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100+ Statistics On Small Business In The U.S.

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Lacey Jackson-Matsushima
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Small businesses in the US statistics offer a picture of a thriving economic environment, with 6,081,544, or 99% of all businesses considered small, with fewer than 500 employees. States with higher populations have higher levels of small business employment and payroll.

However, of those 99%, small businesses only account for 46% of employment. Moreover, annual payroll for small businesses is only ⅓ higher than the 504 large corporations with over 20,000 employees.

Key Takeaways

  • Small businesses with fewer than 500 employees account for 99% of total registered businesses in America.

  • Enterprises with fewer than 500 employees account for 46% of the employment across the United States.

  • California is the biggest employer via small businesses, with 15,516,824 people working for enterprises with fewer than 500 people while Wyoming has the fewest, employing only 207,016 people in small businesses.

Number Of Small Businesses In The U.S.

There are impressively high small business in the US statistics, with small businesses representing 99% of all registered companies across the United States.

  • 6,102,412: The United States had 6,102,412 total firms registered.
  • 6,081,544: The United States has 6,081,544 small businesses with fewer than 500 employees.
  • 99%: Small businesses with fewer than 500 employees account for 99% of total registered businesses in America.
  • 6,961: There are 6,961 registered businesses in the US with between 500-749 employees.
  • 3,387: There are 3,387 businesses in the US with between 750-999 employees.
  • 3,387: There are 3,387 businesses with between 1,000-1,499 employees in the US.
  • 1,715: The United States has 1,715 businesses with between 1,500 and 1,999 employees.
  • 1,072: There are 1,072 businesses in the US with between 2,000 and 2,499 employees.
  • 2,105: There are 2,105 businesses in the US with between 2,500-4,999 employees.
  • 1,108: The United States has 1,108 businesses with between 5,000-9,999 employees.
  • 582: There are only 582 businesses with between 10,000 and 19,999 employees in the US.
  • 540: There are only 540 businesses with over 20,000 employees in the US.

Source: Census

Number Of People Employed By Small Businesses

According to census data, the total employment from all enterprises across the United States is 132,989,428 people. Small businesses account for nearly half of employment across the United States, though large enterprises, with more than 20,000 employees represent the next biggest category of employment at 23% of the US.

  • 61,693,908: Enterprises with fewer than 500 employees employ a total of 61,693,908 people.
  • 46%: Enterprises with fewer than 500 employees account for 46% of the employment across the United States.
  • 4,228,530: Enterprises with between 500-749 employees employ a total of 4,228,530 people.
  • 2,921,096: Enterprises with between 750-999 employees employ a total of 2,921,096 people.
  • 4,138,524: Enterprises with between 1,000-1,499 employees employ a total of 4,138,524 people.
  • 2,968,524: Enterprises with between 1,500-1,999 employees employ a total of 2,968,524 people.
  • 2,389,866: Enterprises with between 2,000-2,499 employees employ a total of 2,389,866 people.
  • 7,321,778: Enterprises with between 2,500-4,999 employees employ a total of 7,321,778 people.
  • 7,669,204: Enterprises with between 5,000-9,999 employees employ a total of 7,669,204 people.
  • 8,145,418: Enterprises with between 10,000-19,999 employees employ a total of 8,145,418 people.
  • 31,512,580: Enterprises with 20,000 or more employees employ a total of 31,512,580 people.
  • 23%: Enterprises with more than 20,000 employees make up 23% of the workforce.

Source: Census

Wyoming, Vermont, and Alaska have the three lowest employment levels within small businesses while California, Texas, and Florida have the largest employment levels for small businesses.

  • 15,516,824: California is the biggest employer via small businesses, with 15,516,824 people working for enterprises with fewer than 500 people.
  • 11,104,054: Texas employs the second highest number of individuals in small businesses, with 11,104,054 people.
  • 8,860,042: Florida is the third largest employer via small businesses, with 8,860,042 people working for small businesses throughout the state.
  • 8,597,216: New York employs 8,597,216 people through small businesses.

Source: Census

The table below provides data on the total number of employees by all of the small businesses in each state (fewer than 500 employees):

State Total employed by total small businesses
Alabama 1,758,609
Alaska 264,971
Arizona 2,614,641
Arkansas 1,053,453
California 15,516,824
Colorado 2,473,192
Connecticut 1,538,341
Delaware 413,410
Florida 8,860,042
Georgia 4,040,559
Hawai’i 553,206
Idaho 616,778
Illinois 5,530,388
Indiana 2,834,056
Iowa 1,380,747
Kansas 1,209,318
Kentucky 1,666,637
Louisiana 1,719,561
Maine 522,191
Maryland 2,380,865
Massachusetts 3,386,372
Michigan 3,978,872
Minnesota 2,279,420
Mississippi 958,126
Missouri 2,547,310
Montana 375,176
Nebraska 856,242
Nevada 1,261,577
New Hampshire 620,164
New Jersey 3,805,357
New Mexico 644,537
New York 8,597,216
North Carolina 3,932,620
North Dakota 353,333
Ohio 4,916,956
Oklahoma 1,404,725
Oregon 1,643,425
Pennsylvania 5,557,885
Rhode Island 444,948
South Carolina 1,949,406
South Dakota 358,943
Tennessee 2,724,545
Texas 11,104,054
Utah 1,373,876
Vermont 261,196
Virginia 3,455,993
Washington 2,898,378
West Virginia 554,433
Wisconsin 2,610,712
Wyoming 207,016

Small Business Statistics Split By State

The information below provides details on the size and quantity of small businesses across each state:

Alabama

Size Number of Businesses
Total Small Businesses 74,669
<5 employees 40,111
5-9 employees 13,439
10-19 employees 8,548
<20 employees 62,098
20-99 employees 7,750
100-499 employees 2,149
<500 employees 71,997
500+ employees 2,672

Alaska

Size Number of Businesses
Total Small Businesses 17,365
<5 employees 10,398
5-9 employees 2,965
10-19 employees 1,744
<20 employees 15,107
20-99 employees 1,274
100-499 employees 310
<500 employees 16,691
500+ employees 674

Arizona

Size Number of Businesses
Total Small Businesses 113,832
<5 employees 68,617
5-9 employees 17,012
10-19 employees 11,282
<20 employees 96,911
20-99 employees 10,603
100-499 employees 2,889
<500 employees 110,403
500+ employees 3,429

Arkansas

Size Number of Businesses
Total Small Businesses 51,237
<5 employees 29,264
5-9 employees 8,802
10-19 employees 5,242
<20 employees 43,308
20-99 employees 4,798
100-499 employees 1,215
<500 employees 49,321
500+ employees 1,916

California

Size Number of Businesses
Total Small Businesses 790,509
<5 employees 494,046
5-9 employees 126,960
10-19 employees 80,853
<20 employees 701,859
20-99 employees 68,103
100-499 employees 13,983
<500 employees 783,945
500+ employees 6,564

Colorado

Size Number of Businesses
Total Small Businesses 144,185
<5 employees 92,255
5-9 employees 20,485
10-19 employees 13,298
<20 employees 126,038
20-99 employees 11,648
100-499 employees 2,976
<500 employees 140,662
500+ employees 3,523

Connecticut

Size Number of Businesses
Total Small Businesses 70,430
<5 employees 38,918
5-9 employees 12,405
10-19 employees 7,826
<20 employees 59,149
20-99 employees 7,096
100-499 employees 1,873
<500 employees 68,118
500+ employees 2,312

Delaware

Size Number of Businesses
Total Small Businesses 21,163
<5 employees 11,732
5-9 employees 3,123
10-19 employees 2,162
<20 employees 17,017
20-99 employees 2,136
100-499 employees 615
<500 employees 19,768
500+ employees 1,395

Florida

Size Number of Businesses
Total Small Businesses 470,502
<5 employees 324,060
5-9 employees 64,037
10-19 employees 38,176
<20 employees 426,273
20-99 employees 31,997
100-499 employees 7,224
<500 employees 465,494
500+ employees 5,008

Georgia

Size Number of Businesses
Total Small Businesses 185,938
<5 employees 114,770
5-9 employees 28,190
10-19 employees 17,565
<20 employees 160,525
20-99 employees 16,553
100-499 employees 4,458
<500 employees 181,536
500+ employees 4,402

Hawaii

Size Number of Businesses
Total Small Businesses 25,714
<5 employees 14,332
5-9 employees 4,455
10-19 employees 2,704
<20 employees 21,491
20-99 employees 2,497
100-499 employees 689
<500 employees 24,677
500+ employees 1,037

Idaho

Size Number of Businesses
Total Small Businesses 42,625
<5 employees 26,037
5-9 employees 6,550
10-19 employees 4,227
<20 employees 36,814
20-99 employees 3,475
100-499 employees 885
<500 employees 41,174
500+ employees 1,451

Illinois

Size Number of Businesses
Total Small Businesses 256,027
<5 employees 159,274
5-9 employees 38,219
10-19 employees 24,232
<20 employees 221,725
20-99 employees 23,209
100-499 employees 6,173
<500 employees 251,107
500+ employees 4,920

Indiana

Size Number of Businesses
Total Small Businesses 109,979
<5 employees 59,928
5-9 employees 19,072
10-19 employees 12,553
<20 employees 91,553
20-99 employees 11,899
100-499 employees 3,136
<500 employees 106,588
500+ employees 3,391

Iowa

Size Number of Businesses
Total Small Businesses 63,220
<5 employees 36,792
5-9 employees 10,248
10-19 employees 6,678
<20 employees 53,718
20-99 employees 5,861
100-499 employees 1,613
<500 employees 61,192
500+ employees 2,028

Kansas

Size Number of Businesses
Total Small Businesses 57,389
<5 employees 32,387
5-9 employees 9,466
10-19 employees 6,028
<20 employees 47,881
20-99 employees 5,593
100-499 employees 1,627
<500 employees 55,101
500+ employees 2,288

Kentucky

Size Number of Businesses
Total Small Businesses 67,340
<5 employees 36,448
5-9 employees 11,788
10-19 employees 7,617
<20 employees 55,853
20-99 employees 6,961
100-499 employees 1,909
<500 employees 64,723
500+ employees 2,617

Louisiana

Size Number of Businesses
Total Small Businesses 81,489
<5 employees 44,593
5-9 employees 14,410
10-19 employees 9,220
<20 employees 68,223
20-99 employees 8,754
100-499 employees 2,158
<500 employees 79,135
500+ employees 2,354

Maine

Size Number of Businesses
Total Small Businesses 34,469
<5 employees 21,252
5-9 employees 5,367
10-19 employees 3,322
<20 employees 29,941
20-99 employees 2,726
100-499 employees 633
<500 employees 33,300
500+ employees 1,169

Maryland

Size Number of Businesses
Total Small Businesses 110,241
<5 employees 62,840
5-9 employees 17,896
10-19 employees 12,049
<20 employees 92,785
20-99 employees 11,491
100-499 employees 2,936
<500 employees 107,212
500+ employees 3,029

Massachusetts

Size Number of Businesses
Total Small Businesses 145,328
<5 employees 84,149
5-9 employees 24,395
10-19 employees 15,478
<20 employees 124,022
20-99 employees 14,237
100-499 employees 3,680
<500 employees 141,939
500+ employees 3,389

Michigan

Size Number of Businesses
Total Small Businesses 173,837
<5 employees 98,192
5-9 employees 30,449
10-19 employees 19,794
<20 employees 148,435
20-99 employees 17,920
100-499 employees 4,050
<500 employees 170,405
500+ employees 3,432

Minnesota

Size Number of Businesses
Total Small Businesses 119,278
<5 employees 70,927
5-9 employees 18,207
10-19 employees 12,225
<20 employees 101,359
20-99 employees 11,995
100-499 employees 2,963
<500 employees 116,317
500+ employees 2,961

Mississippi

Size Number of Businesses
Total Small Businesses 44,293
<5 employees 24,147
5-9 employees 8,057
10-19 employees 4,857
<20 employees 37,061
20-99 employees 4,222
100-499 employees 1,128
<500 employees 42,411
500+ employees 1,882

Missouri

Size Number of Businesses
Total Small Businesses 116,620
<5 employees 69,567
5-9 employees 18,043
10-19 employees 11,716
<20 employees 99,326
20-99 employees 11,375
100-499 employees 2,774
<500 employees 113,475
500+ employees 3,145

Montana

Size Number of Businesses
Total Small Businesses 33,556
<5 employees 21,334
5-9 employees 5,282
10-19 employees 3,130
<20 employees 29,746
20-99 employees 2,329
100-499 employees 539
<500 employees 32,614
500+ employees 942

Nebraska

Size Number of Businesses
Total Small Businesses 43,756
<5 employees 25,870
5-9 employees 6,769
10-19 employees 4,372
<20 employees 37,011
20-99 employees 4,081
100-499 employees 1,025
<500 employees 42,117
500+ employees 1,639

Nevada

Size Number of Businesses
Total Small Businesses 54,760
<5 employees 31,213
5-9 employees 8,291
10-19 employees 5,737
<20 employees 45,241
20-99 employees 5,383
100-499 employees 1,744
<500 employees 52,368
500+ employees 2,392

New Hampshire

Size Number of Businesses
Total Small Businesses 30,973
<5 employees 16,641
5-9 employees 5,462
10-19 employees 3,538
<20 employees 25,641
20-99 employees 3,101
100-499 employees 802
<500 employees 29,544
500+ employees 1,429

New Jersey

Size Number of Businesses
Total Small Businesses 194,740
<5 employees 117,531
5-9 employees 32,078
10-19 employees 19,770
<20 employees 169,379
20-99 employees 17,764
100-499 employees 4,110
<500 employees 191,253
500+ employees 3,487

New Mexico

Size Number of Businesses
Total Small Businesses 34,448
<5 employees 18,858
5-9 employees 5,636
10-19 employees 3,837
<20 employees 28,331
20-99 employees 3,478
100-499 employees 967
<500 employees 32,776
500+ employees 1,672

New York

Size Number of Businesses
Total Small Businesses 466,128
<5 employees 304,015
5-9 employees 71,091
10-19 employees 41,988
<20 employees 417,094
20-99 employees 35,907
100-499 employees 8,205
<500 employees 461,206
500+ employees 4,922

North Carolina

Size Number of Businesses
Total Small Businesses 182,451
<5 employees 108,386
5-9 employees 29,816
10-19 employees 18,962
<20 employees 157,164
20-99 employees 17,408
100-499 employees 3,915
<500 employees 178,487
500+ employees 3,964

North Dakota

Size Number of Businesses
Total Small Businesses 19,812
<5 employees 10,983
5-9 employees 3,225
10-19 employees 2,170
<20 employees 16,378
20-99 employees 1,913
100-499 employees 576
<500 employees 18,867
500+ employees 945

Ohio

Size Number of Businesses
Total Small Businesses 183,281
<5 employees 97,664
5-9 employees 33,037
10-19 employees 22,303
<20 employees 153,004
20-99 employees 20,946
100-499 employees 5,101
<500 employees 179,051
500+ employees 4,230

Oklahoma

Size Number of Businesses
Total Small Businesses 73,321
<5 employees 43,127
5-9 employees 11,978
10-19 employees 7,319
<20 employees 62,424
20-99 employees 6,777
100-499 employees 1,782
<500 employees 70,983
500+ employees 2,338

Oregon

Size Number of Businesses
Total Small Businesses 96,968
<5 employees 56,630
5-9 employees 16,799
10-19 employees 10,559
<20 employees 83,988
20-99 employees 8,566
100-499 employees 2,014
<500 employees 94,568
500+ employees 2,400

Pennsylvania

Size Number of Businesses
Total Small Businesses 230,948
<5 employees 129,608
5-9 employees 41,041
10-19 employees 25,920
<20 employees 196,569
20-99 employees 24,266
100-499 employees 5,676
<500 employees 226,511
500+ employees 4,437

Rhode Island

Size Number of Businesses
Total Small Businesses 24,430
<5 employees 13,919
5-9 employees 3,971
10-19 employees 2,521
<20 employees 20,411
20-99 employees 2,269
100-499 employees 564
<500 employees 23,244
500+ employees 1,186

South Carolina

Size Number of Businesses
Total Small Businesses 85,633
<5 employees 49,079
5-9 employees 14,272
10-19 employees 9,052
<20 employees 72,403
20-99 employees 8,236
100-499 employees 2,181
<500 employees 82,820
500+ employees 2,813

South Dakota

Size Number of Businesses
Total Small Businesses 22,426
<5 employees 13,081
5-9 employees 3,619
10-19 employees 2,269
<20 employees 18,969
20-99 employees 1,951
100-499 employees 553
<500 employees 21,473
500+ employees 953

Tennessee

Size Number of Businesses
Total Small Businesses 100,734
<5 employees 53,034
5-9 employees 18,101
10-19 employees 11,723
<20 employees 82,858
20-99 employees 11,314
100-499 employees 3,057
<500 employees 97,229
500+ employees 3,505

Texas

Size Number of Businesses
Total Small Businesses 458,588
<5 employees 268,586
5-9 employees 77,203
10-19 employees 49,770
<20 employees 395,559
20-99 employees 45,865
100-499 employees 10,815
<500 employees 452,239
500+ employees 6,349

Utah

Size Number of Businesses
Total Small Businesses 70,562
<5 employees 44,412
5-9 employees 9,641
10-19 employees 6,763
<20 employees 60,816
20-99 employees 6,036
100-499 employees 1,519
<500 employees 68,371
500+ employees 2,191

Vermont

Size Number of Businesses
Total Small Businesses 17,745
<5 employees 10,253
5-9 employees 2,936
10-19 employees 1,885
<20 employees 15,074
20-99 employees 1,524
100-499 employees 364
<500 employees 16,962
500+ employees 783

Virginia

Size Number of Businesses
Total Small Businesses 154,980
<5 employees 90,102
5-9 employees 25,337
10-19 employees 16,700
<20 employees 132,139
20-99 employees 15,347
100-499 employees 3,797
<500 employees 151,283
500+ employees 3,697

Washington

Size Number of Businesses
Total Small Businesses 159,795
<5 employees 96,436
5-9 employees 26,635
10-19 employees 16,481
<20 employees 139,552
20-99 employees 13,737
100-499 employees 3,286
<500 employees 156,575
500+ employees 3,220

West Virginia

Size Number of Businesses
Total Small Businesses 26,054
<5 employees 13,637
5-9 employees 4,818
10-19 employees 2,943
<20 employees 21,398
20-99 employees 2,569
100-499 employees 750
<500 employees 24,717
500+ employees 1,337

Washington

Size Number of Businesses
Total Small Businesses 159,795
<5 employees 96,436
5-9 employees 26,635
10-19 employees 16,481
<20 employees 139,552
20-99 employees 13,737
100-499 employees 3,286
<500 employees 156,575
500+ employees 3,220

Wisconsin

Size Number of Businesses
Total Small Businesses 108,633
<5 employees 58,724
5-9 employees 18,940
10-19 employees 12,866
<20 employees 90,530
20-99 employees 12,368
100-499 employees 2,833
<500 employees 105,731
500+ employees 2,902

Wyoming

Size Number of Businesses
Total Small Businesses 18,597
<5 employees 11,408
5-9 employees 2,956
10-19 employees 1,692
<20 employees 16,056
20-99 employees 1,335
100-499 employees 386
<500 employees 17,777
500+ employees 820

Small Business Salary

According to Census data, small businesses with fewer than 500 employees have an annual payroll only ⅓ higher than the 540 firms with over 20,000 employees.

Below is a table providing information on enterprise size versus their total annual payroll:

Enterprise Size Annual Payroll ($1,000)
Total 7,428,553,593
<500 employees 2,925,394,585
500-749 employees 241,907,874
750-999 employees 169,612,267
1,000-1,499 employees 251,682,347
1,500-1,999 employees 190,998,940
2,000-2,499 employees 150,802,224
2,500-4,999 employees 476,449,256
5,000-9,999 employees 514,101,655
10,000-19,999 employees 566,223,127
20,000+ employees 1,941,381,318

Source: Census

Small Business Survival Statistics

New businesses can struggle to survive, particularly small businesses. Only half of new companies make it to 5 years with only a quarter of new companies surviving 15 years.

  • 7%: Between 1994 and 2019, only 67.7% of new businesses survived at least 2 years.
  • 9%: between 1994 and 2019 only 48.9% of businesses survived 5 years.
  • 6%: between 1994 and 2009 only 33.6% of small businesses survived 10 years.
  • 7%: between 1994 and 2019 only 25.7% of businesses survived 15 years.

Source: SBE

Small Business Industries

According to the US Census data, there are several Industries in which small businesses are employed including:

  • Agriculture, forestry, fishing and hunting
  • Mining, quarrying, and oil and gas extraction
  • Utilities
  • Construction
  • Manufacturing
  • Wholesale trade
  • Retail trade
  • Transportation and Warehousing
  • Information
  • Finance and Insurance
  • Real Estate and rental and leasing
  • Professional, scientific, and technical services
  • Management of companies and enterprises
  • Administrative and support
  • Educational services
  • Health care and social assistance
  • Arts, entertainment, and recreation
  • Accommodation and food services
  • Other

Across all of these nearly 20 different categories, small businesses vary from one state to the next with example, the majority of small businesses having to do with things like mining can agriculture in Midwestern states but information, technology, and manufacturing in eastern states.

  • 96%: 96% of small businesses work in industries like manufacturing.
  • 24%: Only 8% of small firms work in technology industries but they account for 24% of patents.
  • 8%: Only 8% of businesses work in construction or contract services.
  • 18%: 18% of small businesses work in retail.

Source: SBE

Small Business Owner Statistics By Demographics

US Census Data has found that certain demographics are more likely to own small businesses. Nearly half of businesses are started at home with entrepreneurs. Moreover, ownership of businesses is almost equally divided between men and women with men owning 51% of small businesses.

The data notes that older individuals, 40 or older, are more likely to own small businesses with the smallest percentage owned by individuals under the age of 30. Older adults have better resources, credit scores, and financing options with the time and money necessary to invest in new businesses.

Education is an important foundation for small business owner statistics by demographic but a bachelor’s degree is the most common highest level of achievement for small business owners.

  • 50%: The Chamber of Commerce has found that 50% of businesses begin at home.
  • 49%: 49% of small businesses are owned by women.
  • 67%: 67% of small businesses are owned by white individuals.
  • 5%: 15.5% of small businesses are owned by Hispanic individuals.
  • 4%: 6.4% of small businesses are owned by Asian individuals.
  • 3%: 6.3% of small businesses are owned by black individuals.
  • 63%: 63% of small businesses are owned by people 40 years or older.
  • 30%: 30% of small businesses are owned by individuals between the ages of 30 and 40.
  • 6%: 6% of businesses are owned by individuals between the ages of 20 and 30.
  • 52%: 52% of small business owners have at least a bachelor’s degree.
  • 21%: 21% of small business owners have an associate’s degree.
  • 10%: 10% of small business owners have a high school diploma.
  • 9%: 9% of business owners have a master’s degree.

Source: Chamber of Commerce

Sources

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