17 Incredible Statistics That Prove Entrepreneurship Is Here to Stay Despite The COVID-19 Crisis

By Bill Acholla April 21, 2020

As an entrepreneur myself, the current pandemic caused by COVID-19 had me worried.

The effects of the pandemic can be felt in every aspect of our lives. From health to business, nothing is left from its grip.

As you may already know the pandemic is affecting the business sector heavily. It has led to the shutdown of businesses all over the world. Not just that but it has also crashed the global stock market.

For entrepreneurs and businesses, time is going tough. But if you have the right entrepreneurial spirit, you can last even during this crisis.

Let me explain to you how entrepreneurial spirit matters and how it will help businesses to survive.

I will also discuss the statistics that prove entrepreneurship is here to stay despite the COVID-19 crisis.

What is an Entrepreneurial Spirit?

First, I would like to explain what entrepreneurial spirit is.

The entrepreneurial spirit is the mindset you have as an entrepreneur. It can be better described as an attitude or approach towards your business.

It helps you to seek the change, instead of waiting to adapt to the change. It’s a mind-set that encourage you to question, improve and get innovative.

 An entrepreneurial spirit is a way of approaching situations that makes you feel motivated and empowered. It means taking things in your own hands for the betterment of your organisation.

Companies that nurture the entrepreneurial spirit, encourage their employees to find solutions to their problems, seek opportunities and also to come up with their ideas.

It helps the companies to evolve and grow.

The entrepreneurial spirit is a kind of special gift that not only helps to bring out the best in you but also inspires others to give their best.

It’s full of passion, ambition, and positivity.

Why is Entrepreneurial Spirit Important?

According to me, to keep a business running and take it to heights of success, having the entrepreneurial spirit is a must.

Practicing entrepreneurial spirit means you want more than just starting or running your business. It’s like that extra factor that you need to do great things.

 The entrepreneurial spirit is important because it holds passion, creativity, and innovation. It helps you to think beyond profit-making.

If you have these traits in you, then you have the potential to be a successful entrepreneur in life.

These are the characteristics you need to achieve greater things for your businesses and take your career to the next level.

In this situation, where businesses are hit hard by the pandemic, it’s your entrepreneurial spirit that will help you keep your business alive.

You need to think of ways that can help you cope with the current situation. Failing to do so, will wipe out your business completely.

The entrepreneurial spirit is not something that can be learned. It has to be there within you.

Entrepreneurial Spirit Statistics To Talk About

So without further ado, let’s see the stats!

01. GEM is a global consortium consisting of more than 500 researchers. It’s the world’s largest research program available on strategic entrepreneurship that includes data from over 100 economies. 

GEM studies the behaviour of individuals who wants to start a business. According to them 27 million working-age Americans–nearly 14 percent–are starting or running new businesses (Babson)

02. Almost 60% of small business owners launch with less than $25,000. According to the latest data from the U.S. Census Bureau, the median cost to start a business is about $25,000. 

However, they did find businesses that begin with less than $25,000. But $25,000 is still a risky amount to launch with (CNBC)

03. People over 35 are more likely to start a business—and much more likely to succeed at it.

People over 35 are more experienced and therefore, they get a successful shot at the business.

However, this is not always the case. You need to have the right attitude to become a successful entrepreneur (WSJ)

04. 66 percent of Entrepreneurs prioritize the success of their start-up over earning big salaries 

Establishing a business is not easy and especially surviving the first year of the business.

Once they cross that first-year mark, they cherish it because they know their business will stay (The Next Web)

0.5 There are more than 582 million people in this world in the process of starting or running their own business 

This number is provided by the latest Global Entrepreneurship Monitor that surveyed 65 economies worldwide. 

There are different fundamental elements like education, communication, transportation, stable economies, and others that are important for a society to function properly. 

They also affect the business community in the financial markets and markets for goods and services (The Hill)

06. More Than 31 Million People in America believe entrepreneurship is a good career 

Due to the favourable environment in the US, most people think that starting a business is a good idea in the US.

They have resources, favourable attitude and everything else that is required to establish a business (Babson)

07. 69 percent of U.S. entrepreneurs start their businesses at home. Home start-ups are the most profitable as it doesn’t require enough investments.

This is why the majority of people choose to start their business from home.

This includes:

…etc (Small Biz Trends)

08. 33% of small business owners feel confident about their future.

Small business owners feel confident about their business because they know they can support their business even with limited resources (NSBA)

09. 40 percent of small businesses are profitable. Small businesses are more profitable to run because they require fewer resources and investment.

You can run your business with limited investment and reap profits out of it (Small Biz Trends)

10. Having two founders, rather than one, significantly increases your odds of success.

Establishing a business in partnership is always more profitable as it increases the chances of your business to survive.

Instead of one, the business is supported by two people and their resources (Inc)

11. The 10 most profitable small business industries by net profit margin.

Most profitable industries sell services instead of products. This means that their operations don’t require capital investments in raw materials.

This is good news for the entrepreneur who can’t afford to invest millions in a start-up (Inc)

12. Nearly 80% of small businesses survive their first year. A business is met with many challenges in the first year of its business.

Once you overcome this, your business has a good chance of survival.

But according to statistics, around 80% of small businesses end up dead in the first year.

This happens mostly due to the lack of funds to support their business (SBA)

12. Roughly 21.9% of small firms have used personal and family savings to finance their business 

Around 21.9% of people have used their savings or family wealth to finance their business.

Usually, people take loans from banks to establish a business. But some people had sufficient funds to finance their own business. However, these mostly include small business owners (SBA)

13. Most entrepreneurs don’t have a college degree. A college degree is always not important to become a successful entrepreneur.

You need to have practical skills and knowledge to be a rich and successful business owner.

You should know what is good or bad for your business. Most importantly, you should be able to predict and take the right decisions (CNBC)

14. 62% of U.S. millionaires are self-made. According to Wealth-X data, there are about 585 US billionaires.

The majority of them, which is around 62% have created their fortunes themselves. This includes both men and women.

The data also includes that there are people from different age groups who have got successful (Wealth X)

15. 53% of small business owners ranked their happiness at 9 in their roles of owning a business.

Guidant Financial is the founder of Small Business Trends Alliance, a group of companies that is developed to help small businesses with insights and data trends. 

The SBTA reports help small businesses to grow their businesses. It also promotes transparency by providing them the information they need to be successful (Guidant Financial)

16. America offers the best environment to cultivate entrepreneurs. Entrepreneurs need a suitable environment to flourish. This may differ from country to country.

They need proper resources and infrastructure to grow and expand. Certainly, America provides a suitable ecosystem for entrepreneurs.

The growth of the country is dependent on its business. More business means more economic growth (The Gedi)

17. Successful small businesses are built over years, not months. No matter what business it is, it takes time to establish it. You cannot create a business in just a day or two.

It takes years for a business to get established and get recognition in the market. This applies to both small and big businesses.

Even businesses like Walmart had a slow start in the beginning. But today, we all know where they stand.

Well, now you know why and how the entrepreneurial spirit is important for the survival of your business (Forbes)

Conclusion

That’s it for my list of entrepreneurial spirit statistics.

As an entrepreneur, I really enjoyed putting this list of stats together.

Now I’d like to hear your thoughts:

Which entrepreneurial spirit from this list surprised you the most?

Or maybe there’s a stat out there that I overlooked (it happens 🙂)

So go ahead and leave a comment below.

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