Skip to Main Content

Who are the Entrepreneurs that are Starting New Businesses in America?

Posted by Brian Berg Google+

Each month in the US there are there are an average of 320 new businesses launched every month, for every 100,000 U.S. adults. That equates to 543,000 new U.S. companies every month.  New businesses have a variety of needs ranging from office equipment to phone and data service.  New business mailing lists allow marketers to reach a valuable audience with highly targeted needs.  In the quest to put market knowledge directly in the hands of marketers, this week’s BB Direct blog focuses on the demographics of new business owners.  To be able to market to your audience, you must really know your audience.

Male vs. Female – the Gender Gap:  There is a significant gender gap in entrepreneurial activity.  Male entrepreneurs outnumber females by a ratio of 2 to 1.  Why?  While half of the workforce and half of all college students are women, their ability to launch high-growth companies (with revenues above the $1M mark) is lagging badly behind. Though we should view the imbalance as a gender discrimination issue, but as a factor that is creating a major economic deficit.  Imagine this: if women-owned startups (those poised on high growth and revenue above the $1M target) were on par with men’s, this vastly unrealized resource could make a major impact on our national (and even global) economy.  We should all work together as communities and through private and public initiatives to help put this tremendous set of under-tapped resources to optimal use.

Entrepreneurs Are Young:  A high number of new entrepreneurs, nearly 30 percent, are age 20-34, accounting for 270 new companies per 100,000 U.S. adults every month.  For these young entrepreneurs, access to funding and understanding of the pros and cons of the various varieties of funding is a critical key.  Access to appropriate mentoring is essential as well.

Boomers Are Becoming New Entrepreneurs:  Also interesting is that the group with the highest index for new entrepreneurial activity is in the sector of individuals 45-54 years of age, reflecting the aging population and their increasing interest (or outright need) to become entrepreneurs.

Some feel entrepreneurship is  becoming the new “mid-life crisis” for this strong demographic who are entering the entrepreneurial workforce due to the economy, due to longer and healthier life spans, or even due to the opportunity and unfulfilled desire to become a first-time entrepreneur.

Entrepreneurs Are Ethnic:  Entrepreneurial activity among ethnic groups is gaining traction as well. 39.8 percent of the nation’s current 11.5 million entrepreneurs belong to non-Caucasian ethnicities. 22.9 percent are Latino.

Again, private and public initiatives should align to create initiatives to answer the unmet needs of prospective entrepreneurs in each of these burgeoning demographics.  The initiatives can be highly successful when they are supported by regional and local efforts to lift the economy one community at a time.

Knowledge is key to marketing success.  To learn more about new business mailing lists contact an expert member of the BB Direct Data team at (866) 501-6273.