Main Street Monday — New Main Street Small Businesses will Survive 5 Years
Main Street Monday — New Main Street Small Businesses will Survive 5 Years
By Bob Coleman
Editor, Main Street Monday
You know I love small business stats. Stats help small business lending professionals put everything into context.
Here are some key one’s from the 2016 Kauffman Index of Main Street Entrepreneurship.
- 49% new small businesses are making it to their fifth year of operation — compared to 43% during the Great Recession.
- 6% of the population is a small business owner.
- Small business account for 676 per 1,000 businesses.
- Companies with one to four employees make up 53% percent of all established small businesses.
“The Main Street Entrepreneurship Index provides additional evidence that U.S. small business activity has rebounded from the downturn and continues to gather strength,” says Arnobio Morelix, senior research analyst.
“More new businesses are making it through their first five years of operation. While this could indicate that a lack of dynamism is allowing less-productive firms to hang on longer, overall the entrepreneurial increases bode well for the established, small businesses that underpin much of our economy.”
For the first time since the recovery got underway, Main Street entrepreneurship activity is at higher levels than those recorded before the onset of the Great Recession.