The typical U.S. small business owner is older and more educated than most people assume. Census Bureau data for 2023 show that 51% of employer-business owners are 55 or older, about 55% hold a bachelor's degree or higher, 22.9% of the 5.9 million employer firms are women-owned and 19.5% of owners were born outside the United States.
Who owns America's small businesses?
Women own 22.9% of U.S. employer firms and veterans own 4.4%, according to the Census Bureau's 2024 Annual Business Survey, which covers data year 2023. Of roughly 5.9 million businesses with employees, 1.4 million were women-owned and 261,000 were veteran-owned. Counting nonemployer businesses too, the U.S. had 36.4 million businesses, 14.2 million of them owned by women.
The racial mix looks different depending on whether a business has employees. White owners hold 80.6% of employer firms, but Hispanic and Black owners make up a much larger share of businesses run solo, which suggests many owners are still at the stage before their first hire:
| Owner group (Census) | Share of employer firms | Share of nonemployer businesses |
|---|---|---|
| White-owned | 80.6% (4.8 million) | 73.6% (22.4 million) |
| Asian-owned | 11.5% (685,000) | 9.2% (2.8 million) |
| Hispanic-owned | 8.4% (496,000) | 17.5% (5.3 million) |
| Black-owned | 3.4% (201,000) | 14.4% (4.4 million) |
| Women-owned | 22.9% (1.4 million) | 42.3% (12.9 million) |
| Veteran-owned | 4.4% (261,000) | 4.5% (1.4 million) |
Census counts owners in more than one group where that applies, so the columns do not add to 100%. Hispanic origin is counted separately from race. For deeper cuts by group, see our minority-owned business statistics and women-owned business statistics.
How old are small business owners?
Most small business owners are in the second half of their careers: 51.3% of employer-business owners are 55 or older, and 23.1% are 65 or older, in the Census Bureau's 2024 Annual Business Survey owner tables. Only 5.7% are under 35. These figures count individual owners, not firms, because many businesses have more than one owner.
| Owner age | Share of employer-business owners |
|---|---|
| Under 25 | 0.4% |
| 25 to 34 | 5.3% |
| 35 to 44 | 18.0% |
| 45 to 54 | 25.0% |
| 55 to 64 | 28.2% |
| 65 or over | 23.1% |
An older ownership base has two practical consequences. First, a large wave of businesses will change hands as owners retire, which is why buying an existing business is a realistic path for younger operators; our guide to funding to buy a business covers how acquisitions are usually financed. Second, established owners often have long credit histories and years of bank statements, which tends to widen their funding options compared with a first-year founder.
How educated are small business owners, and how many are immigrants?
About 55% of employer-business owners hold a bachelor's degree or higher, and 19.5% were born outside the United States, according to the same Census owner tables. Bachelor's degrees are the single most common level at 30.9%, followed by high school or GED at 18.1%, and 24.0% hold a master's, professional or doctoral degree.
Immigrant owners are a large group in absolute terms: 821,959 employer-business owners in the 2023 data were born abroad, while 96.5% of all owners are U.S. citizens. That combination, one owner in five foreign-born but nearly all of them citizens, reflects owners who arrived years ago and built a business after naturalizing. Our immigrant-owned business statistics break down which industries they concentrate in.
Education is not a requirement to start a business, and it does not appear on a funding application. What lenders and funders weigh is the business itself: time in business, monthly revenue, bank-account activity and the owner's credit.
How is the owner mix changing, and what does it mean for funding?
The fastest change is in women's ownership: the number of women-owned employer businesses rose nearly 20%, from 1,134,549 to 1,356,990, between 2017 and 2023, the Census Bureau reported in May 2026. Over the same period, employer firms owned by minority women grew 49.8% and those owned by female veterans grew 25.7%.
Growth at the nonemployer level is the pipeline for future employer firms, and it is where funding often decides whether a business can make its first hire. A solo owner with steady deposits may not fit a bank's checklist yet, but revenue-based options and smaller credit lines are underwritten mainly on cash flow. Our veteran-owned business statistics and small business employment statistics show where that first-hire gap sits.
The Broker Shop is a broker, not a lender: one application is matched to the funders whose guidelines you meet, so offers compete for your business. It is free to apply, and checking your options won't affect your credit score.
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One 2-minute application is matched to the funders whose guidelines you meet. It's free, and checking your options won't affect your credit score.
See What I Qualify For →The bottom line: America's small business owners skew older, educated and increasingly female, with one in five born abroad, and while none of that is on a funding application, the age profile signals a coming wave of business sales and the solo-owner pipeline shows where cash-flow-based funding matters most.
Frequently asked questions
Sources: U.S. Census Bureau — 2024 Annual Business Survey and 2023 Nonemployer Statistics by Demographics release (Nov. 2025) (5.9 million employer firms; 22.9% women-owned, 4.4% veteran-owned; race shares of employer and nonemployer businesses; 36.4 million total businesses) · U.S. Census Bureau — 2024 ABS Characteristics of Business Owners tables (owner age, education, place of birth and citizenship, data year 2023) · U.S. Census Bureau — Small Business Week story (May 2026) (women-owned employer firms 1,134,549 to 1,356,990, 2017–2023; minority women-owned +49.8%; female veteran-owned +25.7%). The 51.3% (55 or older) and roughly 55% (bachelor's or higher) figures are sums of the published Census categories.
Found these figures useful? You are welcome to cite or link to this page. Suggested attribution: “Small Business Owner Demographics 2026,” The Broker Shop — thebrokershopinc.com/small-business-owner-demographics-2026.html. Every figure links to U.S. Census Bureau Annual Business Survey releases and tables.