Interesting Facts About Small Businesses In 2021
Small businesses make up the majority of the operations that exist in the United States. In fact, just under 36 million small businesses existed in 2021 meaning that small businesses accounted for just under 100% of all businesses operating that year. If you are interested in starting your own small business, you clearly are not alone. And depending on the industry you choose, the strength of your business, your plan, and many more factors, you may become very successful with your endeavor. After all, meeting financial and personal feats is usually the goal for prospective business owners.
Still, getting to that point of robust profitability and prosperity is not easy. For many small businesses staying viable is an uphill battle. And, as high as 50% or more of small businesses in the United States that open their doors, close them just one year later. If you are having trouble paying your bills and operating your business, you may be unsure what you should do to remedy your situation. The sooner you address your financial woes the better. If you have questions about business bankruptcy and how to salvage your business and/or personal financial interests, please reach out to the New York City business bankruptcy attorney at The Law Office of Harry D. Lewis today.
2021 Business Trends
Consider the following business facts for 2021:
- More than 12 million businesses are owned by women.
- Businesses that were owned by individuals in the LGBT community were about 1% of all small businesses in operation.
- Approximately 46% of those that were employed in the private sector in some capacity worked for a small business.
- The majority or 66% of businesses reported experiencing financial problems.
- Financial reasons, specifically, not having enough capital was why 32.8% of businesses shut down. Strong competition accounted for 19.6% of business closures, unsustainable growth closed 18.75% of businesses, and the inability to conjure enough interest was how 17.5% of businesses failed.
- Word-of-mouth was the most effective and widespread way to market a business’s products or services as over 81% of small business owners utilized this method most frequently.
- Only 5% of businesses had long-term success staying open for more than 30 years. Conversely, 57.8% only lasted five years at most.
- Almost 82% of business owners said their entrepreneurial motivation was to be their own boss.
- About half, or 50% of small businesses registered in the United States operate out of their home.
- By 2028 as high as 73% of small businesses are projected to operate in a remote environment.
- The majority of small and medium businesses say that they will find ways to allow permanent remote work options for current and future employees.
- Only 25% of all businesses were able to remain open and functional for at least 15 years.
Speak to a New York Business Bankruptcy Attorney Today
Establishing a new business venture and keeping it thriving is a tremendously difficult task. There are no guarantees when it comes to starting a new business and what the future holds. If things do not work out and the business loses its financial stability and viability, potentially, bankruptcy may be worth exploring.
To discuss your options for finding ways to manage your business’s financial situation, please call the New York business bankruptcy lawyer at the Law Office of Harry D. Lewis to schedule a free consultation at 212-859-5067.