Who Are Small Business Owners In America? A Snapshot

There are over 33 million small business owners across the United States. The Small Business Administration (SBA) defines this cohort as those with fewer than 500 employees.

But who exactly is a small business owner (SBO)? What’s their age and education? How many hours do they work? How much do they earn? What drives them to go to work each day?

Small business owners are the lifeblood of our economy and a pillar of their communities. So let’s take a closer look at these unsung heroes.

What’s The Average Age Of A Small Business Owner?

When you imagine the face of entrepreneurship, what do you see? Someone in their 20s, 30s, 40s, 50s, or 60s?

A whopping 51% of SBOs start when they’re 55+ years old. But that age group doesn’t account for all new small business owners.

Small business owners are diverse. The average age to start a business is 35. Here’s the breakdown:

• 6% start when they’re 34 and under
• 43% start between the ages of 35-54
• 51% start when they’re 55 and older

What does their path to entrepreneurship look like? Some skip college and launch their startup immediately. Others enter the workforce and start their venture after a layoff. And then there’s another cohort who retire from their profession and dislike retirement so much they jump into the wonderful business world.

Their age and journey may vary, but SBOs all have one thing in common—they’re ambitious trailblazers aiming to make their corner of the world a better place.

How Many Hours Do SBOs Work?

I call small business owners the unsung heroes of America for a reason. They work a lot to get things done. And even when SBOs aren’t working, they’re thinking about work.

I regularly clocked 70- to 80-hour workweeks when I started my first business. Those were long hours, yes, but that’s not abnormal. Most small business owners work beyond the standard 40-hour workweek.

So how many hours do business owners work? Consider these stats:

• 58% of SBOs work at least 50 hours per week
• Only 57% take vacations
• Of the 57% who take vacations, 67% check in to work at least once a day

This often unparalleled work ethic and sacrifice drives small businesses to employ millions of workers in the labor market.

One thing’s clear—small business owners’ intense dedication to their companies makes their businesses adaptable, successful, and an invaluable part of the economy.

How Much Do Small Business Owners Make?

Go up to any small business owner and ask them why they do what they do. I’ll bet they won’t say it’s for the money—especially during those startup years.

My first business was back in 1986. We ran out of money, maxed out our credit cards, and had to borrow. We didn’t get a real paycheck for four years!

So how much do small business owners make? Income can vary depending on industry, locality, profits, and time in business. The average income is $70,781 annually, but earnings can range from $31,000 – $150,000.

What Drives SBOs To Go To Work Each Day?

It’s not money. And it’s not short workweeks. What exactly drives small business owners to start and run a business?

I asked my social creative team to interview local business owners and discover what drives them. After all, SBOs are at the heart of everything we do at Patriot Software.

Here’s what we learned (and subsequently shared on our YouTube channel):

• They’re creative. Small business owners aren’t satisfied with the 9 to 5. They have a vision of what they want to do and will do whatever it takes to get it done.
• Community is key. SBOs love building relationships with regulars, meeting new people, and hearing others’ stories. They often donate to their communities and sponsor local events. All in all, they want to make people happy, one customer at a time.
• They’re adaptable. COVID who? Recessions where? Quiet quitting what? Small business owners navigate through everything thrown their way with resilience and adaptability.

Who Is a Small Business Owner?

Sure, size is a key indicator of what is considered a small business. But there’s so much more to this group of fearless leaders.

SBOs embody the entrepreneurial spirit. They’re as diverse and spirited as the ventures they create.

They are the backbone of our economy, working long hours to get the job done and creating millions of jobs in the process.

Thank you, small business owners. What would we do without you?