20 Oct Who Are America’s Business Owners?
The depth and diversity of the U.S. economy is represented in its business owners, a group of people at the center of political debate and the core of society. But like the companies they built and the people they serve, the profile of America’s business owners are changing faster than ever. That means they can’t continue to operate under the same assumptions that may have worked just 10 years ago – they need to cut through the noise and make bold decisions to shape their vision for success into reality.
As another year approaches, here is a snapshot of modern America’s business owners:
Background of America’s business owners
U.S. small-business owners are cut from a cloth that’s representative of the country’s diverse background, with some remarkably inclusive demographics to prove it. The U.S. Small Business Administration and other public agencies consider any firm with less than 500 employees to be a small business. That means more than 99 percent of all U.S. companies with paid employees are considered small businesses.
Statistics on business ownership in the U.S. also have a lot to tell us. Based on the most recent Census Bureau Survey of Business Owners:
• 45 percent of all businesses were at least 50 percent women-owned.
• 29 percent of U.S. businesses were minority-owned (a 38 percent increase from five years earlier).
• Veteran business owners accounted for more than 9 percent of U.S. firms.
• One-seventh (14.4 percent) of U.S. business owners were immigrants.
• Around one in five U.S. businesses are family-owned, with around 10 percent being equally owned by men and women.
Overcoming financial challenges
The face of the American entrepreneur is changing in step with our expansive economy, but so too are the challenges faced by America’s business owners in starting and running their firms. We can see some of these demographic patterns at play in statistics on business financing.
• While personal or family finances comprise the lion’s share of small business funding sources, the SBA found that women are half as likely as men to obtain a business loan from a traditional financial institution.
• Women are also less likely than men to seek any outside financing for their businesses, putting greater strain on their personal finances.
• Minority-owned firms rely on credit cards for business financing more than average.
With these facts in mind, it’s clear that business owners need to prioritize capital financing. When cash flow is off-balance, it might only take one tax bill, one equipment breakdown or a major sales opportunity to do lasting financial damage. But small businesses face additional hurdles in even acquiring the working capital financing they need to avoid these problems and capitalize on growth opportunities.
Fortunately, access to capital is evolving in step with the shifting concerns of American business owners. QuickBridge provides flexible options for small firms that need financial solutions, not more frustration. Get in touch to learn more about what financing opportunities are available for your business today.