A search through reports, national data centers, and articles was able to provide the data breakdown presented below.
Demographics of Small Business Owners
- 15.9% of small business owners are under 35 years old. Those between 35 and 49 make up 33.2% of this demographic and those between 50 and 80 make up 50.9%. Those between 50 and 59 make up 35% of this demographic.
- 57% of small business owners were born between 1946 and 1964.
- The average age of small business owners in America is 50.3 years old. According to industry-specific data, the construction industry has the youngest entrepreneurs, with an average age of 48.3. The oldest entrepreneurs are in the financial, insurance, and real estate industry: 54.1 years old.
- Most small business owners are male: 73%.
- In the past 20 years, the number of women that own small businesses has grown by 114%. This is significant as the national growth of businesses in the US within this same period is 44%.
- Small business owners make much less than traditional CEOs who earn about $162,000. Most, 86.3%, earn less than $100,000 a year. Additionally, Fundera’s study also revealed that about 30.7% do not take home a salary.
- In 2019, 78% of business owners reported that they made profits.
- Entrepreneurs with High School as their highest level of education stood at 33% while those with a Bachelor’s degree at 29%. This shows that above formal education, most believe in skills learned from experience and on-the-job learning.
Our research team searched through media sources such as The Guardian, industry reports sources such as Business Insider, and national data centers such as the American Community Survey. The data here did not address any insights into investable assets. In its stead, we have provided financial data/insights.