107+ Noteworthy Small Business Statistics That Will Accelerate Your Spa & Salon Growth

Tracking industry data can benefit just about any entrepreneur.

By keeping an eye on the facts and stats relevant to your business, you’re able to identify trends and discern where the industry is headed. It also helps you benchmark your business and determine how you’re performing compared to other players in your space.

The good news, (or possibly bad news, depending on how you look at it) is there’s no shortage of statistics, particularly in the small biz realm. There are tons of studies and surveys out there that reveal some interesting tidbits about being a small business.

To help you sift through all that information, we’ve put together a comprehensive list of noteworthy small business statistics. And to make it easier to browse, we’ve categorized these facts and stats based on several parameters.

Let’s get started.

General small business statistics

To kick things off, here are some general statistics around small businesses. Here you’ll gain insights into the state of SMBs, the demographics behind most small businesses, and why many of them fail within 5 years. 

1. As of 2020, there were 804,398 newly-established businesses (i.e., less than a year old) in the United States. (Statista)
2. That’s a 35.72% increase from 10 years ago. In 2010, there were only 560,558 newly-established businesses in the US. (Statista)
3. 82% of small businesses fail because of poor cash management. (US Bank, cited by Entrepreneur)
4. The average salary of small business owners in the US is $59,000 a year. (PayScale, cited by The Balance)
5. There are 60.6 million small business employees in the US. (Small Business Administration)
6. Small business employees represent 47.1% of all United States employees. (Small Business Administration)
7. There are 5.2 million self-employed minorities. (Small Business Administration)
8. More than 90% of the business population are small businesses. (Salesforce, cited by Oberlo)
9. 29% of people started their business to be their own boss. 17% were dissatisfied with corporate America and 16% wanted to follow their passion. (Guidant Financial)
10. Millennial and Gen Z entrepreneurs are 183% more likely to have wanted to start a side business. (Salesforce)
11. 20% of small businesses fail within the first year. (US Bureau of Labor Statistics cited by Lending Tree)
12. 50% fail after 5 years, and just about 33% of small businesses survive after 10 years. (US Bureau of Labor Statistics cited by Lending Tree)
13. Over 11.6 million businesses are owned by women. (National Association of Women Business Owners)
14. One in five firms with revenues of $1 million or more is woman-owned. (National Association of Women Business Owners)
15. 4.2% of all women-owned firms have revenues of 1 million or more. (National Association of Women Business Owners)

Hair and beauty salon statistics

This section dives into facts and stats about hair and beauty salons. If you’re curious about the size of the industry as well as what drives hair and beauty clients to book appointments, the following points will give you a lot to think about. As of 2021, there are 973,112 hair salon businesses in the US. (IBISWorld) 

Hair salon businesses in the US saw 0.6% growth in 2021. (IBISWorld) 

Hair salons in the US saw an annualized business growth of 1.1% from 2016-2021 (IBISWorld) 

Clients looking for beauty-related services rank online booking as the third most important factor in a good experience

Negative reviews affect 80% of beauty clients. Good reviews from beauty clients drove 87% of rebookings in 2020.

3 in 5 clients in the beauty industry are willing to pay 25% more for a good experience. 

43% of beauty clients will pay more for convenience. These clients also regard a positive experience as more influential than ads. In the hair industry, not having online booking is the #1 reason behind negative client experiences.

77% of hair clients will spend $25 more on $100 worth of services if they have a positive experience.

83% of hair clients will not book a service if they encounter a negative review.

Operating expenses can account for up to 80% of salon revenue. (Salt Society)

In 2020, 13.76 million Americans used professional hair coloring 4 times or more within 6 months (Statista)

The US hair care services industry has combined annual revenue of $20 billion. (Dun & Bradstreet)

The 50 largest beauty salons in the US generate 15% of industry revenue. (Dun & Bradstreet)Sales of hair care products at salons contribute 5% to 25% of revenue. (Dun & Bradstreet)

Spa statistics

If you’re a wellness pro, the following stats will pique your interest. This section compiles some industry-wide statistics about spas and contains interesting details on how spa-goers feel about their wellness experiences. 

1. The health and wellness spa industry has a market size of $18 billion in the US. (IBIS World)
2. There are 22,054 health and wellness spas in the US. (IBIS World)
3. The industry employs 356,997 professionals. (IBIS World)
4. The global market size of the spa industry is projected to hit 127.6 billion dollars by 2022. (Statista)
5. 187 million visits were made to spas in the US in 2017. (Statista)
6. 55% of clients believe that friendly and competent service providers contribute to a great wellness experience.
7. 84% of wellness clients won’t book a service if the business has negative reviews.
8. 61% of wellness clients won’t return to the business following a bad experience. 
9. 47% of spa goers don’t have a gender preference when choosing a service provider. (International Spa Association) 
10. More than two-thirds of spa-goers have booked a massage, making it the most frequently booked spa treatment. (International Spa Association) 

Barbershop statistics

The following stats are all about barbershops. It sheds light on the size and growth of the market, along with insights into the behaviors and preferences of barbershop clients. 

1. The barbershop industry has a market size of $5 billion in the US. (IBIS World)
2. There are 131,077 barbershops in the United States. (IBIS World)
3. The industry employs 152,201 professionals. (IBIS World) 
4. The barbershop industry grew 5.3% from 2015-2020. (IBIS World)
5. The 50 largest barbershops in the US account for 30% of industry revenue. (Dun & Bradstreet)
6. 73% of barbershop clients are willing to pay upto 25% more if they are guaranteed a good experience.
7. The #1 reason behind a poor barbershop client experience is the lack of online booking.
8. 38% of barbershop entrepreneurs work 60 hours or more per week.
9. The average salary at barbershops is $26,618 per year. Male employees earn $27,736 while female employees earn $23,545. (Data USA)
10. The average employee age at barbershops is 41.1. (Data USA)

Marketing statistics

Marketing plays an important role in the success of any salon, spa, or barbershop. So, we’ve put together some notable stats on the most popular marketing channels in these industries, including Instagram, Facebook, and YouTube.

1. 74% of companies invest in social media marketing. (HubSpot)
2. In terms of social media ROI, marketers see the highest return from Facebook, followed by Instagram, then Twitter. (HubSpot)
3. 60% of smartphone users have contacted a business directly using search results. (Think with Google)
4. 50% of marketers spend at least half of their budget on social media ads. (Smartly)
5. Facebook has an advertising audience of 2.14 billion. (Hootsuite)
6. On average, Facebook users click on 12 ads per month. (Hootsuite)
7. Facebook clicks on searches for local business increased 23% from February to May, 2020 (Hootsuite)
8. Facebook reaches 59% of the world’s social media population. (eMarketer)
9. Instagram hit a billion users in 2020. (eMarketer)
10. Those between the ages of 25-34 are most likely to be on Instagram. This is followed by 18 to 24-year-olds. (Statista) 
11. Instagram sees the lowest usage from those aged 65 and above. (Statista) 
12. Hispanic Americans are among the highest users of Instagram. (Pew Research) 
13. 63% of US adults who use Instagram check it daily. (Pew Research) 
14. Youtube is used by 55% of marketers. (Social Media Examiner)
15. More than 2 billion logged-in users visit YouTube every month. (YouTube)
16. Over 70% of views come from mobile devices. (YouTube)
17. Video is the #1 form of media used in content strategy, overtaking blogs and infographics. (HubSpot)

Ratings, reviews, and social proof statistics

Many clients rely on ratings, reviews, social proof when choosing service providers, which is why we’ve put together a handful of stats highlighting the importance of these components. 

1. 93.9% of clients will check out Google and Yelp reviews when considering a new service provider.
2. 85.2% of clients look at social media reviews when considering service providers.
3. A one-star increase in a business’ Yelp account leads to a 5% to 9% revenue increase. (Harvard Business School)
4. 73% of customers believe that written reviews have a stronger impression than just star-ratings. (Fan & Fuel)
5. 87% of consumers read online reviews for local businesses. (BrightLocal)
6. Customers consider the following review factors, in order of importance: star rating, legitimacy, recency, sentiment, quantity. (BrightLocal) 
7. Less than half (48%) would choose a business with fewer than 4 stars. (BrightLocal)
8. 93% of customers say online reviews have influenced their purchase decisions. (Podium)
9. 53% of consumers expect companies to respond to negative reviews within a week. (ReviewTrackers)
10. 63% of consumers say that they’ve never gotten a response from their reviews. (ReviewTrackers)
11. 94% says that a negative review drove them away from a business. (ReviewTrackers)
12. 82% of consumers keep an eye out specifically for negative reviews. (PowerReviews)
13. Winners of corporate awards see 37% more sales growth. (Business.com)
14. Customers ages 18-29 are more likely to check reviews. 53% of these consumers say they always/almost always check reviews, compared to those ages 30-49 (47%) and 50-64 (34%). (Pew Research)
15. Mobile searches for “best” increased 80% from 2015 to 2017. (Google)

Client and customer experience statistics

The experiences that clients and customers have in a business greatly influences their loyalty. Take a look at the stats below to get a better understanding of what people value when it comes to the businesses they support. 

1. 45.9% of business professionals say that customer experience is a priority for them in the next 5 years (SuperOffice)
2. 86% of buyers will pay more for a better experience. (SuperOffice)
3. 80% of consumers consider the brand experience to be just as important as their products and services. (Salesforce)
4. 95% of customers say they are more likely to be loyal to a company they trust. (Salesforce)
5. 59% of consumers regard customer service as very important when choosing a brand. (Microsoft)
6. 48% of people want specialized treatment for being good clients. (Accenture)
7. 67% of people say their standards of good experiences are higher than ever. (Salesforce)
8. 51% of customers say that most companies don’t meet their expectations. (Salesforce)
9. Companies that offer great experiences grow revenues 4% to 8% above their market. (Bain & Company)
10. 54% don’t believe that businesses have their best interests in mind. (Salesforce)
11. 89% of consumers have switched to doing business with a competitor following a poor experience. (Harris Interactive, cited by Nextiva)
12. Customers are 4 times more likely to buy from a competitor if they encounter a service-related problem (Bain & Company, cited by Salesforce).
13. It takes 12 positive customer experiences to make up for a single bad experience (FreshLime) 
14. 84% of people factor in customer service when making a purchase decision (Zendesk)
15. 75% of customers say that a human touch is important to the experience. (PwC)

Technology statistics

Technology is an essential component of running a business — even small ones. As such, this section compiles some technology-related statistics surrounding small businesses and their clients. 

1. Digitally advanced small businesses experience 4 times as much revenue growth compared to those who aren’t digitally-savvy. (Deloitte)
2. 38% of small businesses are driven to adopt digital tools to increase sales and revenue. 31% do it to increase brand awareness and 30% do it to access new customers and connect with customers 24/7. (Deloitte)
3. 64% of small businesses have a website. (Top Digital Agency)
4. 44% of clients prefer to book service appointments online.
5. 53.6% of clients prefer to receive appointment reminders via SMS and 16.9% prefer to receive them via email. 
6. Most small businesses (69%) value ease of use when choosing technology solutions.  (Salesforce)
7. 43% of cyber attacks happen to small businesses. (SmallBizTrends)
8. 48% of data breaches are due to malicious intent. Human and system error account for the rest. (SecurityIntelligence)
9. Only 19% of small businesses have IT support. (SMB Group)
10. Poor integration is costing businesses half a million dollars annually. (Cleo)

Knowledge is essential to success

Hopefully, the facts and stats above gave you some interesting knowledge and insights on how to run a better small business. If you need more small biz insights, Booksy has you covered. Our newsletter delivers hand-picked content to your inbox regularly, plus it’s free! Sign up today.