Startups by the Numbers: Growing Innovation One Small Business at a Time

STARTUPS BY THE NUMBERS GROWING INNOVATION ONE SMALL BUSINESS AT A TIME THE TERM STARTUP GENERALLY REFERS TO YOUNG, FAST-GROWING COMPANIES FOCUSED ON INNOVATION AND TECHNOLOGY. ADULTS BETWEEN 25 AND 44 WHO COMPLETE COLLEGE PRODUCE MORE STARTUPS 67% OF FOUNDERS ARE CURRENTLY WORKING ON THEIR FIRST STARTUP 22% 22% OF STARTUPS HAVE ONE OR MORE FEMALE FOUNDERS THE MOST ACTIVE CITIES FOR STARTUPS IN 2013 WERE SAN FRANCISCO, NEW YORK, AND LONDON FOUNDING TEAM COMPOSITION BY GENDER FEMALE ONLY MALE & FEMALE MALE ONLY MOST ACTIVE CITIES FOR START-UPS FROM AUGUST 2012-AUGUST 2013 17% 15% 13% STARTUPS FOUNDED ANGEL FUNDED VC FUNDED EXITS 22% 22% 2% 2% 2% 3% 6% LONDON 81% 83% 85% BOSTON 75% 72% SEATTLE MOUNTAIN VIEW, CA 1129 CAMBRIDGE, MA 126 CLEAN TECH CONSUMER ENTERPRISE HEALTH HARDWARE 100 200 300 400 500 600 700 800 INTERNET SOFTWARE CARE 1s FORBES RANKED SAN DIEGO AS THE BEST CITY TO LAUNCH A STARTUP IN 2014 THE EBB & FLOW OF STARTUP GROWTH BELOW INCREASE 3% 49% 001001000 3,000,000 JOBS IN THEIR WHILE CORPORATE AMERICA DOWNSIZES, THE RATE OF STARTUPS HAS GROWN HIGH-TECH FIRM THE GREAT RECESSION CREATION WAS HIT THE STARTUP FIRST YEAR, NEW STARTUPS 69% HIGHER IN 2011 THAN IN 1980 COMMUNITY HARD. IN THE SECOND QUARTER OF 2008, THE STARTUP BIRTHRATE FELL BELOW 3% DESPITE THE 2008 DECLINE. ADD AN AVERAGE OF THE NUMBER OF SMALL 3 MILLION JOBS BUSINESSES IN THE U.S. HAS FOR THE FIRST TIME SINCE THE EARLY '90s INCREASED 49% SINCE 1982 SURVIVAL OF THE FITTEST AFTER ONE YEAR AFTER TWO YEARS AFTER THREE YEARS 25% 36% 44% OF STARTUPS FAIL OF STARTUPS FAIL OF STARTUPS FAIL PERCENT STILL OPERATING AFTER FOUR YEARS 37% 45% 47% 47% 49% 51% 54% 55% 56% 56% 58% AGRICULTURE INFORMATION TRANSPORTATION COMMUNICATION UTLITIES RETAIL CONSTRUCTION MANUFACTURING MINING WHOLESALE SERVICES EDUCATION HEALTH FINANCIAL INSURANCE REAL ESTATE 60% 60% OF STARTUPS SURVIVE TO AGE 3 AND ROUGHLY 35% MAKE IT 10 YEARS THE ROAD TO REVENUE AGES 41 TO 50 58% 73% IN 2012, 58% 0OF EXECUTIVES 73% OF FOUNDERS MAKE THE AVERAGE FOUNDER BETWEEN SAID THEY MET OR EXCEEDED LESS THAN $50K PER YEAR AGES 41 AND 50 REVENUE TARGETS MAKES THE HIGHEST AVERAGE SALARY: $60,546 THE AVERAGE FOUNDER'S UNTIL A COMPANY MAKES MORE THAN $10K PER MONTH, SALARY INCREASES WITH: THE AVERAGE FOUNDER'S SALARY DOESN'T BREAK $50K #of YEARS MONTH +50K S10.000 AGE EXPERIENCE SIZE OF TEAM SALARY BY AGE 60k $60,456 $52,339 $50,777 40k $35,403 $38,873 20k <20 21-30 31-40 41- 50 50+ CONCLUSION WHILE STARTING A SMALL BUSINESS CERTAINLY ISN'T EASY, THE DIFFICULTIES AREN'T STOPPING NEW STARTUPS FROM ENTERING THE SMALL BUSINESS SCENE. WITH THE RECESSION BEHIND US, YOUNG, INNOVATIVE COMPANIES WILL CONTINUE TO APPEAR WORLDWIDE. Sponsored By In Partnership With SURE PAYROLL A Paychex® Company GHERGICH&Co. SOURCES: forbes.com kauffman.org blog.startupcompass.co svb.com statista.com sba.gov statisticbrain.com