Small Business Statistics You Need to Know
Small businesses are no small part of the US economy. According to recent census data, there are over 30 million small businesses in the US responsible for creating just over half of the jobs in the country. Within these millions of businesses, there lies an immense value, generating an estimated $3.3 trillion dollars in annual revenue. With such an impressive figure, it’s important to understand the incredible impact of small businesses, and the potential for new businesses to contribute substantially to the global economy. With that in mind, here’s a look at some small business statistics you need to know.
Small Business Employment
When it comes to investment and job creation, small businesses should not be underestimated. According to the Small Business Administration (SBA), small businesses employ nearly 50 percent of all American workers. These jobs cover nearly all industry sectors and provide essential services to the important markets of the United States.
Small Business Growth
Just like any other business, the success of small businesses depends on the ability to grow. Year over year, businesses employ many tactics ranging from hiring talented professionals to marketing and advertising to create new business opportunities. From a nationwide standpoint, small businesses see a lot of success. According to the 2017/2018 Global Entrepreneur Monitor report, small businesses are responsible for a total of 67 percent of all new jobs created.
Revenue Generation
When small businesses are successful, it is a testament to the quality of services, products, and innovations being brought to the market. In the US, this success is rewarded in the form of enormous revenue. According to the US Census Bureau’s Survey of Business Owners, the private sector businesses generated a total of $3.3 trillion in revenue in 2019.
Industry-Specific Stats
The small business impact goes further than just jobs and revenue. Businesses in many industries have specific needs that impact how they operate, how they market, and how competitive they are in the industry. Here are a few industry specific stats to consider.
Retail
Whether it’s a large box store or a small store on Main Street, retail has long been one of America’s premier industries. As of 2017, there were 1.2 million firms in the retail sector alone, generating $3.3 trillion in sales. This number has only increased since then.
Healthcare
With millions of American’s depending on quality healthcare, it’s no surprise that so many small businesses in the industry have been started. According to the Small Business Trends State of Small Businesses report, there are an estimated 3.2 million healthcare companies that generate an estimated $356.8 billion in annual revenue.
Manufacturing
Manufacturing is an essential component of many industries and an incredible provider of products and services. Manufacturing also happens to be one of the bigger industries for small businesses, with an estimated 1.15 million firms in the sector providing 330,000 jobs.
Technology
As the digital age has fully arrived, technology has become an essential component of modern business success. In 2015, there were an estimated 6.9 million companies in the “Information and Communications Technology” sector made up of small and medium-sized businesses. Many of these are software companies, responsible for a combined $2.2 trillion in revenue.
Small Business Statistics in the US
As part of the broader US economy, small businesses have a massive impact on the national level. Here are some stats from the US Small Business Administration that reflect this on a grand scale.
Small businesses make up:
• 99.9 percent of all employer firms
• 92.9 percent of all non-employer firms
• 24.8 percent of all export values
• 34.1 percent of all high technology exports
• 55.3 percent of all, exporter value
• 45.9 percent of all private sector payroll
In addition to these national stats, the US Small Business Administration also estimates that two-thirds of all new jobs generated in the US come from small businesses.
International Small Business Statistics
Given the right conditions, small businesses have the opportunity to reach across national borders and provide products and services all around the world. According to recent estimates, there are an estimated 466 million small and medium business (SMB) enterprises around the globe.
Small businesses have an immense impact on both local and global economies. From job creation and revenue generation to the niche skills and services small businesses offer communities, understanding the stats and figures from small businesses provides important insight into their potential and current abilities. The data proves that small businesses are major contributors to the US economy and global market, as can be seen with big names from both Apple and Amazon making their origins from small business beginnings. With the right support, small businesses have the opportunity to take their part in the global economy to the next level.
