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How Much Small Business Owners Earn in 2025 (And What Affects It)
Explore the income levels of small business owners in 2025 and the key factors that influence income. Understand future industry trends through real data analysis.
In 2025, small business owners are working hard to grow in a world that is always changing. Many people want to know the average income of a small business owner today. This number can be very different depending on the type of business, the location, and the current economy. Before we look at the numbers, it’s important to know what is considered a small business. In most cases, it means a company with a small team, lower annual sales than large companies, and local or niche customers. The income of these owners is shaped by many things, like market trends, customer demand, and new technology. Some owners earn steady money each month, while others have unstable income. This article will explain how much small business owners make in 2025 and the main factors that can increase or reduce their earnings.
#01 Average Income of Small Business Owners in 2025
Before we talk about numbers, we need to know what is considered a small business.
A small business usually:
- Has a small team (often fewer than 50 employees)
- Makes less yearly revenue than big companies
- Can be a shop, an online store, a service company, or a small factory
1. Overall Average Income in 2025
According to ZipRecruiter /PayScale statistics, recent reports give different numbers for the average income of a small business owner:
- ZipRecruiter: about $127,973 per year (average business owner salary)
- PayScale: about $75,232 per year
- Other studies: median income around $67,000
The numbers are different because not all small businesses earn the same.
2. Differences by Industry
Earnings depend on the type of business:
- Retail shops: often under $60,000 per year
- E-commerce stores: can be very low or very high, depending on growth
- Construction or manufacturing: often over $100,000 per year
- Specialized services: can be higher than average if skills are in demand
3. Differences by Location
Where the business is based also affects income:
- United States: higher in big states like California and New York, but of course， costs are also higher
- Canada: CAD $60,000–$90,000 per year
- United Kingdom: £45,000–£60,000 per year
- Australia: AUD $70,000–$95,000 per year
In 2025, small business owners' income changes a lot based on industry, location, and business performance. Some earn a steady, comfortable living, while others make much more — or less — depending on their situation.
#02 How Much Does a Small Business Owner Make per Month?
To find out how much does a small business owner make per month, you can start with the yearly income and divide it by 12.
For example:
- If a small business owner earns $84,000 a year, the monthly income is about $7,000.
- If the yearly income is $60,000, the monthly income is $5,000.
This is a simple way to get an average number, but real life is often not so even.
1. Growth Stage vs. Mature Stage
How much does a small business owner make per month can be very different for new businesses compared to established ones.
- Growth stage: In the first few years, monthly income may be low or even negative because profits are used to pay for rent, staff, and marketing.
- Mature stage: Once the business has regular customers and stable sales, monthly income can grow a lot and become more predictable.
For example, a bakery in its first year might only bring in $2,000 per month for the owner. After five years, it could be $8,000 per month or more.
2. Industry Impact on Monthly Earnings
The type of business also changes how much does a small business owner make per month:
- Retail shops: often $3,000–$5,000 per month for the owner
- E-commerce: can be under $1,000 or over $10,000 depending on sales volume
- Construction or manufacturing: often $8,000–$12,000 per month
- Professional services (law, design, consulting): can be $6,000–$15,000 per month
There is no single answer to how much does a small business owner make per month. It depends on the stage of the business, the industry, and how well the company is run.
#03 How Much Money Does a Small Business Make in the First Year?
When people ask how much money does a small business make in the first year, the truth is that the number can be very different. Before looking at figures, remember what is considered a small business — usually a company with fewer than 50 employees and lower yearly sales than big corporations. The average income of small business owner is much lower in the first year compared to later years because they are still building their customer base.
1. Common Income Range in Year One
Studies show that how much money does a small business make in the first year can range from almost zero to around $50,000 for the owner. Many new companies even lose money in the first year , because they spend more on rent, equipment, and marketing than they earn. In fact, the average business owner salary in year one is often less than half of what it will be in year five.
2. The Break-Even Challenge
Reaching the break-even point — when income covers all expenses — is one of the biggest challenges in year one. For many owners, it takes 12–18 months before they see steady profits. This is why the average income of small business owner in the early stage is often unpredictable.
3. First-Year Income by Industry
The type of business affects how much money does a small business make in the first year:
- Retail store: $10,000–$30,000 for the owner
- E-commerce shop: $5,000–$40,000 depending on sales
- Service business (cleaning, consulting): $15,000–$50,000
- Construction or manufacturing: $20,000–$60,000 if contracts are secured early
How much money does a small business make in the first year depends on the industry, location, and how quickly the owner can attract customers. Most earn modest amounts at first, but income often grows as the business matures.
#04 Average Gross Revenue for Small Business with 10 Employees
In 2025, the average gross revenue for small business with 10 employees is often between $1 million and $2.5 million per year. This number shows the total money the business brings in before paying expenses like rent, salaries, and materials. While this may sound like a lot, the average income of small business owner is much smaller because running costs take a big part of the revenue.
1. Differences Between Team Sizes
A company with 10 employees usually earns more total revenue than one with only 2 or 3 staff members. However, the average gross revenue for small business with 10 employees is not always enough to guarantee high profit. More workers can mean higher sales, but also higher costs. A smaller team may have lower total revenue, but sometimes the owner can keep more as profit.
2. Costs That Affect Owner Income
Two main costs reduce the average business owner salary:
Fixed costs – such as rent, insurance, and loan payments.
Labor costs – salaries, benefits, and training for the 10 employees.
Even if the average gross revenue for small business with 10 employees is high, these costs can make the average income of small business owner lower than people expect.
The average gross revenue for small business with 10 employees is usually much higher than for very small teams, butprofit depends on how well costs are managed. Owners who control expenses and keep productivity high can turn strong revenue into a healthy income.
#05 How Much Does a Business Owner Make an Hour?
When people ask, “how much does a business owner make an hour,” the answer can vary a lot. To find this number, you can take the average business owner salary per year and divide it by the total hours worked. For example, if a business owner earns $80,000 a year and works 2,000 hours, the hourly rate is about $40. But many owners work far more than 40 hours a week, which can lower the real hourly income.
Some are surprised to see that how much does a business owner make an hour can be less than a skilled employee’s wage, especially in the early years. Employees often get paid for every hour worked, while owners invest time in planning, marketing, and solving problems without direct pay. Over time, as the business grows,the average business owner salary per hour can rise well above typical employee rates.
Efficient time use is key to increasing how much does a business owner make an hour. If an owner spends too much time on low-value tasks, hourly pay drops. By delegating work and focusing on high-value activities, owners can boost both revenue and hourly income.
How much does a business owner make an hour is not just about money earned — it reflects how wisely an owner uses their time. Better time management and business growth can turn long hours into higher rewards.
#06 Key Factors That Affect Small Business Owner Income
Not all small business owners earn the same. Several key factors can change the average business owner salary. Here are the main points to consider:
1. Industry and Business Model
- Different industries pay differently. For example, a small bakery may earn less than a small construction company.
- A business model that sells online might grow faster than a traditional shop, increasing the average business owner salary.
2. Location
- Where the business is located matters a lot. Owners in big cities often earn more money than those in small towns.
- Costs like rent, utilities, and wages also vary by location, which affects profits.
3. Experience and Management Skills
- Business owners with more experience usually manage resources better.
- Good planning, budgeting, and leadership can increase profits and the average business owner salary.
4. Market Demand and Economic Environment
- High demand for a product or service can boost income.
- Economic problems, like a recession, can lower earnings even if the business is well run.
5. Digital Tools and Marketing Strategy
- Using social media, e-commerce, and online advertising can bring more customers.
- Digital marketing and automation help owners save time and increase sales.
The average business owner salary depends on many things. Knowing what is considered a small business helps put income numbers into context. Even businesses of the same size can earn very different amounts depending on industry, location, skills, and market conditions. Smart decisions and good strategies make a big difference in small business success.
#07 Tips to Increase Your Small Business Owner Salary
Increasing your income as a small business owner takes smart planning and good decisions. Here are some tips to help grow your average business owner salary:
1. Optimize Pricing Strategy
- Make sure your products are priced fairly and competitively.
- Adjust prices based on costs, market demand, and what customers are willing to pay.
- Small price changes can make a big difference in your overall income.
2. Diversify Revenue Streams
- Don’t rely on only one product or service.
- Add new offerings, subscription services, or seasonal products to increase sales.
- More revenue sources mean your income is less affected by slow months.
3. Reduce Operating Costs
- Keep an eye on all expenses, like rent, utilities, and supplies.
- Negotiate with suppliers, and use cost-saving tools whenever possible.
- Lower costs directly increase your average business owner salary.
4. Boost Online Sales
- Many customers shop online, so having a good website is important.
- Platforms like Wegic make it easy to create professional websites quickly.
- A strong online presence helps reach more customers and increase sales.
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Wegic’s AI then generates a professional website tailored to your business. This makes it easy for small business owners to start online marketing quickly, even without technical skills. You can update products, add pages, and improve your online presence by continuing to interact with AI. Wegic helps businesses save time, reduce costs, and reach more customers online.
Start using your business website now! Talk to global customers, sell your products, and start your business plan. Through online marketing, more people will see your brand.
5. Hire and Train the Right People
- Good employees help the business run smoothly and attract more clients.
- Invest in training so your team works efficiently and reduces mistakes.
- The better your team performs, the higher your potential income.
By taking the steps above and following a planned approach, small business owners will improve their profits. Following these tips will help improve your average business owner salary and make your business stronger.
Conclusion:
In 2025, the average income of a small business owner will be different. It depends on things like the type of business, how big it is, and other factors. Some businesses make steady money each month, and their income grows over time. For example, in today’s AI world, many owners use Wegic AI to build their websites fast. This helps them get more customers and grow quickly. Planning for the future is very important. Business owners should watch new trends, take chances when they can, and change their plans to keep up with the times.
Written by
Kimmy
Published on
Aug 25, 2025
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