Small Business Owner | Average age, salary, more

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

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

An uncle 51% of SBOs they start when they are over 55 years old. But this age group does not include all new small business owners.

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

• 6% start when they are 34 years old or younger
• 43% start between the ages of 35-54
• 51% start when they are 55 or older

What does their path to entrepreneurship look like? Some skip college and immediately launch their startup. Others enter the workforce and start their own business after a layoff. And then there is another one group who retire from their profession and don’t like retirement so much that they jump into the wonderful world of business.

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

How many hours do SBOs work?

I call small business owners America’s unsung heroes for a reason. They work LOT to finish things. And even when SBOs aren’t working, they’re thinking about work.

I regularly put in 70-80 hour work weeks 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 work week.

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

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

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

One thing is 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 earn?

Go to any small business owner and ask them why they do what they do. I bet they won’t say it’s about the money – especially during those early years.

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

So how much do small business owners earn? Income may vary depending on industry, location, profits and time in business. The median income is $70,781 per year, but income can range from $31,000 to $150,000.

What drives SBOs to go to work every day?

It’s not money. And they are not short work weeks. What JUST drives small business owners to start and run a business?

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

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

• They are creative. Small business owners aren’t content with a 9 to 5. They have a vision of what they want to do and will do whatever it takes to make it happen.
• Community is key. SBOs enjoy building relationships with regulars, meeting new people, and hearing other people’s stories. They often donate to their communities and sponsor local events. Overall, they want to make people happy, one customer at a time.
• They are adaptable. WHO covid? Recessions where? Giving up what? Small business owners navigate whatever comes their way with resilience and adaptability.

Who is a small business owner?

Of course, size is a key indicator of what is considered a small business. But there is much more to this group of fearless leaders.

SBOs embody the entrepreneurial spirit. They are as diverse and vibrant 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?