Average Age of Small Business Owners
In 2023, the number of small businesses in the United States hit 33.3 million in 2023, marking a 0.3% increase from the previous year. They constitute almost all US businesses and hire 61.6 million employees.
If you’re thinking about starting a business, a general landscape aside, it might also help to know the average age of small business owners to understand the competition better. Here’s a breakdown of small business owners by age.
The average age of small business owners in the US: 2024
|
Generation (and current ages) |
Percentage of small business owners belonging to the generation |
|---|---|
|
Millennials (23 to 38 years old) |
16% |
|
Generation X (39 to 54 years old) |
47% |
|
Boomers (55 to 73 years old) |
37% |
Data from a recent study analyzing small business owners by age shows that Generation X remains the dominant group, representing 47% of owners. By the study’s definition, Generation X refers to people born aged 39 to 54 in 2024. This is to say that nearly one out of every two small business owners currently falls within this age range. This is a marginal 0.2 percentage point annual decrease, as the same study conducted in 2023 had Generation X constituting 47.2% of all small business owners.
The study analyzing small business owners by age shows that the boomer generation forms the second-largest group. More than one-third (37%) of small business owners in 2024 are between 55 and 73 years old this year. This marks a 2.6 percentage point fall from the previous year’s 39.6%. Analysts attribute this to many of them reaching retirement age and the COVID-19 pandemic, which led to a surge in boomers opting for early retirement.
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Together, Generation X and baby boomers make up as much as 84%—more than four out of every five—of all small business owners in 2024. This means that, at present, the average age of small business owners is between 39 and 73.
Millennials account for 16% of small business owners. By the study’s definition, these are individuals who are aged from 23 to 38 years old this year. This represents an increase of 3.1 percentage points from 2023, and experts expect this to rise over the coming years as more millennials begin exploring entrepreneurship. In fact, analysts estimate the average age of new business owners to be around 34.
The analysis of small business owners by age shows that the percentage of entrepreneurs belonging to the post-war generation in 2024 is negligible. In contrast, a year ago, they made up 0.3% of all small business owners.