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Small businesses are a foundational part of the U.S. economy. They account for the vast majority of employer firms, support tens of millions of jobs, and contribute significantly to payroll, GDP, and innovation. This page compiles verified small business statistics and facts focused on the United States, with clear sourcing and dates.
Where possible, the figures below use official U.S. government data (including the U.S. Small Business Administration Office of Advocacy and U.S. Census Bureau-based summaries) and are labeled with the most recent source year available.
Small Business Statistics (U.S.)
Quick Answer: What percentage of U.S. businesses are small businesses?
Small businesses make up 99.9% of all U.S. businesses. The SBA Office of Advocacy reports 34,752,434 small businesses in the United States, compared with 19,688 large businesses (FAQ published July 2024, using cited federal data sources).
Key Small Business Metrics (U.S.)
| Metric | Figure | Source Year |
|---|---|---|
| Number of U.S. small businesses | 34,752,434 | FAQ published 2024 |
| Share of all U.S. businesses that are small businesses | 99.9% | 2024 U.S. Small Business Profile |
| Small business share of private-sector employees | 45.9% | 2024 U.S. Small Business Profile |
| Small business share of private-sector payroll | 52.3% | 2024 U.S. Small Business Profile |
| Small business share of U.S. GDP | 43.5% | 2024 U.S. Small Business Profile |
| Small employer firms | 6,274,916 | FAQ published 2024 |
| Small nonemployer firms | 28,477,518 | FAQ published 2024 |
| Share of small businesses that are nonemployers | 81.9% | FAQ published 2024 |
| Average 2-year survival rate (new employer establishments) | 67.9% | 1994–2021 average (reported 2024) |
| Average 5-year survival rate (new employer establishments) | 49.2% | 1994–2021 average (reported 2024) |
| Establishments opened (first time) | 1.4 million | 2022 |
| Establishments closed permanently | ~1.2 million | 2022 |
| Businesses using AI | 4.6% | Mar 2023–Feb 2024 period |
Small Business Facts and Figures
Percentage of all U.S. businesses that are small businesses:
99.9% (SBA Office of Advocacy, 2024 U.S. totals summary)
Number of U.S. small businesses:
34,752,434 (FAQ published July 2024)
Number of small businesses with no employees (nonemployer firms):
28,477,518 firms (81.9% of small businesses) (FAQ published July 2024)
Number of small businesses with paid employees (small employer firms):
6,274,916 firms (18.1% of small businesses) (FAQ published July 2024)
Number of large businesses in the U.S.:
19,688 (FAQ published July 2024)
Small business share of private-sector employment in the U.S.:
45.9% (2024 U.S. Small Business Profile)
Small business share of private-sector payroll in the U.S.:
52.3% (2024 U.S. Small Business Profile)
Small business contribution to U.S. GDP:
43.5% (2024 U.S. Small Business Profile)
Average 2-year survival rate for new employer establishments (U.S.):
67.9% (average across 1994–2021, reported in SBA FAQ 2024)
Average 5-year survival rate for new employer establishments (U.S.):
49.2% (average across 1994–2021, reported in SBA FAQ 2024)
Average 10-year survival rate for new employer establishments (U.S.):
33.8% (average across 1994–2021, reported in SBA FAQ 2024)
Average 15-year survival rate for new employer establishments (U.S.):
25.6% (average across 1994–2021, reported in SBA FAQ 2024)
Number of business establishments that opened for the first time (U.S.):
1.4 million (2022, reported in SBA FAQ 2024)
Number of business establishments that closed permanently (U.S.):
About 1.2 million (2022, reported in SBA FAQ 2024)
Share of business establishments that were startups:
15.7% (2022, compared with 12.5% in 2019; reported in SBA FAQ 2024)
Average number of employees at a small employer firm:
11 employees (2021 average, reported in SBA FAQ 2024)
Average number of employees at a new firm (under 2 years old):
6 employees (2021 average, reported in SBA FAQ 2024)
Average number of employees at firms older than 20 years:
58 employees (2021 average, reported in SBA FAQ 2024)
Women-owned employer firms in the U.S.:
1.3 million (21.6% of all employer firms, 2021; reported in SBA FAQ 2024)
Women-owned nonemployer firms in the U.S.:
About 12.5 million (43.0% of all nonemployer firms, 2019; reported in SBA FAQ 2024)
Minority-owned employer firms in the U.S.:
About 1.2 million (20.9% of employer firms, 2021; reported in SBA FAQ 2024)
Veteran-owned employer firms in the U.S.:
About 304,823 (5.2% of employer firms, 2021; reported in SBA FAQ 2024)
Immigrant-owned employer firms in the U.S.:
18.5% of employer firms (2021; reported in SBA FAQ 2024)
Family-owned employer firms in the U.S.:
27.3% (2021; reported in SBA FAQ 2024)
Share of workers in the U.S. who were self-employed:
9.7% (2023; reported in SBA FAQ 2024)
Share of all businesses using AI:
4.6% (March 2023 to February 2024 period; reported in SBA FAQ 2024)
Small business share of exporters (U.S.):
34.7% of identified exporters (2022, 271,705 small business exporters; 2024 U.S. Small Business Profile)
Small business share of federal small business market share in patent applications:
39.4% (2022; 2024 U.S. Small Business Profile)
Number of small businesses financed by SBA-backed lending (7(a), 504, Microloan):
1.1 million businesses receiving $24.2 billion in financing (2023; 2024 U.S. Small Business Profile)
What Counts as a Small Business?
In the U.S., “small business” is not a single one-size-fits-all threshold. The SBA uses size standards that can vary by industry, often based on employee count or average annual receipts. Many widely cited summaries use the common benchmark of firms with fewer than 500 employees, but the official standard can differ depending on the NAICS industry category.
Small Business Trends and Takeaways
- Small businesses dominate by count: They make up nearly all U.S. businesses by number.
- Nonemployers are the majority: Most U.S. small businesses do not have employees, which is important when comparing “number of firms” vs. “number of jobs.”
- They remain economically significant: Small businesses contribute materially to employment, payroll, and GDP.
- Business churn is normal: New business formation and closures both occur at large scale each year.
- Ownership is diverse and changing: Women-, minority-, veteran-, and immigrant-owned firms make up meaningful shares of the U.S. business base.
FAQ: Small Business Statistics
How many small businesses are there in the U.S.?
The SBA Office of Advocacy reports 34,752,434 small businesses in the United States (FAQ published July 2024).
What percentage of U.S. businesses are small businesses?
About 99.9% of U.S. businesses are classified as small businesses in SBA Office of Advocacy summaries.
What percentage of small businesses have no employees?
According to the SBA Office of Advocacy FAQ, 81.9% of U.S. small businesses are nonemployer firms.
How much do small businesses contribute to the U.S. economy?
In the SBA Office of Advocacy’s 2024 U.S. Small Business Profile, small businesses account for 45.9% of private-sector employment, 52.3% of private-sector payroll, and 43.5% of GDP.
What is the 5-year survival rate for new businesses?
The SBA Office of Advocacy FAQ reports an average 5-year survival rate of 49.2% for new employer establishments (1994–2021 average).
Sources and References
- U.S. Small Business Administration Office of Advocacy — Frequently Asked Questions About Small Business (July 2024)
- U.S. Small Business Administration Office of Advocacy — 2024 Small Business Economic Profile: United States
- SBA Office of Advocacy (official site)
Small business statistics can vary depending on the source, year, and definition used (for example, employer firms vs. nonemployer firms, or industry-specific SBA size standards). For that reason, each figure on this page includes a source and date context.
