How big is small business in America? What percentage of employees work for small biz? How many small businesses are there and who owns them? How many don’t survive? If you’re anything like me, you find these questions intriguing. It goes beyond staying informed—it’s an article of pride. I’ve been involved in the management of small businesses for more than 30 years. Before that, I worked for two multi-million dollar national firms. I much prefer the freedom, creative environment, and ad-hoc structure of small business. It’s with a sense of pride I share these numbers.
How Does Small Business Impact Employment?
- 64 percent of net new private-sector jobs
- 49.2 percent of private-sector employment
- 42.9 percent of private-sector payroll
- 46 percent of private-sector output
- 43 percent of high-tech employment
Who Owns Small Businesses?
According to the 2010 census, there were 27.9 million American small businesses. Of those, 7.8 million or 28 %, were owned by women. Asian Americans came in at 1.6 million and African-Americans at 1.9 million. Hispanic-American owned 2.3 million, while military veterans accounted for 3.7 million US small businesses.
How Many Small Businesses don’t Survive?
In 2011 518,500 small businesses failed, however 680,716 opened for a net gain of more than 100,000 small businesses. In that same year 48,000 small businesses with employees filed bankruptcy, but that number was down over 50% compared to the two previous years.
What is the Tax Rate for Small Biz?
|Non-farm sole proprietor||13.3|
How does Small Business Affect the Economy?
- Since 1970 small businesses have provided 66% of the new jobs in America.
- Franchised small businesses in the U.S. produce 40% of all retail sales and employ more than eight million workers.
- Small business lease more than 30 % of the available commercial space in the USA, which is more than 20 billion square feet.
And still more…
Small Businesses account for…
- 39 percent of the GNP.
- 21 percent of manufactured U.S. exports.
- 44 percent of all sales in America.
- The employment of 54.4 million people (57.3 percent of all private sector employment)
- Over 50% of 20th Century innovations, such as zippers, helicopters, personal computers, and the artificial heart valve.
Small business isn’t small—it’s huge. Without a healthy small business environment, our country would slow or even falter. Small biz spurs the economy, creates jobs, and is the incubator for innovation in America. When you support small business: local shops, suppliers, and providers—you support your community and the country.