Business Statistics

in US:

  • The 5 most profitable small business industries by net profit margin (NPM) are (Mansfield 2019:
    1. Accounting, Tax preparation, Bookkeeping, and Payroll Services: 18.4 percent NPM
    2. Lessors of Real Estate: 17.9 percent NPM
    3. Legal Services: 17.4 percent NPM
    4. Management of Companies and Enterprises: 16 percent NPM
    5. Activities Related to Real Estate: 14.9 percent NPM

  • Successful entrepreneurs are middle-aged, not young. There's no evidence to suggest that founders in their 20s are especially likely to succeed. The mean founder age for the 1 in 1,000 highest growth new ventures is 45.0 (Azoulay et al. 2018:

  • Prior experience in the specific industry predicts much greater rates of entrepreneurial success. Prior employment in the specific sector predicts a vastly higher probability of an upper-tail growth outcome or successful exit, with success rates rising up to 125%. The closer the industry match, the greater the success rate (Azoulay et al. 2018:
    • Empirical studies have found that human capital, including the acquisition of relevant market and technical knowledge, can predict entrepreneurial success.
    • Owner's prior experience at starting a business increases the longevity of the next business opened even after controlling for person fixed effects.
    • Ventures started by former employees of incumbent firms perform better than other new entrants, an advantage that appears related to industry-specific market knowledge.
    • Findings indicate that founders with both closer and longer experience in the industry of the start-up see substantially greater success rates. These findings reject the idea that coming from outside a sector predicts outsized entrepreneurial success.
    • These findings are consistent with theories in which key entrepreneurial resources (such as human capital, financial capital, and social capital) accumulate with age.

in Switzerland:


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