LAWTON, Okla. (KSWO) – May 10th is National Small Business Day, a day to highlight and celebrate small businesses across the country for their impact on local economies. However, these businesses face unique challenges.
According to the U.S. Small Business Administration, 99.9% of businesses in the United States are small businesses, and approximately 33.2 million of them operate within counties.
Approximately 43.2% of these businesses are women-owned small businesses, and approximately 61 million Americans are employed by small businesses.
small businesses in oklahoma
According to Oklahoma’s 2023 Small Business Profile, there are a total of 371,640 small businesses in Oklahoma, which encompasses 99.4% of businesses in Oklahoma. The construction industry included the largest number of small businesses in the Sooner State. There were a total of 49,140 small businesses in this industry.
Women made up 46.3% of small business employees and 43.2% of small business owners in the state.
In terms of employment, small businesses in the state collectively employ 717,434 people, representing 51% of Oklahoma’s workforce.
The health care and social assistance industry has the largest number of small business employees in the state, with a total of 115,741 employees.
Difficulties faced by small businesses
Small businesses face many unique challenges in their day-to-day transactions.
According to the National Association of Women Business Owners, one of the biggest concerns for small business owners right now is inflation. Compared to the previous year, 74% of small businesses say prices have increased, and 52% say inflation is their biggest concern. This is a 22% increase from 2021.
These concerns are exacerbated by a perceived tough labor market.
Of the 4.4 million businesses started each year, about half fail by the fifth year. Approximately 65% of small businesses go bankrupt by their 10th year.
Even before starting and running a small business, there are challenges.
Although it varies by state, the average cost to start a small business in the United States is approximately $30,000. This directs people to financial institutions to acquire their needs to start a business. However, rising interest rates can prevent people from achieving their business goals.
To make matters worse, the approval rate for SBA loans is only 25% for large banks, compared to 49% for small banks.
For women, this statistic is even more stark.
A recent study found that female small business owners take out fewer loans than their male counterparts. In 2020, women-owned businesses received an average loan amount of $49,712, compared to $83,198 for male-owned businesses.
7News asked people on Facebook what their favorite small businesses are in the area. That post is below, and if you click on it, you can also comment on your favorite small business.
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