75% of new businesses survive the first year, 69% survive the first two years, and 50% make it to five years. 

Source: U.S. Bureau of Labor

Entrepreneurship is a never-ending journey and requires dedication and continuous maintenance. The reality is that there will always be ups and downs – but the efforts you have put into your business will make the difference in days to come. Have in mind that entrepreneurship is not a sprint – it is a marathon. And to win in the long run, you need a strategy. 

Every successful entrepreneur strategy starts with extensive research on industry needs, market fit, new technologies, and marketing solutions. 

And the best way to begin is to have insight into statistics and reliable facts – to keep up with the emerging entrepreneurship trends. 

“Innovation needs to be part of your culture. Customers are transforming faster than we are, and if we don’t catch up, we’re in trouble.” 

– Ian Schafer CEO, Kindred

Technology is evolving on a daily basis, and the market is more demanding than ever – the result of that is a constant change in the business landscape. And to establish a successful business, entrepreneurs lean toward innovative products, services, and brands. 

The thing is that innovation is a risk – and to avoid unnecessary issues, we will focus on the early-stage traps that negatively affect entrepreneurship business performance. 

Entrepreneurs traps

Now, we will dive into the main pitfalls where most of the entrepreneurs fail:

  • The short-term strategy is the main pitfall for any entrepreneur. Having an idea is just a start. There must be a clear vision and an elaborate plan where you are going and what is your primary goal in the long run. 
  • Premature growth can be dangerous if you don’t have resources to catch up with the incoming workload. Before you grow, estimate if there is space for a company to expand and scale your limitations. 
  • Poor team collaboration is challenging to prevent. You can easily overestimate people just because of their excellent credentials and hire experts but, in general, creating a team of people who are not a good fit. Therefore, focus on team collaboration and trustworthiness – instead of individual performance. 
  • Unequal resource distribution leads to unstable business. To obtain a stable workflow, you must create a precise estimation of your company limits with a focus on the funds, human resources, and your own limitations. Resource distribution is a dynamic process and requires it to be maintained toward a sustainable business model. 

These entrepreneurship tips are just one aspect of the survival and longevity of the company. Once there is a clear business strategy and functional plan – the next step is the execution of tasks. Successful entrepreneurs rely on a set of beneficial tools and effective systems. 

The most significant impact on the sustainability of entrepreneurship business is innovative and highly reliable productivity management software designed to boost employee collaboration and team productivity. 

Utilizing hi-tech software tools can significantly improve workflow, automatizing organizational processes, and creating an overall progress view. But to precisely set up a successful business – and start initiating, planning, monitoring, and execution, you need reliable analytic and data. 

“Without data, you’re just another person with an opinion.” 

– W. Edwards Deming

We classified by category a shortlist of 25 the most valuable statistics that will significantly enhance your knowledge about entrepreneurship in 2020. 

Business Challenges and Entrepreneurship 

What challenges did people experience as entrepreneurs – what are pain points, and what is the main reason for an entrepreneurship business to fail? 

These facts can be incredibly valuable for small company owners pursuing business survival. 

#1

22% of small business owners consider a lack of time and resources as their most dangerous challenge today. 

Source: Keap

#2

53% of small-business owners in 2020 believe that there’s an impending recession.

Source: CNBC/SurveyMonkey

#3

60% of small companies are victims of cybercrimes every six months.

Source: Cyber Security Ventures

#4

The number-one reason for failure, cited by 42% of startups, is the lack of a market need for their product.

Source: CB Insights

#5

Other reasons why businesses fail include bankruptcy (29%), absence of a team for the business (23%), and companies were outcompeted (19%).

Source: CB Insights

Business Success and Entrepreneurship 

What strategy did successful business owners implement in order to achieve a sustainable company, and what industries and niches are more likely to grow revenue? 

These facts are valuable for people who are thinking of investing in their own business. 

#6

Entrepreneurs who have successfully started a business tend to have a 30% success rate in their next ventures.

Source: Inc

#7

Small business owners who initially failed with a previous business have a 20% chance of success in their next try versus an 18% success rate for first-timers.

Source: Inc

#8

33% of entrepreneurs have finished high school/GED. Others have associate degrees (18%), bachelor’s degrees (29%), master’s degrees (16%), and doctorates (4%). 

Source: Guidant Financial

#9

The healthcare and social assistance industries are predicted to grow by 21% from 2014–2024, the fastest job growth rate in any US industry. 

Source: US BLS

#10

Healthcare and social assistance businesses tend to have the highest survival rates among all industries for the 2014–2024 period.

Source: US BLS

Entrepreneurship Employee Market 

What obstacles did entrepreneurs encounter hiring new employees and creating team collaboration?

These facts are valuable for entrepreneurs who want to invest in human resources and establish a healthy and productive work environment. 

#11

99.9% of America’s 30.2 million firms are small businesses. 

Source: US Bureau of Labor Statistics

#12

Micro-business firms with under ten workers 

contribute up to 75.3 percent of all private-sector businesses.

Source: US SBA

#13 

75.3% of small businesses are with 20 people or less.

Source: US Census Bureau

#14 

Most small business employees stay with their employers for four years or more. 37% remain on average, eight years, or longer.

Source: NSBA

#15 

Between 2018 and 2028, the skills gap may leave an estimated 2.4 million positions unfilled.

Source: Deloitte

Small Business and Entrepreneurship

What is the motivation to open your own business, how much money do you need for a start, and what industry or niche is the most profitable?

These facts are valuable for people who have doubts if starting your own business is the right choice.

#16

The top motivation for someone to open their own business is that they’re ready to become their own boss.

Source: Guidant Financial

#17

The best industries to start a business in 2020 are technology, health, energy, media, and consumer retail.

Source: Inc

#18 

69% of American entrepreneurs start their business at home. 

Source: Small Business Trends

#19

In their role as an entrepreneur, 53% of small business owners ranked their happiness at nine or more.

Source: Guidant Financial

#20 

58% of entrepreneurs started with a minimum of $25,000, and 82% of startup funds come from the entrepreneur, or their family and friends.

Source: Small Business Trends

Digital Marketing and Entrepreneurship 

What is the best way to advertise your business, and what channels of communication convert most of the customers?

These facts are valuable for people who want to know what digital channels are entrepreneurs using in their marketing campaigns. 

#21

83% of entrepreneurs with a website feel a competitive advantage compared to those without one. 

Source: GoDaddy

#22

49% of small business entrepreneurs consider social media management as their primary marketing tool.

Source: Keap

#23

89% of entrepreneurs think that the most powerful digital marketing technique is Search Engine Optimization – SEO. 

Source: Iron Paper

#24 

61% of small businesses spend their marketing budget only on social media marketing campaigns. 

Source: Clutch

#25 

29% of small business entrepreneurs don’t intend to use any form of digital marketing in 2020.

Source: Keap

To sum up

Starting your own business is just half of the work – the other half is how to survive. These statistics will help you to have a broader angle on entrepreneurship as a phenomenon of the modern business landscape. 

But keep in mind one thing – these numbers and trends are not constant but variable. They are here to remind us that before every decision, there must be research and extensive data analytics – to encourage us to see interrelations inside of global business trends. In the future, technology will have an enormous impact on the SaaS companies, especially the SaaS industry and cloud computing – which have already changed the main business principles, focusing on remote collaboration and artificial intelligence automatizing organizational processes. 

The future is here – and it is on us to start with the idea!

But sometimes it will take a lot of time to shape your initial idea, to find the right niche, marketing strategy, placement, and the right conditions for it to grow. 

As we said, entrepreneurship is a marathon – the long run. 

“Tough times never last, but tough people do.”

-Robert Schuller

So take your time wisely – and pay attention to every detail on your entrepreneurship road to success. 

What is your experience when it comes to sustaining your own business?

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