---
title: "20 small business developer hiring statistics that explain interest in no-code alternatives"
description: "Market data on developer hiring costs, talent availability, and how small businesses are building software without traditional development teams\n"
image: "https://hercules.app/blog/small-business-developer-hiring-statistics/opengraph-image"
---

# 20 small business developer hiring statistics that explain interest in no-code alternatives

Market data on developer hiring costs, talent availability, and how small businesses are building software without traditional development teams

- **Author:** [Grant Gurvis](https://hercules.app/blog/authors/grant)
- **Tag:** Company
- **Published:** 2026-11-03
- **Last updated:** 2026-11-04
- **URL:** https://hercules.app/blog/small-business-developer-hiring-statistics

U.S. software developers earned a [$135,980 median annual wage](https://www.bls.gov/ooh/computer-and-information-technology/software-developers.htm) in May 2025. For small businesses that need custom customer relationship management (CRM) systems, enterprise resource planning (ERP) systems, and operational tools, hiring a full-time developer can add a significant payroll expense. The [Hercules app builder](https://hercules.app/docs) offers another way to build these applications without hiring a traditional development team.

Hercules is an AI-powered no-code app builder that lets business owners create software by describing what they need in plain language. For businesses weighing a developer hire or an agency contract, this approach offers an alternative, although testing, subscription fees, and ongoing usage costs still matter.

## **Key takeaways**

- **Developer hiring is expensive:** U.S. software developers [earned a median $135,980](https://www.bls.gov/ooh/computer-and-information-technology/software-developers.htm) in May 2025, excluding additional employer expenses such as benefits and recruiting.
- **Developer demand is expected to continue:** The BLS projects approximately [95,300 annual job openings](https://www.onetonline.org/link/localtrends/15-1252.00) for U.S. software developers from 2025 to 2035, including replacement needs.
- **Freelance and agency costs vary:** Upwork lists software developer rates of [$10–$100 per hour](https://www.upwork.com/hire/software-developers/cost/), while most Clutch-listed software development companies charge [$24–$49 per hour](https://clutch.co/developers/pricing).
- **Small businesses report hiring difficulties:** In a 2024 survey, [33% reported hiring difficulties](https://www.guidantfinancial.com/2024-small-business-trends/) compared with previous years.
- **Technical skills remain a hiring concern:** [13% reported skill gaps](https://www.guidantfinancial.com/2024-small-business-trends/) among candidates as a hiring barrier in 2024.

### **1. Small businesses employ 62.3 million Americans**

Small businesses [employ 62.3 million Americans](https://advocacy.sba.gov/2026/02/03/frequently-asked-questions-about-small-business-2026/), representing 45.9% of U.S. private-sector employees, according to the Small Business Administration's February 2026 figures. When these businesses need custom software, they must decide whether to hire developers, work with an agency, buy existing tools, or build internally. Their staffing needs and software budgets vary widely. The employment figure shows the scale of small businesses but does not measure developer hiring demand.

### **2. About 95,300 software developer job openings are projected annually**

The Bureau of Labor Statistics projects approximately [95,300 annual job openings](https://www.onetonline.org/link/localtrends/15-1252.00) for U.S. software developers from 2025 to 2035. These openings reflect expected employment growth and the need to replace workers who leave the occupation. The forecast points to continued demand for developers, although it does not establish a shortage or predict hiring costs for individual small businesses. Actual hiring conditions also depend on location, specialization, experience, and employer requirements.

### **3. The U.S. has 36.2 million small businesses**

There were approximately [36.2 million small businesses](https://advocacy.sba.gov/2026/02/03/frequently-asked-questions-about-small-business-2026/) in the United States as of February 2026, representing 99.9% of all U.S. businesses. Not every small business needs custom software or a dedicated developer. However, businesses with specialized workflows may need applications that existing products do not fully support. Petony Transportes faced this situation before building its ERP on Hercules and avoiding a [$230,000 development quote](https://hercules.app/customers/petony-transportes).

### **4. The U.S. employed approximately 1.72 million software developers in 2025**

The United States had [1,717,800 employed software developers](https://www.onetonline.org/link/localtrends/15-1252.00) in 2025, according to BLS employment estimates. This figure covers the software developer occupation, not every person who writes code or works in technology. It provides a national picture of developer employment but does not measure how many developers are currently seeking jobs or available for small-business projects. Businesses must also consider the specific skills required for their applications.

### **5. Computer systems design firms employ 29% of U.S. software developers**

In 2025, [29% of software developers](https://www.bls.gov/ooh/computer-and-information-technology/software-developers.htm) in the United States worked in computer systems design and related services, according to the BLS. Other major employers included finance, software publishing, and manufacturing businesses. Developers work across many industries, so companies seeking technical talent may recruit from several sectors. This employment distribution does not establish the cost or difficulty of filling a particular role. Requirements and compensation can vary substantially between employers.

### **6. SlashData estimated 48.4 million developers worldwide in Q3 2025**

SlashData estimated [48.4 million developers worldwide](https://www.slashdata.co/research/developer-population) in Q3 2025. This estimate updates its earlier figure of 47.2 million at the beginning of 2025. Its earlier research showed annual developer population growth slowing from 21% in 2023–2024 to 10% in 2024–2025. Slower growth does not mean the developer population is shrinking or that hiring shortages will necessarily increase. These estimates measure global trends rather than U.S. hiring conditions.

### **7. Medium-sized businesses employ 14.5 million developers worldwide**

Businesses with 51 to 1,000 employees employed an estimated [14.5 million developers](https://www.slashdata.co/blog/global-developer-population-trends-2025-how-many-developers-are-there) globally in early 2025, according to SlashData. Combined with 7.5 million developers at large enterprises, these employer groups accounted for approximately 22 million professional developers. The figures use SlashData's global company-size categories, which are not the same as U.S. small-business classifications. They describe employment distribution rather than the number of developers available for hire.

### **8. Professional developers grew 70% from 2022 to 2025**

SlashData reported [70% professional developer growth](https://www.slashdata.co/blog/global-developer-population-trends-2025-how-many-developers-are-there), from 21.8 million in 2022 to 36.5 million in early 2025. Meanwhile, the research estimated that the amateur developer population declined by over 1 million in the preceding year. The shift shows that more people are participating in software development professionally, but it does not establish their salary expectations or whether small businesses can afford to hire them.

### **9. North America had approximately 9.5 million developers in early 2025**

SlashData estimated approximately [9.5 million developers](https://www.slashdata.co/blog/global-developer-population-trends-2025-how-many-developers-are-there) in North America at the beginning of 2025, similar to Western Europe. This shows how developer talent is distributed across major regional markets. The figure includes developers working in different industries and employment arrangements. It should not be interpreted as the number of developers available to U.S. small businesses. Hiring conditions depend on local demand, specialization, compensation, and access to remote workers.

### **10. Software developers earned a median $135,980 in May 2025**

U.S. software developers earned a [$135,980 median annual wage](https://www.bls.gov/ooh/computer-and-information-technology/software-developers.htm) in May 2025. The lowest-paid 10% earned less than $82,460, while the highest-paid 10% earned more than $214,670. These figures describe the overall wage distribution, not entry-level salary offers. For a five-person company, adding one full-time developer can materially increase payroll costs before benefits, recruiting expenses, and other employer costs.

### **11. Software developers on Upwork have hourly rates ranging from $10 to $100**

Upwork lists software developer rates of [$10–$100 per hour](https://www.upwork.com/hire/software-developers/cost/) on its freelance marketplace. Rates vary based on experience, specialization, location, and project requirements. Hiring a freelancer can reduce the commitment compared with a full-time employee, but the total project cost also depends on hours worked, testing, maintenance, and coordination. These marketplace rates should not be treated as a national average for U.S. salaried developers.

### **12. Most Clutch-listed software development companies charge $24–$49 per hour**

According to Clutch's August 2026 pricing guide, most software development companies listed on its platform [charge $24–$49 hourly](https://clutch.co/developers/pricing). These rates reflect companies represented on Clutch, including providers in different countries. They are agency billing rates, not employee wages. The total cost of custom software also depends on development time, project scope, integrations, testing, and ongoing support. Small businesses should compare complete project quotes rather than hourly rates alone.

### **13. Software publishers paid developers a median $164,550 in 2025**

Software developers working for software publishers earned a [$164,550 median annual wage](https://www.bls.gov/ooh/computer-and-information-technology/software-developers.htm) in May 2025. That was higher than the overall software developer median of $135,980, showing how compensation varies across industries. Businesses recruiting developers should consider the experience and specialization their projects require rather than assuming one national salary applies to every role. These figures describe employee wages and do not include the full cost of recruiting, benefits, or management.

### **14. 66% of small businesses planned to increase hiring in 2025**

LinkedIn reported that [66% planned more hiring](https://www.linkedin.com/business/talent/blog/talent-acquisition/6-hiring-best-practices-for-small-businesses) among surveyed U.S. small businesses in 2025 compared with 2024. The figure reflects hiring intentions across roles, not software-developer hiring specifically. For technical positions, small businesses still need to define requirements, set realistic compensation ranges, and assess candidates' skills. Whether a developer is the right hire depends on the company's software needs and budget.

### **15. 33% of small business owners found hiring somewhat or very difficult**

In Guidant's 2024 small-business survey, [22% reported some difficulty](https://www.guidantfinancial.com/2024-small-business-trends/) and [11% reported serious difficulty](https://www.guidantfinancial.com/2024-small-business-trends/) when hiring compared with previous years. Combined, [33% reported hiring difficulties](https://www.guidantfinancial.com/2024-small-business-trends/). Another 19% identified recruitment and retention as their biggest business challenge. These findings describe hiring across occupations, not developer recruitment alone, but they show why some owners may consider alternatives to adding permanent staff.

### **16. 20% cited lack of work experience as a hiring barrier**

In the same 2024 survey, [20% cited insufficient experience](https://www.guidantfinancial.com/2024-small-business-trends/) among candidates as a hiring barrier. The research covered general hiring rather than developer roles specifically. For a business developing mission-critical applications, relevant experience can matter when assessing technical candidates. The [Hercules app builder](https://hercules.app/) offers another approach by allowing people who understand their operations to build software through plain-language instructions, while still requiring testing and review.

### **17. 13% cited insufficient technical skills among job candidates**

Guidant's 2024 survey found that [13% cited technical gaps](https://www.guidantfinancial.com/2024-small-business-trends/) among candidates as a hiring challenge. Another [14% cited employer competition](https://www.guidantfinancial.com/2024-small-business-trends/). These findings describe hiring barriers across occupations rather than software development alone. They highlight the importance of defining the technical work a business needs before deciding whether to recruit a specialist, use an external provider, or adopt a no-code platform.

### **18. 49% of small businesses valued AI training in job candidates**

In the 2025 Small Business Index research, [49% favored AI training](https://www.metlife.com/business-and-brokers/small-business/sbi/hiring-experience) when assessing candidates, compared with 47% for candidates with bachelor's degrees. These were separate candidate attributes, not a direct choice between AI training and a degree. The finding suggests that AI skills matter to some employers, although it does not measure software-developer hiring or no-code adoption.

### **19. Nearly 9 million people used visual development tools in early 2025**

SlashData estimated that visual development tools had [nearly 9 million users](https://www.slashdata.co/blog/global-developer-population-trends-2025-how-many-developers-are-there) in early 2025, up from approximately 5 million in 2022. These tools include approaches associated with low-code and no-code development. The increase indicates broader participation in visual software building, although it does not measure how many small businesses use AI-powered app builders or how many developer hires these tools replace.

### **20. 65.9% of surveyed technologists used AI coding assistants or agents at work**

The 2026 Stack Overflow Developer Survey found that [65.9% of respondents](https://survey.stackoverflow.co/2026/ai/data/ai-select), from a sample of 17,464, used AI coding assistants or coding agents at work. This reflects the use of AI during software development, not the share of businesses building applications without developers. AI-assisted coding and no-code development are different approaches. Both can reduce some manual development work, but applications still need appropriate testing, security review, and maintenance.

## **How Hercules helps small businesses build software without hiring developers**

Hercules lets business owners build and update custom software through plain-language prompts without coordinating a traditional development team. It supports business applications such as CRMs, ERPs, and operational systems.

- **Reduce external development costs:** MMA Plumbing built a [46-module operating system](https://hercules.app/customers/mma-plumbing) after receiving agency quotes of at least €250,000. This is a customer-reported avoided quote, not a guaranteed saving.
- **Build for your workflows:** Helixon Law, a 17-lawyer military defense firm, built [more than 40 applications](https://hercules.app/customers/helixon-law) for its operations.
- **Move faster and iterate:** Business owners can describe new features and changes in plain language instead of waiting for an external development team.

Hercules supports authentication, databases, backend functions, email, hosting, [custom domain publishing](https://hercules.app/changelog/connect-existing-domains), and [mobile app publishing](https://hercules.app/docs/apps/mobile/get-started). Commerce payments require a third-party processor, currently Stripe.

The [Hercules commercial-use terms](https://hercules.app/legal/terms-of-service) require a Business or Enterprise plan. AI Credits and Cloud Credits are separate, and additional usage may increase costs. Review the [Hercules pricing page](https://hercules.app/pricing), test your application, and compare ongoing expenses before building.

## Frequently asked questions

### What are the biggest challenges small businesses face when hiring developers?

Small businesses face challenges related to cost, competition, and finding qualified candidates. U.S. software developers earned a [$135,980 median annual wage](https://www.bls.gov/ooh/computer-and-information-technology/software-developers.htm) in May 2025, excluding additional employer expenses. In a 2024 survey, 20% of small-business respondents cited insufficient work experience, while [13% cited skill gaps](https://www.guidantfinancial.com/2024-small-business-trends/) among hiring barriers. These findings cover general hiring rather than developer recruitment specifically.

### How can a no-code AI platform like Hercules reduce the need for developer hiring?

No-code platforms let business owners build software by describing what they need instead of writing code. The [Hercules app builder](https://hercules.app/) provides database, backend, authentication, and hosting capabilities. MMA Plumbing built a 46-module operating system after receiving agency quotes of at least [€250,000](https://hercules.app/customers/mma-plumbing). The approach works best when the person building understands the business requirements and can test the finished application.

### What types of applications can small businesses build with Hercules without hiring developers?

Small businesses have built CRMs, ERPs, customer portals, inventory systems, and operational dashboards on Hercules. Petony Transportes built a [complete logistics ERP](https://hercules.app/customers/petony-transportes). Helixon Law built[ more than 40 applications](https://hercules.app/customers/helixon-law), including proposal automation. Kingdom Construction replaced [four software vendors](https://hercules.app/customers/kingdom-texas) with a unified operations system. These customer examples show Hercules being used for everyday business operations, not only prototypes.

### Is a freelance developer a cost-effective alternative to a full-time hire for small businesses?

Freelance developers can reduce the commitment compared with full-time hires, but hourly rates and project management overhead still add up. Upwork lists software developer rates of [$10–$100 per hour](https://www.upwork.com/hire/software-developers/cost/) on its marketplace. Small businesses may spend significant time coordinating with freelancers. No-code platforms offer a different tradeoff: you may reduce external development costs, but you still need time and budget for building, testing, hosting, and maintenance.

### What should small businesses check before using Hercules for business software?

Hercules supports complete business applications with frontend, backend, database, authentication, and hosting capabilities. Imjomat used Hercules to build a website and an internal operating system that reportedly saves [2,000 team hours monthly](https://hercules.app/customers/imjomat). Before building, check the [Hercules product documentation](https://hercules.app/docs), [Hercules pricing page](https://hercules.app/pricing), and [Hercules commercial-use terms](https://hercules.app/legal/terms-of-service). Commercial use requires a Business or Enterprise plan, and costs depend on subscriptions, usage, testing, and maintenance.

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