Connect with us

Business

Charted: Average Workers per U.S. Startup (1994-2023)

Published

on

See this visualization first on the Voronoi app.

Use This Visualization

Charted: Number of Workers in U.S. Startups Since 1994

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

This chart tracks the average number of workers at American startups in their first year of existence, from 1994 to 2023.

Data is sourced from the Bureau of Labor Statistics, published January 2024 and figures include founders if they were on the payroll for that year.

ℹ️ Per the source, startups are firms or establishments that are less than a year old.

New Businesses Are Starting Leaner Now Compared to the 90s

American firms founded in 2023 had an average of 4 workers in the first year compared to 7 in 1992.

YearAverage Employees
at Startup Birth
19947.2
19957.2
19967.2
19977.3
19987.3
19997.3
20006.9
20016.4
20026.4
20035.9
20045.6
20055.3
20065.0
20075.0
20084.9
20094.6
20104.5
20114.4
20124.4
20134.4
20144.4
20154.4
20164.3
20174.2
20184.2
20194.0
20204.0
20213.6
20223.5
20233.5

What’s particularly interesting about this trend is when it’s contrasted with another trend: the number of startups founded every year.

For example, America saw 1.5 million new startups in 2023 compared to around 500,000 in 1994.

Entrepreneurship is thus more accessible than ever—as evidenced by business applications growth—thanks to lower entry barriers to capital, distribution, and marketing.

However, these same technology gains may have also made it easier for startups to start leaner and still do business.

Tech firms, for example, are famous for starting small. Google was founded in a garage with two people (with a third person to become the first official employee).

Facebook came together with four Harvard roommates, of which one still heads the company.

It’s from this small size that “startup culture” has evolved. Smaller teams lead to flat hierarchies, collaboration, and risk-taking. Agility, passion, and a mission-driven mindsets are valued over rigid corporate structures.

Of course, this has downsides, such as stress levels, long hours, and job instability due to the unpredictable nature of early-stage companies. Additionally, the lack of structure and resources can lead to burnout and unclear roles.

Learn More on the Voronoi App

Many of these tech startup founders meet in university. But which ones? Check out: The Universities That Produce the Most Startup Founders for a quick list.

Click for Comments

Discover more visuals with Voronoi by Visual Capitalist Logo

Most Commonly Diagnosed Types of Cancer (Men & Women)

Popular