How Much Do Small Business Owners Make in 2024 – Exclusive Insights

Embarking on the entrepreneurial journey is like setting sail into a vast sea of possibilities—both thrilling and daunting in its expanse.

As you stand on the precipice of launching your venture or navigating the early stages of your business, you’re not just a dreamer reaching for the stars; you’re a pioneer charting a course through the unpredictable tides of the market.

The question that echoes in many in your shoes is pragmatic: “What can I realistically expect to earn from my endeavors?”

It’s a question that carries the weight of mortgage payments, grocery bills, and the humble luxuries of life.

In the quest for financial independence and the fulfillment of being your own boss, understanding the landscape of small business earnings is not just about numbers—it’s about shaping the expectations and business strategies that will define your journey.

In this blog post, we’ll dive into the actual earnings of small business owners in 2024, exploring averages and small business statistics and the personal stories of five entrepreneurs whose experiences illuminate the path ahead.

How Much Do Small Business Owners Make in 2024?

The income of small business owners can vary widely based on numerous factors, including the industry, location, the size of the business, and whether the company has employees.

Here’s a compilation of average income data for small business owners in 2024 from multiple sources:

According to data from Payscale, on the lower end, small business owners can earn an average salary of around $29,000, which can go up to $128,000 on the higher end.

The Kickass Entrepreneur suggests that considering many small businesses do not have employees, the average owner with $44,000 in revenues makes slightly over $3,000 a year, pointing to the significant impact of operating expenses on net income.

The Motley Fool reports that the income for average business owners nationally is a little less than $61,000, but it also varies by location.

Small Business Trends highlights that the average annual salary for small business owners is $69,441, with the potential for additional income through bonuses, profit sharing, and commissions.

Findstack mentions an average income of $64,709 for small business owners, per Payscale data.

According to Payscale, NorthOne states that the average small business owner’s salary is nearly $69,000.

Review42 reports an average annual income of around $65,000 for small business owners, with entry-level owners earning about $58,374.

Hostinger provides a range, stating that the average annual income is around $69,000, with a salary range between $30,000 to $134,000, depending on the level of experience.

According to Payscale, the average salary for a Small Business Owner is $68,692 in 2024, with a total pay range from $31,000 to $159,000 when including bonuses and profit sharing.

Fundera adds that small businesses with no employees have an average annual revenue of $46,978, with the average small business owner making $71,813 a year.

These figures provide a general idea of what small business owners might make, but it’s crucial to consider that these are averages, and actual incomes can differ significantly.

5 Stories from Small Business Owners

Please note that the five stories and individuals presented for our five entrepreneurs are based on 2023 data from Sunwise Capital.

It provides a snapshot of potential earnings. Actual incomes can vary widely even within the same field, and numerous factors—such as geographic location, business acumen, market trends, and individual circumstances—will influence the success and earnings of any business venture.

These stories should serve as a general guide rather than a definitive forecast for any individual’s entrepreneurial journey. 

Emily, Boutique Owner

Location: Austin, Texas

Industry: Retail

Annual Revenue: $130,000

Personal Salary: $68,000

Experience: 5 years

Employees: 2 part-time

Emily opened her boutique in a trendy Austin neighborhood. After costs, her take-home pay is around the average for small business owners. She supplements her income with a small online store, which has helped her reach the upper range of small business earnings. Emily’s boutique is a hit with locals, and she’s considering expanding her brand online.

Raj, IT Consultant

Location: San Francisco, California

Industry: Technology Services

Annual Revenue: $200,000

Personal Salary: $128,000

Experience: 10 years

Employees: None (freelancer)

As an IT consultant in Silicon Valley, Raj works from home and has no employees, which keeps his overhead low. His revenue places him at the higher end of small business earnings. Raj’s success is due to his expertise and the high demand for tech services in his region.

Sofia, Coffee Shop Proprietor

Location: Miami, Florida

Industry: Food Service

Annual Revenue: $90,000

Personal Salary: $30,000

Experience: 2 years

Employees: 5 part-time

Sofia’s coffee shop quickly became a neighborhood staple, but her profits are modest after expenses and employee wages. She’s in the lower range of small business owner salaries but hopes to increase her income by adding local delivery services.

Liam, Specialty Food Store Owner

Location: Seattle, Washington

Industry: Specialty Foods

Annual Revenue: $46,978

Personal Salary: $3,000

Experience: 1 year

Employees: None

Liam started an online store selling specialty food products. The business is in its early stages, and its net income is low after all expenses. However, Liam is optimistic as his unique product line is gaining popularity, and he expects his income to grow substantially as the business scales.

Grace, Marketing Consultant

Location: New York City, New York

Industry: Marketing and Advertising

Annual Revenue: $150,000

Personal Salary: $71,813

Experience: 8 years

Employees: 1 full-time, 2 contractors

Grace has a small marketing firm with a few employees. She earns a bit more than the average small business owner, which reflects her experience and the high cost of living in NYC. Grace’s firm has a solid client base, and she’s considering expanding her services to keep up with demand.

These stories reflect the diversity of small business owners’ financial situations and highlight how location, industry, business stage, and structure can impact earnings.

Definition of a Small Business Owner

A small business owner is a person who manages a company with fewer resources than larger organizations, usually with fewer employees and a smaller clientele.

Small business owners require a diverse skill set, as they often wear many hats and assume various responsibilities to keep their businesses running smoothly.

From managing day-to-day operations to overseeing finances and marketing efforts, small business owners face unique challenges and opportunities in their pursuit of success.

We will examine the small business owner, the characteristics that differentiate them from larger enterprises, and the importance of their contribution to the economy.

What to Consider When Evaluating Salaries

When evaluating salaries, several factors should be considered to ensure fair compensation.

Firstly, job market trends are crucial in determining the appropriate small business owner salary range.

It’s important to assess the demand and supply for specific job roles and any recent changes in the industry.

Understanding job market trends allows employers and employees to gauge the market value of a particular role.

Cost of living is another key factor to consider when evaluating salaries. Different locations have varying living expenses, such as housing, transportation, and healthcare costs.

Adjusting wages according to the cost of living in a particular area enables employees to maintain a suitable standard of living.

Owners should also consider industry standards. Researching what other companies in the same industry pay for similar roles provides a benchmark for salary negotiations.

It ensures that salaries offered are competitive and in line with industry norms.

Experience level is an important aspect in determining salaries. Employees with more experience typically expect higher compensation, as their expertise and skills have a higher market value.

Proven experience and track record should be rewarded with appropriate salary increases.

Lastly, job responsibilities should be considered. The more complex and challenging the role, the higher the salary should be.

Additional duties or specialized skills often warrant a higher compensation package.

TIP: when evaluating salaries, it’s essential to consider job market trends, cost of living, industry standards, experience level, and job responsibilities. By considering these factors, employers and employees can ensure fair and competitive compensation packages.

Average Salaries of Small Business Owners in 2024

In 2024, the average salaries of small business owners are a topic of interest and speculation.

Small business owners play a crucial role in the economy, and their salaries significantly impact their financial stability and the success rates of their ventures.

As we delve into this subject, it is important to consider the various factors that influence an entrepreneur’s earning potential, such as their industry, business size, and geographic location.

Understanding the current trends and projected average salaries of small business owners in 2024 can provide valuable insights for aspiring entrepreneurs and those looking to support and work with these individuals.

Let us now explore the factors and predictions that shape the financial landscape for small business owners in the upcoming year.

Median Income for All Business Owners

Various factors, including the industry and location of the business, influence the median income for all business owners.

According to the Background Information, business owners’ income can vary significantly based on these factors.

When analyzing the median income for business owners, it is important to focus on the midpoint of their earnings.

This value eliminates outliers and provides a more accurate representation of the typical income of business owners.

The median income is also helpful in providing a better insight and understanding of the overall financial health of business owners.

Regarding industry, different sectors offer varying income opportunities. For instance, business owners in the technology sector may have a higher median income than those in the retail industry.

The demand for expertise and specialized skills in certain sectors can drive higher revenues for business owners.

Location is another crucial factor influencing the median income for business owners. Business owners in metropolitan areas or regions with a high cost of living tend to have higher median incomes than those in rural areas.

The availability of high-paying clients and a larger customer base in urban areas can contribute to increased earnings for business owners.

TIP: The median income for business owners depends on factors such as industry and location. These variables can significantly impact the earning potential of business owners, with differences observed across sectors and regions. By considering these factors, a more accurate understanding of the median income for all business owners can be gained.

Variations by Region

Culinary traditions vary significantly across regions, resulting in diverse flavors, techniques, and ingredients.

These variations are influenced by geography, climate, history, and cultural traditions.

Mediterranean regions, for example, culinary traditions are characterized by the abundant use of olive oil, fresh herbs, and seafood. Greece, Spain, and Italy cuisine often include tzatziki, paella, and pasta. These dishes represent the unique aspects of their respective regions, with distinct flavor profiles and preparation methods.

Moving towards Asia, the culinary traditions differ significantly, with each region having its unique aspects. Countries like Thailand, Vietnam, and Malaysia are known for their vibrant and aromatic dishes in Southeast Asia.

Thai cuisine, for instance, features dishes like pad Thai and green curry, while Vietnamese cuisine is famous for pho and banh mi sandwiches. In East Asia, South Korea, China, and Japan, they have their own culinary identities.

Chinese cuisine is renowned for its varied ingredients and techniques, while Japanese cuisine is known for its delicate flavors and emphasis on fresh seafood. On the other hand, Korean cuisine is characterized by its extensive use of fermented ingredients, such as kimchi.

In the Americas, culinary traditions vary from region to region. In North America, the cuisine reflects Native American, British, and French traditions. Southern cuisine, famous in the United States, features fried chicken, cornbread, and collard greens.

In Central and South America, flavors differ dramatically. Mexico, for example, is known for its use of bold spices like chili peppers and cumin, as seen in dishes like tacos and enchiladas. In Brazil, feijoada is a traditional bean stew, while Argentina is famous for its grilled meats, particularly the iconic steak.

Overall, the culinary traditions across regions reflect the unique aspects of each culture, showcasing specific dishes that have become synonymous with their respective areas.

These variations in flavors, techniques, and ingredients offer foodies an exciting journey through the rich tapestry of global cuisine.

Variations by Industry

The earning potential within different industries can vary significantly based on factors including profit margins, growth prospects, and barriers to entry.

Specific industries, such as technology and pharmaceuticals, often have high profit margins due to the high demand for their products or services.

These industries invest heavily in research and development to create innovative products, leading to a competitive advantage and higher profit margins.

On the other hand, industries such as retail or hospitality usually have lower profit margins due to higher operating costs and intense competition.

Growth prospects also play a significant role in determining earning potential. Industries with solid growth prospects, such as renewable energy or e-commerce, often offer higher earning potential as they are in high demand and experiencing rapid expansion.

Conversely, industries with limited growth prospects, such as traditional manufacturing or print media, may have lower earning potential.

Barriers to entry can also impact earning potential. Industries with high barriers to entry, such as telecommunications or aerospace, often have limited competition, allowing these industries to charge higher prices and generate higher profits.

Conversely, industries with low barriers to entry, such as online retail or food services, often have more competition and lower profit margins.

The market demand for its goods and services can significantly impact income in a particular industry.

When there is high demand for a product or service, companies can charge higher prices, leading to increased revenue and potentially higher employee salaries.

Conversely, industries with low market demand may need help to generate sufficient revenue, resulting in lower earning potential.

In addition to profit margins, growth prospects, market demand, regulation, and compliance costs also influence the earning potential of different industries.

Financial services and healthcare are highly regulated industries where significant compliance costs can negatively affect profitability.

Conversely, industries with fewer regulations, such as software development or consulting, may lower compliance costs and higher earning potential.

TIP: Earning potential varies across industries based on profit margins, growth prospects, barriers to entry, market demand, and regulation and compliance costs. Industries with high-profit margins, strong growth prospects, limited competition, high market demand, and lower regulation and compliance costs generally offer higher earning potential.

Variations by Size of Business

The income of small business owners can vary significantly based on the size of their business.

Smaller businesses, with fewer employees and less average revenue, often generate lower income for their owners.

On the other hand, larger businesses have the potential for higher income due to their increased resources and market share.

The size of a business directly impacts the potential for higher income. Larger enterprises typically have more customers, which leads to increased sales and revenue.

Additionally, they often have more resources and capabilities. These resources allow them to use economies of scale and reduce costs.

This difference in size can result in larger profit margins and higher salaries for the owners.

Several factors contribute to more significant profits and higher salaries for small business owners.

These include effective financial management, strategic marketing, and efficient operations.

Small businesses that successfully manage their cash flow, control expenses, and maximize revenue streams are more likely to generate bigger profits.

Moreover, companies that effectively market their products or services, build a solid customer base, and maintain customer loyalty will likely see higher sales and profits.

Lastly, businesses that streamline operations and optimize production processes can reduce costs, increasing profit margins.

Expanding cash flow is crucial for increasing income as a small business owner. Cash flow can be increased by attracting more customers, improving sales, and ensuring timely payments.

Additional cash flow can be achieved by implementing various strategies, such as offering other products or services, expanding to new markets, diversifying revenue streams, adopting effective pricing strategies, or improving payment processes.

TIP: Small business owners’ income varies based on their business size. Larger businesses have the potential for higher income due to their increased resources and customer base. Effective financial management, strategic marketing, and efficient operations contribute to larger profit margins and higher salaries. Expanding cash flow is essential for small business owners looking to increase their income and can be achieved through various strategies.

Variations by Gender

The gender wage gap persists in many sectors, including small business ownership. Regarding self-employed women, the earnings difference compared to their male counterparts is concerning.

Recent studies have found that self-employed women earn 28% less than men in similar positions.

This large gap between men and women-owned businesses highlights the inequality within this workforce segment.

One significant factor contributing to this wage disparity is that 20% of self-employed women feel the need to charge less than their male counterparts for similar products or services.

This situation further exacerbates the earnings difference, implying that women undervalue their work due to societal norms and expectations.

These variations in the wage gap among self-employed individuals are troubling, as small business ownership is often seen as an avenue for economic empowerment.

The fact that women in this sector face such significant disparities in earnings underscores the need for action to address gender inequality.

TIP: The gender wage gap persists even in small business ownership, with self-employed women facing an earnings difference of 28% less than men. The added pressure to charge less than male counterparts further compounds this issue. It is essential to acknowledge and address these variations by gender to promote equality and empower women in the business sector.

Factors That Impact Salaries

Factors that impact salaries can vary greatly depending on the industry, job market, and individual circumstances.

In the context of small business owners in the United States, several major elements contribute to the range of salaries and their average income.

One central element is the size of the business. Small businesses can vary significantly in terms of revenue and profitability.

A small business owner operating a successful enterprise with high sales and profit margins will likely earn a higher salary than someone running a smaller or less profitable business.

Additionally, the industry plays a significant role in determining salaries. Some industries, such as technology or finance, offer higher average wages due to increased demand for skilled professionals and the potential for lucrative business opportunities.

On the other hand, industries like retail or hospitality may have lower average salaries due to lower profit margins and competition.

Moreover, experience and skill set are crucial factors in shaping a small business owner’s income.

A highly experienced and skilled owner with a track record of success and expertise will likely command a higher salary than a business owner with less experience or limited skills.

Other factors, such as location and economic conditions, also impact salaries. Business owners in cities with higher living costs and stronger economies generally earn higher salaries than those in rural areas with lower living costs and weaker economic conditions.

TIP: Small business owner salaries in the United States can vary significantly due to several significant elements. These include the business size, the industry in which it operates, the owner’s experience and skill set, and location and economic conditions. Understanding these factors is crucial for assessing and shaping income within this job market segment.

Economic Factors Impacting Small Business Owners’ Salaries in 2024

As the global economy evolves, small business owners constantly face various economic factors that impact their salaries.

With the ever-changing business landscape, these entrepreneurs must stay informed about the economic environment to make strategic decisions that optimize their earnings.

Let’s explore some economic factors expected to influence small business owners’ salaries in 2024.

By analyzing these factors, small business owners can better understand the potential challenges and opportunities they may encounter, enabling them to navigate the economic landscape effectively and ensure the financial success of their ventures.

Economic Growth and Expansion

Economic growth and expansion are significant for small businesses, as they directly influence their potential to increase annual income and market share.

Small businesses constantly strive to achieve economic growth, which refers to increased production and consumption of goods and services over time.

This growth translates into higher profits, improved financial stability, and a greater market presence for small businesses.

Several factors contribute to economic growth and expansion for small businesses. Firstly, financing options play a crucial role in facilitating growth.

Small businesses can consider external funding sources such as business loans, grants, or investors to infuse capital into their operations.

This financial support allows them to expand operations, onboard more employees, and invest in new technologies or marketing strategies.

Another vital factor is reinvesting profits back into the business. Small businesses can strengthen their market position and achieve sustainable growth by allocating a portion of their earnings towards expanding their operations.

This reinvestment can be made in various forms, such as upgrading infrastructure, enhancing product offerings, or expanding into new markets.

Monitoring financial health is also essential for economic growth and expansion. Small businesses must carefully manage their cash flow, expenses, and profitability to ensure long-term sustainability.

Regular financial assessments help identify areas of improvement and enable strategic decision-making.

TIP: Economic growth and expansion are crucial for small businesses to increase their annual income and market share. By leveraging financing options, reinvesting profits, and monitoring financial health, small businesses can achieve sustainable growth, drive innovation, and enhance their overall competitiveness in the market.

Access to Capital and Funding Opportunities

Small businesses often face significant challenges when accessing capital and funding opportunities.

However, there are various ways in which they can secure the financial resources needed to grow and thrive.

One option for small businesses is to seek funding from the government. The government provides significant funding and loans to small businesses each year.

In fact, according to recent data, small businesses received a staggering $43 billion in funding and loans from the government.

This funding can be a lifeline for small businesses, helping them to cover start-up costs, expand operations, or invest in new equipment.

Despite the availability of government funding, there are still millions of small businesses with unmet financial needs each year.

These businesses need access to the capital they need to grow and are often left without the resources necessary to succeed.

This lack of financing highlights small businesses’ ongoing challenges and the need for more accessible funding opportunities.

Small businesses must explore a range of avenues to improve access to capital and funding opportunities.

This search may include seeking alternative funding sources such as angel investors, venture capital firms, or crowdfunding platforms.

Additionally, small firms can investigate grants specifically designed for their industry or region.

While challenges are involved in accessing capital and funding opportunities for small businesses, there are also numerous avenues to explore.

By actively seeking these opportunities, small businesses can increase their chances of securing the financial resources needed to thrive and grow despite lacking capital.

Supply Chain Issues and Pricing Pressures

Supply chain issues can significantly impact pricing pressures and force small business owners to increase their prices to offset the challenges caused by these issues.

When supply chain disruptions occur, businesses may experience delays in receiving essential goods or materials, leading to increased costs and reduced inventory levels.

The supply chain issues can result in a higher cost of acquiring the necessary inputs to produce goods or provide services, ultimately leading to price hikes.

One specific example of pricing increases caused by supply chain challenges is the rise in food prices in the hospitality sector. Restaurants heavily rely on a steady supply of fresh ingredients to prepare meals for their customers.

When supply chain issues, such as transportation bottlenecks or production shortages, affect the availability of these ingredients, restaurants are often forced to pay higher prices or find alternative suppliers.

These increased costs are then passed on to the customers through higher menu prices to maintain profit margins and cover the additional expenses.

Another example is the technology industry, where supply chain disruptions caused by environmental disasters or global trade tensions can result in higher prices for consumer electronics.

Small tech businesses often rely on imported components or finished goods from overseas suppliers.

When these supply chains are disrupted, companies may need to source materials or products from more expensive alternatives, causing an increase in production costs.

As a result, consumers may see higher price tags on laptops, smartphones, or other electronics.

TIP: Supply chain issues can create pricing pressures for small-business owners who are inevitably forced to hike prices to offset their increased costs. These challenges are across various industries, including the hospitality and technology sectors. In such cases, small-business owners must pass on these additional expenses to their customers, leading to increased prices.

Digital Transformation, Artificial Intelligence, and Automation

Digital transformation, artificial intelligence, and automation have significantly impacted small businesses, particularly in relation to their digital presence.

This technology trio has revolutionized how small businesses engage with customers, streamline operations, and ultimately stay competitive in the eCommerce market.

Digital transformation allows small businesses to embrace digital channels and technologies to enhance their online presence.

By adopting digital strategies, small businesses can effectively reach a larger audience, improve customer experience, and drive sales.

This transformation enables small businesses to leverage social media platforms, develop mobile-friendly websites, and implement digital marketing techniques to increase their visibility in the competitive online landscape.

Artificial intelligence (AI) enhances small businesses’ digital presence. AI-powered chatbots can provide personalized customer support, helping small businesses engage with customers and address their queries in real time.

AI algorithms also analyze customer data to uncover valuable insights that aid decision-making, product development, and marketing strategies.

By harnessing AI technologies, small businesses can deliver highly tailored experiences that drive customer satisfaction and loyalty.

Automation empowers small businesses to streamline their operations and improve efficiency. It automates repetitive tasks, such as order processing, inventory management, and customer data management, freeing up valuable time and resources.

The AI enables small businesses to focus on higher-value initiatives, such as product innovation and customer relationship management, ultimately enhancing their digital presence.

Incorporating digital transformation, artificial intelligence, and automation in eCommerce is crucial for small businesses to stay competitive.

These technologies enable small businesses to establish and maintain a robust digital presence, enhance customer experiences, and optimize operational efficiency.

By embracing these technologies, small businesses can tap into the numerous opportunities the digital world offers and forge a path toward sustained growth and success.

Consumer Demand and Spending Habits

Consumer demand refers to the desire and willingness of individuals to purchase goods and services. On the other hand, spending habits refer to consumers’ patterns and choices when allocating their income towards different products and services.

Understanding consumer demand and spending habits is crucial for businesses. This grasp of consumer behavior allows them to pinpoint their marketing strategies and offerings.

Knowing your customer means you can meet the needs and preferences of their target customers.

Customer engagement plays a significant role in shaping consumer demand and spending habits.

By engaging with consumers and creating a positive experience, small business owners can build trust and loyalty among their customer base.

Effective customer engagement strategies such as personalized marketing campaigns, social media interaction, and exceptional customer service can influence consumer demand by increasing brand awareness and creating favorable associations with the products or services offered.

These strategies can overcompensate despite a lack of demand for your products or services.

Customer retention is equally important as it contributes to consistent consumer demand and spending habits.

Implementing customer loyalty programs is a proven strategy to boost customer retention and revenue.

These programs reward frequent buyers or patrons with incentives such as discounts, exclusive offers, or redeemable points, enticing them to stay loyal to a particular brand.

Increasing customer retention through loyalty programs ensures a stable consumer demand. It drives more significant revenue as repeat customers tend to spend more and provide positive feedback to attract new customers.

To continuously improve and meet consumer demand, businesses should gather and act on customer feedback.

Customer feedback, whether obtained through surveys, reviews, or social media interactions, provides valuable insights into consumer preferences, satisfaction levels, and areas of improvement.

When companies actively listen to customer feedback, they can adjust their products, services, or customer experience, ultimately enhancing consumer demand and spending habits.

TIP: Customer engagement and retention strategies influence consumer demand and spending habits. Implementing customer loyalty programs increases customer retention and revenue while gathering and acting on customer feedback guides ongoing improvements. By employing these strategies and keywords, businesses can better understand and meet their target customers’ evolving demands and preferences.

Conclusion

In summary, the earnings of small business owners in 2024 vary widely, as evidenced by the diverse experiences of the five entrepreneurs we highlighted.

From the tech-savvy start-up founder to the traditional brick-and-mortar shop owner, each story underscores a unique journey in the realm of small business. While some have navigated the challenges of a dynamic economic landscape with innovation and adaptability, others have embraced the strength of community and niche markets.

These narratives reflect the financial realities facing small businesses today and highlight the resilience, creativity, and dedication that define the entrepreneurial spirit.

As the business landscape continues to evolve, these stories offer valuable insights into the multifaceted world of small business ownership and the myriad factors that influence its financial outcomes.

Frequently Asked Questions:

How much do small business owners make in 2024?

Small business owners make a wide range of salaries in 2024, as their money depends on various factors. Small business owners who have been in the business for several years can make a good living. However, those just starting may initially struggle and earn significantly less.

As a business owner how much should you pay yourself?

Knowing how much you should pay yourself to keep your business running strong is essential as a small business owner. While many entrepreneurs aim for high salaries, setting realistic goals is key when determining your pay rate. Your salary should allow you to cover expenses and save for retirement while allowing your business to grow and foster success.

When deciding what salary to set for yourself, consider factors such as the size of your new business, industry standards, personal goals and needs, and the current market conditions. Additionally, it’s essential to factor in taxes and other costs associated with running a business.

What percentage of small businesses make money in their first year?

According to experts, only about 30 percent of small businesses turn a profit in their first year. This number varies depending on the type of business and the industry, and factors such as location can also have an effect.

Bear in mind that the future failure rate of small business owners is hard to predict. While some may experience tremendous financial success, the truth is that most small businesses fail within their first five years. Small business failure statistics are estimated to be around 80%. While a few lucky entrepreneurs will make good money from their endeavors in 2024, most may not see much.

Most business owners intend to profit in their first year, but this is often difficult due to the high startup costs of starting a business. It’s essential to have realistic expectations and prepare for the possibility that it may take longer than expected to turn a profit.

How many businesses make over $1 million?

In 2024, estimates are that small business owners will make much more than they did in 2020. According to an analysis by the Small Business Administration (SBA), the median income of small business owners was $63,000 in 2020 and expects to increase by 11% by 2024. This estimated growth rate implies that the median income of small business owners could be around $70,000 by 2024. Additionally, estimates are that about 5-7% of small business owners will make over $1 million in 2024, depending on the industry and other factors.