Startup and Small

Business Statistics

in California

A small business is an independent enterprise that has less than 500

employees. In the US, there are more than 28 million small businesses and

22 million non-employers or those who are self-employed with no additional

payroll. Small businesses account for more than 64% (or 11.8 million) of the

new jobs created from 1993 to 2011. Nearly 50% of the population works in a

small business.

Statistics show that the number of small businesses has increased immensely

that many experts consider them the leading driving force of the US

economy.

The Growth of Businesses in

California

The Startup Outlook 2013 Report

by the Silicon Valley Bank

revealed that Northern California

remains the most active region

for startup businesses

(39%)followed by Massachusetts

(11%). Other states like New

York, New Jersey, Utah, Florida,

Minnesota, and Connecticut only

have 2% or more.

Another statistical ranking of the states

and districts in the US noted that

California ranked in the top 10 for

innovation. It also ranked third for

having the highest entrepreneurial

activity in 2011. One of the factors that

made them rank is because they are

home to the world’s largest high-tech

corporations—Silicon Valley, the

southern portion of the San Francisco

Bay Area.

The Risk of Business Failure in

California

An article by CNN reports that California

is a not-so-golden state for small

business success. Its failure rate is 69%

higher than the national average, which

is the worst of all states in the US. This is

due to the after effects of recession in

the real estate market. The housing

market collapsed and small businesses

were the most affected. Other states like

Nevada (65%), New Hampshire (38%),

Tennessee (36%), and Colorado (33%)

followed the list.

Experts say that this should not stop aspiring entrepreneurs. While the numbers

suggest that failure is also in California, it is avoidable by hiring the right

people. These include business mentors and financial consultants.

Startup and small businesses make up a big percentage of the US enterprise.

For those who are planning to start their business, it is important to understand

what factors can help them avoid failure.

Sources:

https://www.sba.gov/sites/default/files/FAQ_Sept_2012.pdf

http://www.forbes.com/sites/jasonnazar/2013/09/09/16-surprising-statistics-

about-small-businesses/

http://gsvlabs.com/innovation-labs/startup-investors/