Shocking Startup Statistics


Successful small businesses are at the core of a flourishing economy. For example, America, the world’s largest economy, has plenty of startups that achieve and maintain success throughout their years of operation. Although that’s true, there are even more small businesses that fail before they get anywhere. In fact, only 4% of startups survive to the 2nd year of business. That’s just one of the many daunting statistics waiting to be read by aspiring entrepreneurs. It’s important for entrepreneurs to possess realistic expectations when starting a business and the risk attached to such an endeavor. We’ve compiled five shocking statistics for entrepreneurs to internalize before creating their startup.

Statistics Infographic


This post should begin and end where many startups do; funding. You’ll be surprised to know that 82% of startup funds come from the entrepreneur themselves. This statistic displays the shoe-string budget an innumerable amount of businesses find themselves operating off of. However, there’s still a large chunk of money (18%) that isn’t coming from the business owner. These funds could be ascertained through a variety of methods such as friends, investors, or kick starting campaigns. All of the funding avenues that were just mentioned didn’t include the word ‘loan.’ If you think that the ideal source of money for a startup is a loan, then you lack the ingenuity needed to run a business. Successful startups require creativity, and that takes a strong imagination with original ideas; where those ideas come from is somewhere no one expected.

Startup Origins

The majority of startups begin at the home of the entrepreneur. This is a phenomenon which goes to support people who claim that passion beats funding as entrepreneurs will always pursue their dreams. In fact, exactly 69% of startups originate from home; that’s a staggering majority. It’s incredible to think that some of the largest corporations on the planet started within a home. Who would’ve thought that you could become a billionaire while lying in bed? However, it’s not like these business owners didn’t put in any effort. For example, Apple was once on the verge of collapse, but Steve Jobs decided to persevere and that led him to being the founder of the most valuable company in the world. If you’re wondering how business owners such as Steve Jobs learn to be successful, then the answer will certainly surprise you.


There is no definite answer. Some entrepreneurs learn on their own such as Elon Musk while others take classes. A survey was conducted in order to determine what the general populace thought the best way to learn more about entrepreneurship was and the results shouldn’t be shocking. 51% of those surveyed said that the best way to learn more about entrepreneurship was by becoming a business owner. Nowadays, we see people attending entrepreneurship classes and hoping that they’ll learn everything they need in order to be successful. However, once you create a startup, there’s no knowing what will happen. Your business could fail or eventually become a multi-million-dollar business. Basically, studying is important, but nothing can truly prepare you for operating a business than actually doing so. So, what’s the best industry a curious entrepreneur can go into?

Passion & Profitability 

Entrepreneurs are diving into emerging markets in an attempt to form a lucrative business even though it may not be the most profitable idea. Statistics show that the most profitable startup option available to entrepreneurs is the accounting/tax preparation industry. This may come as a surprise since you never hear about accounting startups in the first place. However, it’s a rapidly growing industry that has proven to yield results for daring entrepreneurs. Does that mean your only choice for a successful startup is an accounting business? The obvious answer is no. You’re better off pursuing your passion as you’ll have a more tenacious attitude with something you love. Now that we’ve discussed the origins of startups, let’s talk about how many of those businesses are profitable.

Making Ends Meet

As stated before, this post will begin and end where many startups do; funding. The majority of startups lack a stable flow of cash for their business. Since this is the case, only 40% of businesses are profitable while 30% are stagnant and the other 30% are in a perpetual state of loss. Doesn’t sound too motivational does it? It’s important to emphasize the fact that many new business owners aren’t well-prepared for what’s to come. As an entrepreneur, you should take every possible measure in order to ensure that your startup can smoothly grow as time progresses. You’ll inevitably face issues and overcoming them may take a lot of time and money, but it’ll all be worth it once your business is profitable.


The aforementioned statistics display a stark, yet hopeful reality for startups within America. Many new business owners don’t prepare themselves by studying what their startup will need in its early phases. One asset your business definitely needs is a website and that website needs good content. Cosmometier is an online writing service that has worked with hundreds of clients from around the world. It’s easy enough to put two and two together and realize that professionally written content is something your startup sorely needs. Visit our store and purchase one of our 12 services for premier content that speaks for itself. To conclude, entrepreneurs should prepare themselves prior to creating their startup for optimal results.


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