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Facts & Data on Small Business and Entrepreneurship
American Business is Overwhelmingly Small Business
Based on data from the U.S. Census Bureau, there were 6.1 million employer firms in the United States in 2018 (latest data):
● Firms with fewer than 500 employees accounted for 99.7 percent of those businesses.
● Firms with fewer than 100 employees accounted for 98.1 percent.
● Firms with fewer than 20 employees made up 89.1 percent.
● Firms with fewer than 10 employees accounted for 78.4 percent.
Add in the number of nonemployer businesses – there were 26.5 million in 2018 (latest data) – then the share of U.S. businesses with fewer than 20 workers, for example, increases to 98.0 percent, and the share with fewer than 10 employees registers 96.0 percent.
C-Corps:
Among employer C corporations in 2017 (latest data):
● 72.5 percent had fewer than 10 employees
● 84.6 percent had fewer than 20 employees
● 96.2 percent fewer than 100
● 98.9 percent had less than 500 workers
If nonemployer corporations (latest data 2018) are added in, then those with fewer than 20 workers come in at 89.2 percent of all C corporations, and the share with fewer than 10 employees registers 80.7 percent
Bulk of Job Creation Comes from Small Business
According to the SBA’s Office of Advocacy:
● “Small businesses have accounted for 65.1% of net new job creation since 2000.
● “From 2000 to 2019, small businesses created 10.5 million net new jobs while large businesses created 5.6 million.”
Also, as noted in SBA’s “2020 Small Business Profile”:
● Small businesses created 1.6 million net new jobs in 2019, with firms employing fewer than 20 workers generating 1.1 million net new jobs.
● And small businesses employ 47.1 percent of private-sector employees.
Small Business Share of Employment
According to data from the Census Bureau’s Annual Survey of Entrepreneurs:
● Employer firms with fewer than 500 workers employed 46.8 percent of private sector payrolls in 2016.
● Employer firms with fewer than 100 workers employed 33.4 percent.
● Employer firms with less than 20 workers employed 16.8 percent.
Based on data from the U.S. Census Bureau, there were 6.1 million employer firms in the United States in 2018 (latest data):
● Firms with fewer than 500 employees accounted for 99.7 percent of those businesses.
● Firms with fewer than 100 employees accounted for 98.1 percent.
● Firms with fewer than 20 employees made up 89.1 percent.
● Firms with fewer than 10 employees accounted for 78.4 percent.
Add in the number of nonemployer businesses – there were 26.5 million in 2018 (latest data) – then the share of U.S. businesses with fewer than 20 workers, for example, increases to 98.0 percent, and the share with fewer than 10 employees registers 96.0 percent.
C-Corps:
Among employer C corporations in 2017 (latest data):
● 72.5 percent had fewer than 10 employees
● 84.6 percent had fewer than 20 employees
● 96.2 percent fewer than 100
● 98.9 percent had less than 500 workers
If nonemployer corporations (latest data 2018) are added in, then those with fewer than 20 workers come in at 89.2 percent of all C corporations, and the share with fewer than 10 employees registers 80.7 percent
Bulk of Job Creation Comes from Small Business
According to the SBA’s Office of Advocacy:
● “Small businesses have accounted for 65.1% of net new job creation since 2000.
● “From 2000 to 2019, small businesses created 10.5 million net new jobs while large businesses created 5.6 million.”
Also, as noted in SBA’s “2020 Small Business Profile”:
● Small businesses created 1.6 million net new jobs in 2019, with firms employing fewer than 20 workers generating 1.1 million net new jobs.
● And small businesses employ 47.1 percent of private-sector employees.
Small Business Share of Employment
According to data from the Census Bureau’s Annual Survey of Entrepreneurs:
● Employer firms with fewer than 500 workers employed 46.8 percent of private sector payrolls in 2016.
● Employer firms with fewer than 100 workers employed 33.4 percent.
● Employer firms with less than 20 workers employed 16.8 percent.