.3% 44.7%
Retail Trade 55.2% 44.8%
Educational Services 54.7% 45.3%
Other Services (except Public Administration) 54.3% 45.7%
Real Estate and Rental and Leasing 54.1% 45.9%
Accommodation and Food Services 53.4% 46.6%
Manufacturing 52.8% 47.2%
Finance and Insurance 50.7% 49.3%
Arts, Entertainment, and Recreation 50.3% 49.7%
Professional, Scientific, and Technical Services 47.4% 52.6%
Mining, Quarrying, and Oil and Gas Extraction 47.0% 53.0%
Administrative and Waste Services 47.0% 53.0%
Construction 47.0% 53.0%
Information 41.8% 58.2%
Total 49.3% 50.7%
10 Year Survival Rates by Sector Survival Rate Failure Rate
Agriculture, Forestry, Fishing and Hunting 45.5% 54.5%
Management of Companies and Enterprises 42.6% 57.4%
Health Care and Social Assistance 40.1% 59.9%
Retail Trade 38.7% 61.3%
Educational Services 38.3% 61.7%
Accommodation and Food Services 37.5% 62.5%
Other Services (except Public Administration) 37.3% 62.7%
Manufacturing 36.8% 63.2%
Real Estate and Rental and Leasing 36.2% 63.8%
Finance and Insurance 35.8% 64.2%
Arts, Entertainment, and Recreation 32.1% 67.9%
Mining, Quarrying, and Oil and Gas Extraction 31.4% 68.6%
Administrative and Waste Services 31.3% 68.7%
Professional, Scientific, and Technical Services 30.9% 69.1%
Construction 30.2% 69.8%
Information 25.4% 74.6%
Total 33.9% 66.1%

Survival/Failure Rates by # Years By Sector

Accommodation and Food Services Survival Rate Failure Rate
1 Year Survival Rate82.8%17.2%
2 Year Survival Rate72.3%27.7%
3 Year Survival Rate64.6%35.4%
5 Year Survival Rate53.4%46.6%
10 Year Survival Rate37.5%62.5%

Administrative and Waste Services Survival Rate Failure Rate
1 Year Survival Rate77.2%22.8%
2 Year Survival Rate66.1%33.9%
3 Year Survival Rate58.3%41.7%
5 Year Survival Rate47.0%53.0%
10 Year Survival Rate31.3%68.7%

Agriculture, Forestry, Fishing and Hunting Survival Rate Failure Rate
1 Year Survival Rate85.4%14.6%
2 Year Survival Rate77.8%22.2%
3 Year Survival Rate71.5%28.5%
5 Year Survival Rate61.9%38.1%
10 Year Survival Rate45.5%54.5%

Arts, Entertainment, and Recreation Survival Rate Failure Rate
1 Year Survival Rate81.5%18.5%
2 Year Survival Rate70.8%29.2%
3 Year Survival Rate62.5%37.5%
5 Year Survival Rate50.3%49.7%
10 Year Survival Rate32.1%67.9%

Construction Survival Rate Failure Rate
1 Year Survival Rate77.0%23.0%
2 Year Survival Rate66.0%34.0%
3 Year Survival Rate58.2%41.8%
5 Year Survival Rate47.0%53.0%
10 Year Survival Rate30.2%69.8%

Educational Services Survival Rate Failure Rate
1 Year Survival Rate82.4%17.6%
2 Year Survival Rate72.7%27.3%
3 Year Survival Rate65.4%34.6%
5 Year Survival Rate54.7%45.3%
10 Year Survival Rate38.3%61.7%

Finance and Insurance Survival Rate Failure Rate
1 Year Survival Rate80.0%20.0%
2 Year Survival Rate69.1%30.9%
3 Year Survival Rate61.4%38.6%
5 Year Survival Rate50.7%49.3%
10 Year Survival Rate35.8%64.2%

Health Care and Social Assistance Survival Rate Failure Rate
1 Year Survival Rate83.2%16.8%
2 Year Survival Rate73.6%26.4%
3 Year Survival Rate66.9%33.1%
5 Year Survival Rate56.2%43.8%
10 Year Survival Rate40.1%59.9%

Information Survival Rate Failure Rate
1 Year Survival Rate75.8%24.2%
2 Year Survival Rate62.9%37.1%
3 Year Survival Rate54.1%45.9%
5 Year Survival Rate41.8%58.2%
10 Year Survival Rate25.4%74.6%

Management of Companies and Enterprises Survival Rate Failure Rate
1 Year Survival Rate82.7%17.3%
2 Year Survival Rate72.9%27.1%
3 Year Survival Rate65.6%34.4%
5 Year Survival Rate55.3%44.7%
10 Year Survival Rate42.6%57.4%

Manufacturing Survival Rate Failure Rate
1 Year Survival Rate82.5%17.5%
2 Year Survival Rate72.0%28.0%
3 Year Survival Rate64.1%35.9%
5 Year Survival Rate52.8%47.2%
10 Year Survival Rate36.8%63.2%

Mining, Quarrying, and Oil and Gas Extraction Survival Rate Failure Rate
1 Year Survival Rate78.6%21.4%
2 Year Survival Rate66.9%33.1%
3 Year Survival Rate58.6%41.4%
5 Year Survival Rate47.0%53.0%
10 Year Survival Rate31.4%68.6%

Other Services (except Public Administration) Survival Rate Failure Rate
1 Year Survival Rate82.7%17.3%
2 Year Survival Rate73.0%27.0%
3 Year Survival Rate65.6%34.4%
5 Year Survival Rate54.3%45.7%
10 Year Survival Rate37.3%62.7%

Professional, Scientific, and Technical Services Survival Rate Failure Rate
1 Year Survival Rate78.6%21.4%
2 Year Survival Rate67.1%32.9%
3 Year Survival Rate59.0%41.0%
5 Year Survival Rate47.4%52.6%
10 Year Survival Rate30.9%69.1%

Real Estate and Rental and Leasing Survival Rate Failure Rate
1 Year Survival Rate83.2%16.8%
2 Year Survival Rate73.2%26.8%
3 Year Survival Rate65.5%34.5%
5 Year Survival Rate54.1%45.9%
10 Year Survival Rate36.2%63.8%

Retail Trade Survival Rate Failure Rate
1 Year Survival Rate84.3%15.7%
2 Year Survival Rate74.2%25.8%
3 Year Survival Rate66.5%33.5%
5 Year Survival Rate55.2%44.8%
10 Year Survival Rate38.7%61.3%

Startup Costs, Salaries and Ownership

27.3% of businesses had startup costs of between $250k – $500k in 2023.

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Depending on your type of business, labor costs can account for as much as 70% of total business costs.

The average salary for entrepreneurs in the US is currently $77,231 as compared to the average annual average salary of $63,795 for all job participants.

Average equipment costs range from $10,000 to $125,000 for startups.

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The average salary for self-employed individuals in the US is currently $84,305.

21% of owners started their business from scratch.

1 in 5 entrepreneurs own or manage a business with family members.

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33% of business owners purchased an existing independent business.

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Demographics - Age, Education, and Politics

The most successful entrepreneurs are middle-aged; the mean founder age for the 0.1% of fastest growing new ventures is 45 years old.

The average age of tech startup founders is 45.

A 50-year-old startup founder is 2.8 times more likely to found a successful startup as a 25-year-old founder.

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A 60 year old is 3x as likely to build a successful startup than a 30 year old in 2023.

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The average entrepreneur is 44 years old.

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6% of entrepreneurs have just a high school diploma.

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Gen X (47%) comprises the largest segment of small business owners followed by Baby Boomers (37%), Millennials (16%), Gen Z (0.5%) and Pre-baby boomers (0.5%).

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14% of entrepreneurs have an associate’s degree.

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62% of entrepreneurs have a bachelor’s degree.

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11% of entrepreneurs have a
master’s degree.
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Democratic-affiliated business owners decreased by 10% since 2021, and current account for 19% of business owners.

Republican-affiliated business owners decreased by 9% since 2021, and currently account for 42% of business owners.

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Libertarian affiliation among business owners increased by 14% since 2021, and currently account for 7% of business owners.

Owners who feel disconnected from political parties increased by 22% since 2021, and currently account for 32% of business owners.

Entrepreneurial Diversity

17.7% of all employer firms are minority-owned.

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17% of business owners are immigrants.

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20% of all U.S. businesses are owned by people of color.

25% of small business owners are women.

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75% of small business owners are men.

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0.37% identify as non-binary or other.

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76% identify as White or Caucasian.

5.19% identify as Black or African American.

4.83% identify as Asian or Asian American.

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Entrepreneurs of color started businesses due to desire to be own boss (57.58%), dissatisfaction with corporate America (45.45%), and passion pursuit (33.33%).

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4.70% identify as Hispanic, Latino, or Spanish Origin.

Most popular industry for BIPOC entrepreneurs: retail (17.35%).

Top three business priorities for entrepreneurs of color: increasing staff (49.49%), growing/remodeling (46.46%), investing in digital marketing (39.39%).

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Entrepreneurs of color identified a combined happiness level of somewhat or very happy (67.67%).

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There was a 34% increase in African-American owned firms between 2007 and 2012.

Minority-owned firms increased by 38% between 2007 and 2016.

There was a 46% increase in Hispanic-owned businesses between 2007 and 2012.

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Asian entrepreneurs run 10% of all U.S. businesses, making them the second largest racial or ethnic group.

Between 1996 to 2018, native-born business founders decreased, while immigrant entrepreneurs more than doubled.

Minority business enterprises created over 4.7 million jobs in the last 10 years.

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There are over 4 million minority-owned companies in the U.S.

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Female Entrepreneurship

In 2019, women in America started an average of 1,817 new businesses per day.

Women of color own half of all female-owned businesses in the U.S.

The rate of female”entrepreneurs” grew almost twice as fast as the total growth of female entrepreneurship.

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In 2019, female-owned businesses earned an average of $142,900 compared to $474,900 for all privately held businesses.

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1.25 million of the 3 million businesses in Texas are women-owned.

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Women-owned firms generated
$1.7 trillion in 2017.

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Female entrepreneurship grew by 114% between 1997 and 2017.

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Women owned firms employ nearly 9 million people.

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Women own more than 11.6 million firms in the U.S.

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Female entrepreneurs earn 28% less than men in the U.S.

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Across the globe, women are more likely to own sole proprietorships than men.

There are 231 million women around the world starting or running their own business.

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27% of small business owners in the U.S. are women.

49% of women-owned businesses are less than 5 years old.

As of 2022, women are slightly more likely to own a 10+ year business (23.68%) than other entrepreneurs.

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Women-owned businesses by founder’s age are as follows: Gen X (68.93%), Baby boomers (19.42%), Millennials (10.68%).

Women start their own businesses due to readiness for independence (57.89%), dissatisfaction with corporate America (37.72%), and passion pursuit (29.82%).

73.68% of women entrepreneurs report feeling somewhat or very happy.

38% of female business owners used cash to start their business.

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Retail is the most popular industry for women-led small businesses.

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Women tend to become business owners at a younger age than males.

On average, female entrepreneurs earn 91 cents for every dollar a man earns.

41.5% of entrepreneurs are women, while 58.5% are men.

Startup Challenges

17% of small businesses lack a solid business model.

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A major survival challenge for small businesses is health insurance costs.

The first year in business is the most difficult according to two-thirds of owners.

Capital or cash flow issues are cited as a challenge by 29% of startups.

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Poor teamwork and communications are sited as a challenge by 23% of startups.

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No market for product or service is sited as a challenge by 42% of startups.

It takes six months on average to hire someone for a startup.

Startup owners spend 40% of working hours on non-income generating tasks.

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28% of aspiring entrepreneurs don’t have cash to invest, or need to pay down debt before they take the plunge into self-employment.

22% of startups see recruiting and retaining employees as their biggest challenge.

1 out of 5 people haven’t taken the plunge to entrepreneurship because they are loyal to their current company.

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One in four businesses couldn’t secure needed funding, limiting growth.

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14% of startups face lack of capital and cash flow as a significant challenge.

15% of businesses reported loss of revenue due to inflation.

11% of startups saw supply chain disruptions as their biggest challenge in 2023.

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Inflation caused 27% of businesses to raise prices.

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