The number of small businesses in the United States continues to climb, according to a recent CB Insights report. In 2015, there were approximately 31.9 million small businesses in the United States. There are now an estimated 39.9 million small businesses, with a projected 2.6 million additional firms expected by 2020. Defined as firms with 0-49 employees, small businesses are active in a wide variety of industries with healthcare, hospitality/food services and retail trade as the top three sectors.
While U.S. small business growth is promising, many small businesses face difficulties accessing capital. According to a Federal Reserve survey cited in the report, 44% of employer firms noted credit availability or securing funds for expansion was a major challenge. Accessibility to funding, however, seems not to have slowed the growth in the fintech sector.
Fintech startups have raised over $10 billion in funding since 2013. Small business payments companies have raised approximately $3.9 billion in funding since 2013. Accounting/tax and fundraising fintech small businesses follow with $2.1 billion and $1.7 billion of funding secured, respectively, since 2013.
For additional trends affecting small business and fintech, see CB Insights’ report: https://www.cbinsights.com/reports/CB-Insights_The-US-Small-Business-Fintech-Report.pdf