Entrepreneur Statistics: Industry Insights

Entrepreneur Statistics

Are you looking for a piece of trustworthy statistical information on entrepreneurs?

Entrepreneurship has been a popular topic of interest for quite some time now.

Many ambitious and energetic youngsters have turned to entrepreneurship attempting to be their own bosses.

However, there’s one problem:

It’s hard to find sources that would cover all the most important stats and facts on entrepreneurs.

That’s why:

…I’ve pulled together some of the most interesting and relevant entrepreneur statistics, facts, and trends that you should know if you’re involved in this market.

Key Takeaways

Here are the key takeaways from this article on entrepreneur statistics:

  1. Global Entrepreneur Statistics:
    • There are approximately 594 million entrepreneurs in the world in 2023, which is around 7.4% of the total population. This is a 2.1% increase from the 582 million estimated in 2020.
    • The growth in entrepreneurship positively impacts job creation, innovation, and economic development.
  2. Entrepreneur Statistics by Country:
    • India leads in the number of entrepreneurs, followed by China, the United States, and Brazil.
    • The United States has an estimated 54 million entrepreneurs, representing about 32% of the adult workforce.
    • China has over 64 million entrepreneurs, representing about 5% of the adult population.
    • India boasts approximately 104 million entrepreneurs, which is about 11.5% of the adult population.
  3. Demographic Statistics of Entrepreneurs:
    • Women constitute about 43% of entrepreneurs worldwide, with the largest percentage of female entrepreneurs being between 40 and 59 years old.
    • It’s estimated that there are approximately 252 million female entrepreneurs globally. Additionally, another 153 million women are operating established businesses.
    • The age distribution of entrepreneurs worldwide is as follows: 25-34 years old (32%), 35-44 years old (24%), 18-24 years old (19%), 45-54 years old (14%), 55-64 years old (8%), and 65+ years old (3%).
  4. Entrepreneur Education Statistics:
    • 64% of entrepreneurs have a bachelor’s degree, 14% have an associate’s degree, 11% have a master’s degree, 6% have a high school diploma, and 6% have other degrees.
  5. Other Entrepreneur Statistics:
    • Major motivations for entrepreneurs include being their own boss (62%), pursuing their passion (60%), filling a need in their community (52%), building wealth (51%), and creating jobs (42%).
    • Approximately 20% of new businesses fail during the first two years, 45% during the first five years, and 65% during the first ten years. Only 25% of new businesses make it to 15 years or more.
  6. Key Trends in Entrepreneurship:
    • There’s a rise in social entrepreneurship, growth of the gig economy, increasing importance of technology, and globalization of entrepreneurship.

Global Entrepreneur Statistics

The number of entrepreneurs worldwide is growing every year.

Why?

Technology is advancing, and more people have access to information. Plus, schools are teaching students about starting their own businesses.

Many new businesses are popping up in emerging markets. Young people, with their tech-savvy skills, are leading the charge. They’re starting online businesses, reaching people globally, and changing the way we think about traditional work.

Governments see the benefits too. They’re making it easier to start a business by offering tax breaks and funding. But it’s not all smooth sailing. With more businesses, there’s more competition. And not everyone can easily get the money they need to start.

The rise in global entrepreneurs is exciting. With the right support, they can make a big difference in our economy.

Let’s take a closer look at the global number of entrepreneurs and how they influence our lives.

How Many Entrepreneurs Are There in the World Right Now?

How Many Entrepreneurs Are There in the World

According to our research, there are approximately 594 million entrepreneurs in the world in 2023. That is around 7.4% of the total population.

This number marks a subtle increase from the 582 million estimated in 2020, representing approximately a 2.1% increase over three years.1

With a 2.1% increase, signifies a sustained entrepreneurial spirit and a level of resilience among aspiring business owners amidst global challenges.

The steady rise may be attributed to evolving market opportunities, technological advancements, or favorable entrepreneurial ecosystems.

The growth in entrepreneurship is having a positive impact on job creation, innovation, and economic development, reflecting a positive, albeit slow, movement towards a more entrepreneurial global economy with potential for further expansion given the right supportive mechanisms and resources.

Entrepreneur Statistics by Country

To understand the global entrepreneurial landscape, it is crucial to delve into the number of entrepreneurs by country.

This approach allows for a nuanced exploration of how different economic, demographic, and societal factors converge to shape the entrepreneurial ecosystems in various regions of the world.

Here is a chart that shows the top 10 countries by number of entrepreneurs.

Number of Entrepreneurs by Country

As you can see, India leads the list significantly outpacing the other countries.

This is followed by China, the United States, and Brazil.

How Many Entrepreneurs Are In the United States?

Copy of How Many Entrepreneurs Are the United States

There are an estimated 54 million entrepreneurs in the United States.1

This number represents about 32% of the adult workforce.

The number of entrepreneurs in the US has been growing in recent years.

This is due to a number of factors, including the increasing availability of technology, the growing global economy, and the rise of the gig economy.

This trend showcases a dynamic and evolving American workforce.

The growth in entrepreneurship not only reflects a diversifying economy but also the aspiration of individuals to have more autonomy and direct impact through their work.

How Many Entrepreneurs Are In China?

How Many Entrepreneurs Are in China

There were over 64 million entrepreneurs and self-employed in China in 2023.1

This number represents about 5% of the adult population.

This is due to a number of factors, including the government’s support for entrepreneurship, the growing middle class, and the increasing availability of technology.

How Many Entrepreneurs Are in India?

How Many Entrepreneurs Are in India

There are approximately 104 million entrepreneurs in India or about 11.5% of the adult population in the country.1

This substantial figure is indicative of India’s thriving entrepreneurial ecosystem, driven by both necessity and opportunity, across its diverse sectors and regions.

The data reflects a vibrant entrepreneurial ecosystem in the country.

The necessity-driven entrepreneurship likely stems from individuals seeking self-employment as a means to livelihood, while opportunity-driven entrepreneurship could be fueled by India’s growing economy, demographic dividend, and increasing access to resources and technology.

Demographic Statistics of Entrepreneurs

The demographic statistics of entrepreneurs vary depending on the country and industry.

However, some general trends can be observed.

Here are some notable demographic statistics of entrepreneurs.

Entrepreneur Statistics by Gender

Women make up about 43% of entrepreneurs worldwide compared with 57% of men

Women make up about 43% of entrepreneurs worldwide compared with 57% of men.2

This number is growing, but women are still underrepresented in the world of entrepreneurship.

This is due to a number of factors, including lack of access to capital, discrimination, and unpaid care work.

The largest percentage of female entrepreneurs globally are between 40 and 59 years old, which could be indicative of the time and experience required to establish and grow a business.2

Despite these challenges, there are a growing number of successful female entrepreneurs.

Here are some interesting facts about female entrepreneurs:

  • Female entrepreneurs are more likely than male entrepreneurs to start businesses that are socially or environmentally responsible.3
  • Female entrepreneurs are more likely than male entrepreneurs to reinvest their profits back into their businesses.4
  • Female entrepreneurs are more likely than male entrepreneurs to create jobs.5

Despite these positive trends, there is still more work to be done to support female entrepreneurs.

Governments, businesses, and investors can play a role in creating a more level playing field for female entrepreneurs.

How Many Female Entrepreneurs Are There?

How Many Female Entrepreneurs Are There

It’s estimated that there are approximately 252 million female entrepreneurs globally.

And another 153 million women are operating established businesses.6

It’s worth noting that while women’s entrepreneurship is growing around the world, men still outnumber women when it comes to business ownership.

This surge signifies the breaking of traditional barriers, as women from diverse backgrounds and cultures are stepping forward to lead, innovate, and drive economic growth.

Entrepreneur Statistics by Age

A Breakdown of the Age Distribution of Entrepreneurs Worldwide (1)

Here is a breakdown of the age distribution of entrepreneurs worldwide:7

  • 18-24 years old: 19%
  • 25-34 years old: 32%
  • 35-44 years old: 24%
  • 45-54 years old: 14%
  • 55-64 years old: 8%
  • 65+ years old: 3%

As you can see, the majority of entrepreneurs worldwide are between the ages of 25 and 44.

However, there are also a significant number of entrepreneurs who are younger or older than this age group.

It is important to note that these are just general trends.

There are many successful entrepreneurs who do not fit into these categories.

What Is the Average Age of an Entrepreneur?

What Is the Average Age of an Entrepreneur

The average age of entrepreneurs worldwide is 42 years old (at the time they founded their companies).7.

However, there is a significant variation in the age distribution of entrepreneurs across different countries and industries.

For example, in developed countries, the average age of entrepreneurs is higher than in developing countries.

This is likely due to the fact that entrepreneurs in developed countries are more likely to have a college education and to have accumulated the capital necessary to start a business.

In addition, the age distribution of entrepreneurs varies depending on the industry.

For example, the average age of entrepreneurs in the technology industry is lower than the average age of entrepreneurs in other industries.

This is likely due to the fact that the technology industry is more dynamic and rapidly changing, which attracts younger entrepreneurs.

Entrepreneur Statistics by Industry

The Most Popular Industries for Entrepreneurs Worldwide

The top industries for entrepreneurship are:8

  • Service businesses (33%)
  • Retail businesses (25%)
  • Technology businesses (12%)
  • Agriculture businesses (11%)
  • Manufacturing businesses (10%)

Other industries that are popular with entrepreneurs include healthcare, education, and construction.

It is important to note that these are just the most popular industries for entrepreneurs. There are many successful entrepreneurs in other industries as well.

Here are some reasons why these industries are popular with entrepreneurs:

  • Service businesses: Service businesses are relatively easy to start and operate, and they can be run from home.
  • Retail businesses: Retail businesses offer a wide range of opportunities for entrepreneurs, and they can be scaled up or down depending on the entrepreneur’s needs.
  • Technology businesses: Technology businesses are growing rapidly, and they offer entrepreneurs the opportunity to create innovative products and services.
  • Agriculture businesses: Agriculture businesses are essential to the global economy, and they offer entrepreneurs the opportunity to work with nature and to produce food and other products that people need.
  • Manufacturing businesses: Manufacturing businesses offer entrepreneurs the opportunity to create products that people use every day.

Entrepreneur Statistics by Race and Ethnicity

Entrepreneur Demographics by Race

Entrepreneurship statistics by race and ethnicity for the year 2023 reveal the following breakdowns:9

Entrepreneur Race Percentages
White 67.1%
Hispanic or Latino 15.4%
Asian 6.4%
Black or African-American 6.3%
Unknown 4.3%
Other 0.5%

So, as you can see, the most common ethnicity among entrepreneurs is White, which makes up 67.1% of all entrepreneurs.

Comparatively, 15.4% of entrepreneurs are Hispanic or Latino and 6.4% of entrepreneurs are Asian.

Here are some insights and conclusions that can be drawn from these statistics:

  1. Predominance of White Entrepreneurs:
    • The highest percentage of entrepreneurs being White (67.1%) underscores a long-standing trend of racial disparities in business ownership. This predominance could be influenced by various factors including access to capital, networks, and educational resources which historically have been more accessible to White individuals.
  2. Growing Hispanic or Latino Entrepreneurial Activity:
    • The 15.4% representation of Hispanic or Latino entrepreneurs is notable and might indicate a growing trend of entrepreneurial activity within this demographic. This growth could be fueled by the increasing Hispanic population in the US and their expanding economic influence.
  3. Presence of Asian Entrepreneurs:
    • Asian entrepreneurs, though constituting a smaller percentage (6.4%), often have a significant impact in certain sectors like technology and retail. Their representation might also reflect a strong tradition of entrepreneurship within Asian communities.
  4. Comparatively Lower Representation of Black or African American Entrepreneurs:
    • The statistics show a relatively lower representation of Black or African American entrepreneurs at 6.3%. This could highlight systemic challenges such as lack of access to capital or mentorship opportunities that this group may face.
  5. Opportunities for Addressing Disparities:
    • The disparities in entrepreneurial representation among different racial and ethnic groups highlight the importance of creating more inclusive opportunities. Addressing barriers to entry and providing support in the form of education, funding, and mentorship can contribute to a more diversified entrepreneurial landscape.
  6. Potential for Economic Growth and Innovation:
    • Encouraging and supporting entrepreneurship across all racial and ethnic groups can lead to a more robust and innovative economy. Diverse perspectives in business can foster innovation, create jobs, and drive economic growth.
  7. Implications for Policy and Practice:
    • These statistics may serve as a valuable resource for policymakers, educators, and business leaders in understanding the current state of racial and ethnic diversity in entrepreneurship and in devising strategies to promote inclusivity and equity in the entrepreneurial ecosystem.

Overall, while the data reveals existing racial and ethnic disparities in entrepreneurship, it also hints at the potential for a more inclusive entrepreneurial ecosystem should appropriate measures be taken to address these disparities.

Entrepreneur Education Statistics

Distribution of Educational Levels Among Entrepreneurs

According to Zippia, the percentage of entrepreneurs that have pursued upper education is as follows:

  • 64% of entrepreneurs have a bachelor’s degree.
  • 14% of entrepreneurs have an associate’s degree.
  • 11% of entrepreneurs have a master’s degree.
  • 6% of entrepreneurs have a high school diploma.
  • 6% of entrepreneurs have other degrees.9

As you can see, the most common degree for entrepreneurs is a bachelor’s degree, with 62% of entrepreneurs earning that degree.

The second and third most common degree levels are associate degree at 14% and associate degree degree at 11%.

The combined percentage of entrepreneurs with an associate’s, bachelor’s, or master’s degree amounts to 89%, showcasing a strong correlation between entrepreneurial endeavors and higher education.

However, the presence of 6% of entrepreneurs with just a high school diploma and another 6% with other types of degrees highlights that while formal education is common, it’s not an exclusive pathway to entrepreneurship.

This diversity in educational attainment underscores the accessibility and varied entry points into entrepreneurship, accommodating a wide range of educational backgrounds and life experiences.

The data might also reflect the importance of formal education in providing necessary skills and knowledge, while at the same time, illustrating the potential of self-driven learning and alternative educational pathways in fostering entrepreneurial success.

Other Entrepreneur Statistics

Entrepreneurship is a dynamic field with many interesting statistics that provide insight into the challenges and successes of starting and running a business.

Here are some general statistics and insights related to entrepreneurship:

Entrepreneur Motivations

The motivations behind individuals choosing the entrepreneurial path are varied.

Here are some statistical insights into entrepreneur motivations from different sources:

  1. To be their own boss (62%)
  2. Pursue their passion (60%)
  3. Fill a need in their community (52%)
  4. Build wealth (51%)
  5. Create jobs (42%)10

Entrepreneurship is a complex journey, drawing individuals for a myriad of reasons.

A predominant motivation, as indicated by 62%, is the allure of autonomy and the desire to be one’s own boss.

Almost equally compelling is the drive to pursue personal passions, which reflects the intertwining of professional and personal aspirations for many entrepreneurs.

More than half are also inspired by the intent to address specific needs within their community, underscoring the close relationship between entrepreneurship and societal impact.

The pursuit of financial stability and wealth, echoed by 51%, showcases the economic aspirations tied to this journey.

Furthermore, the motivation to create jobs for 42% of entrepreneurs highlights a broader vision that extends beyond personal gain to fostering communal growth and prosperity.

Entrepreneur Success Rates

According to Investopedia:

  • Approximately 20% of new businesses fail during the first two years of being open
  • 45% during the first five years
  • and 65% during the first 10 years

Only 25% of new businesses make it to 15 years or more.11

However, it is important to note that these are just averages.

There are many businesses that succeed beyond the first year, five years, and even ten years.

Plenty of businesses buck the trend, flourishing well beyond their early years.

The entrepreneurial journey is filled with uncertainties, but with resilience, many find success against the odds.

Entrepreneur Impact

Entrepreneurs undeniably play a critical role in fostering economic growth, innovation, and job creation, all of which contribute significantly to the Gross Domestic Product (GDP) of a nation.

Here’s a detailed breakdown based on statistical evidence and scholarly insights:

Job Creation

  1. Entrepreneurs, especially those running small businesses, are pivotal in job creation. In 2019 alone, small businesses created 1.6 million net new jobs, with firms employing fewer than 20 workers generating 1.1 million net new jobs. Notably, employer firms with fewer than 500 workers employed 46.4% of private sector payrolls in 201812
  2. Entrepreneurial ventures create jobs both directly by hiring employees and indirectly by stimulating demand for goods and services, which in turn, leads to job creation in other sectors like manufacturing, packaging, and fulfillment.13

Economic Growth

  1. Entrepreneurs enhance economic growth by introducing innovative technologies, products, and services. Increased competition driven by entrepreneurs challenges existing firms to become more competitive, which in the long run boosts economic productivity and growth​.14
  2. An empirical analysis based on data from South American countries revealed a noteworthy relationship between entrepreneurial activity and GDP growth, signifying a significant contribution of entrepreneurship to economic growth.15

GDP Contribution

  1. The value created by startups is nearly on par with the GDP of a G7 economy. In 2021, startup funding surpassed $600 billion, underlining the significant economic value generated by entrepreneurial activity.16
  2. The contribution of entrepreneurial activity, aspirations, and attitudes to Gross Domestic Product (GDP) per capita has been acknowledged, with different measures of entrepreneurship explaining economic growth.17

Key Trends in Entrepreneurship

Here are some key trends in entrepreneurship:

  1. The rise of social entrepreneurship: Social entrepreneurship is the practice of starting and running businesses that are designed to solve social or environmental problems. Social entrepreneurship is becoming increasingly popular, as more and more people are looking for ways to use their businesses to make a positive impact on the world.18
  2. The growth of the gig economy: The gig economy is a labor market characterized by short-term contracts and independent work. The gig economy is growing rapidly, as more and more people are choosing to work independently. This is creating new opportunities for entrepreneurs, as they can start businesses that cater to the needs of gig workers.19
  3. The increasing importance of technology: Technology is playing an increasingly important role in entrepreneurship. Entrepreneurs are using technology to develop new products and services, to reach new customers, and to operate their businesses more efficiently.20
  4. The globalization of entrepreneurship: Entrepreneurship is becoming increasingly globalized. Entrepreneurs are starting businesses that operate in multiple countries, and they are targeting customers all over the world. This is creating new opportunities for entrepreneurs, but it is also creating new challenges.21

In addition to these general trends, there are also a number of specific trends that are emerging in different industries.

For example, in the healthcare industry, there is a growing trend of entrepreneurs starting businesses that focus on preventive care and personalized medicine.22

In the education industry, there is a growing trend of entrepreneurs starting businesses that offer online education and personalized learning.23

Entrepreneurs who are able to identify and capitalize on these trends will be well-positioned for success.

Conclusion

Entrepreneurship isn’t just for one kind of person.

People of all ages, backgrounds, and education levels are starting businesses.

Most entrepreneurs are aged 25-44, but age is just a number when it comes to success.

From tech to services, there’s a wide range of industries they dive into.

But, there’s still work to do to make the playing field equal for everyone, especially across races.

While many entrepreneurs have degrees, some prove you don’t need one to make it big.

All in all, these facts give us a clearer picture of today’s business starters.

The Future of Entrepreneurship

Entrepreneurship is a critical driver of economic growth and innovation.

In the future, we can expect to see more people become entrepreneurs, as technology makes it easier to start and grow a business.

In conclusion, the future of entrepreneurship is promising, dynamic, and inclusive.

It will be characterized by a blend of diverse ages, backgrounds, motivations, and sectors, all moving towards a globally connected, technologically advanced, and socially responsible business landscape.

References And Data Sources:

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2. Mag, E. (2022, March 7). Female entrepreneurship reaches record levels, with 43% of entrepreneurs being female. Essex Magazine. https://www.essexmagazine.co.uk/2022/03/female-entrepreneurship-reaches-record-levels-with-43-of-entrepreneurs-being-female/

3. Stengel, G. (2021, January 8). Women entrepreneurs fuel social change and economic growth. Forbes. https://www.forbes.com/sites/geristengel/2016/02/03/women-entrepreneurs-fuel-social-change-and-economic-growth/

4. Carranza, Eliana; Dhakal, Chandra; Love, Inessa. 2018. Female Entrepreneurs: How and Why Are They Different?. Jobs Working Paper; No. 20. © World Bank, Washington, DC. http://hdl.handle.net/10986/31004 License: CC BY 3.0 IGO. http://hdl.handle.net/10986/31004

5. Kramer, J. (2016, June 10). Women entrepreneurs are creating more jobs than men. Glamour. https://www.glamour.com/story/women-entrepreneurs-are-creating-more-jobs-than-men

6.College, B. (2019, November 18). More than 250m women worldwide are entrepreneurs, according to the Global Entrepreneurship Monitor Women’s report from Babson College and Smith College. PR Newswire: press release distribution, targeting, monitoring and marketing. https://www.prnewswire.com/news-releases/more-than-250m-women-worldwide-are-entrepreneurs-according-to-the-global-entrepreneurship-monitor-womens-report-from-babson-college-and-smith-college-300960196.html

7. Hill, S., Ionescu-Somers, A., Coduras, A., Guerrero, M., Roomi, M. A., Bosma, N., … & Shay, J. (2022, February). Global entrepreneurship monitor 2021/2022 global report: opportunity amid disruption. In Expo 2020 Dubai. https://www.gemconsortium.org/report/gem-20212022-global-report-opportunity-amid-disruption 

8. Hill, S., Ionescu-Somers, A., Coduras Martínez, A., Guerrero, M., Menipaz, E., Boutaleb, F., … & Shay, J. (2023). Global Entrepreneurship Monitor 2022/2023 Global Report: Adapting to a” New Normal”. https://gemconsortium.org/report/20222023-global-entrepreneurship-monitor-global-report-adapting-to-a-new-normal-2

9. Get the job you really want. Zippia. (n.d.). https://www.zippia.com/entrepreneur-jobs/demographics/

10. Entrepreneurship statistics: Current success and looking ahead. Maryville Online. (2021, December 28). https://online.maryville.edu/blog/entrepreneurship-statistics/

11. Deane, M. T. (n.d.). Top 6 reasons new businesses fail. Investopedia. https://www.investopedia.com/financial-edge/1010/top-6-reasons-new-businesses-fail.aspx

12. Facts & Data on Small Business and Entrepreneurship. Small Business & Entrepreneurship Council. (2022, May 7). https://sbecouncil.org/about-us/facts-and-data/

13. McKenzie, S. (2023, May 4). What does entrepreneurship do for job creation?. Economic Impact Catalyst. https://economicimpactcatalyst.com/entrepreneurship-job-creation/

14. Kritikos, A. S. (2014, May 1). Entrepreneurs and their impact on jobs and economic growth. IZA World of Labor. https://wol.iza.org/articles/entrepreneurs-and-their-impact-on-jobs-and-economic-growth/long

15. Munyo, I., & Veiga, L. (2022). Entrepreneurship and Economic Growth. Journal of the Knowledge Economy, 1-18. https://doi.org/10.1007/s13132-022-01032-8

16. Kindlon A; National Center for Science and Engineering Statistics (NCSES). 2022. Innovation Data from the 2020 Annual Business Survey. NSF 23-310. Alexandria, VA: National Science Foundation. Available at https://ncses.nsf.gov/pubs/nsf23310

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entrepreneurship in stimulating economic growth in developed and developing countries,
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18. Nawaz, H. R. (1673, December 25). The importance of social entrepreneurship in 2023. LinkedIn. https://www.linkedin.com/pulse/importance-social-entrepreneurship-2023-hamid-rab-nawaz/

19. Lakhotia, S. (n.d.). The gig economy: Fueling a new era of entrepreneurship. LinkedIn. https://www.linkedin.com/pulse/gig-economy-fueling-new-era-entrepreneurship-sanjay-lakhotia/

20. Thakur, N. (n.d.). The Importance of Tech in Modern Entrepreneurship. LinkedIn. https://www.linkedin.com/pulse/importance-tech-modern-entrepreneurship-nisha-thakur/

21. team, Aic. (2023, February 1). The impact of globalization on Entrepreneurship. https://aicontentfy.com/en/blog/impact-of-globalization-on-entrepreneurship

22. Lookforzebras. (2023, October 5). Entrepreneurial Opportunities in Healthcare: #1 Guide to start your health startup – look for Zebras. Look for Zebras – The guide to a fulfilling life for physicians and medical professionals. https://lookforzebras.com/entrepreneurial-opportunities-in-healthcare/

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