Small Business and Hard Facts

FOCUS FYI BUSINESS DATA & INFOGRAPHIOS BY FOCus.COM SMALL BUSINESSES and HARD FACTS How long do small businesses survive? TWO YEARS FIVE YEARS STARTING OUT LATER LATER 10 businesses 7 out of 10 5 out of 10 OUT OF BUSINESS IN BUSINESS FOR SMALL BUSINESSES IN 2009 THERE WERE 672,200 NEW BUSINESSES & 595,600 BUSINESS CLOSURES 43,546 BANKRUPTCIES SOURCE: U.S. Small Business Administration Office of Advocacy What are some of the reasons small businesses fail? Inability of management to reach decisions and act on them. Bad relations with suppliers/customers. Illness of key personnel. Bad budgeting, over- borrowing, using too much credit. Reluctance or inability to seek professional assistance. Underpricing goods sold. SOURCE: Dr. James A. McCain, Management Consultant Where are businesses failing? Small Business Closures by State (per capita) LESS CLOSURES MORE CLOSURES | Business Administration Office of Advocacy, 2009 How important are small businesses? SMALL BUSINESSES EMPLOY JUST OVER HALF OF THE COUNTRY'S PRIVATE WORKFORCE SOURCE: U.S. Small Business Administration Office of Advocacy 57.3% SMALL BUSINESS SMALL BUSINESSES MADE UP THE VAST MAJORITY OF EXPORTERS SOURCE: U.S. Department of Commerce, International Trade Administration 97% SMALL BUSINESS OF U.S. BUSINESSES 199.7% HAD LESS THAN 500 WORKERS .3% - Other SOURCE: U.S. Small Business Administration, 1997 IN 2002 WOMEN OWNED 28.2% OF NONFARM FIRMS 99% OF MINORITY OWNED BUSINESSES ARE SMALL BUSINESSES SOURCE: U.S. Department of Commerce - MBDA