Small businesses play a significant role in driving innovation, economic growth, and job creation.
In the United States, small businesses are the lifeblood of the country’s economy.
According to statistics, they comprise 99.9% of all businesses in the US and generate 12.9 million new jobs over the last 25 years, accounting for 66% of jobs added to the economy.
Wondering how many small businesses exist in the US in 2024? Let’s find out in this resource.
Key Small Business Statistics
- The US is home to 33.2 million small businesses.
- California has the most small businesses among all states in the US, accounting for 4.2 million small businesses in 2022.
- About 27.1 million small businesses have no employees at all.
- In 2022, small businesses in the US recorded 61.7 million employees.
- Most small business owners in the country are among Gen X, ages 41 to 56.
- Only 1% of small business owners in the US are 18 to 24 years old.
- 77% of small business customers regularly go to bakeries, restaurants, and bars.
- About 80% of small businesses in the US survive their first year.
How Many Small Businesses Exist in the US in 2024?
Small businesses, often operated independently or with family, contribute to local communities and the economy of the country.
They are significant sources of jobs and innovation.
Data explains that small businesses in the United States serve as the backbone of the country’s economy as it creates job and entrepreneurial opportunities, reducing unemployment rates.
Based on the US Small Business Administration’s report, small businesses employ more than 61.5 million people as of 2022.
How many small businesses exist in the US in 2023? Small businesses make up almost all US businesses, accounting for 99.9%.
The most recent report shows that there are 33.2 million small businesses in the US, up from less than 30 million in 2017. This marks around 11% growth from 2017.
Number of Existing Small Businesses in the US
Let’s take a look at the number of existing small businesses in the US from 2017 to 2022:
- There were 29.6 million small businesses in the US in 2017
- There were 30.2 million small businesses in the US in 2018
- There were 30.7 million small businesses in the US in 2019
- There were 31.7 million small businesses in the US in 2020
- There were 32.5 million small businesses in the US in 2021
- There were 33.2 million small businesses in the US in 2022
What State in the US has the Most Number of Small Businesses?
The rise in the number of small businesses in every state across the US nurtured a lot of opportunities.
They are the major contributors to job creation per state.
Small businesses often hire residents from the nearby area, contributing to the local labor force and fostering a sense of community.
California has the most number of small businesses among all states in the US. It was home to 4.20 million small businesses in 2022.
Small business employees in California represent 47.9% of the total employees in the state, equivalent to 7.4 million small business employees.
Texas followed, accounting for 3.10 million small businesses with 4.9 million employees.
Florida has 3 million small businesses with 3.6 million employees, and New York has 2.30 million small businesses with 4.1 million employees.
Small Businesses in the US by Employee Size
According to SBA, small businesses in the US have less than 500 employees.
For comparison, small businesses in Australia have less than 20 employees, while businesses in the EU with less than 50 employees are considered small.
Among the 33.2 million existing small businesses in the US, about 27,104,006 have no employees at all.
16% have at least one to 19 employees, equal to 5,431,541 small businesses, and only 650,003 small businesses have 20 to 499 employees.
How Many Employees Work in Small Businesses in the US
The number of small business employees in the US is continuously increasing every year.
As of 2022, small businesses in the US have a total of 61.7 million employees, up from 57.9 million five years ago.
The current count of small business employees makes up nearly half of the US workforce, equivalent to 46.4%.
Number of Small Business Employees in the US
Here is the list of the numbers of small business employees in the US from 2017 to 2022:
- In 2017, there were 57.9 million small business employees in the US
- In 2018, there were 58.9 million small business employees in the US
- In 2019, there were 59.9 million small business employees in the US
- In 2020, there were 60.6 million small business employees in the US
- In 2021, there were 61.2 million small business employees in the US
- In 2022, there were 61.7 million small business employees in the US
What is the Age Group of Most Small Business Owners in the US?
Most small business owners in the US are among Generation X, ages 41 to 56.
Older people are mostly building small businesses because they often possess valuable experience and expertise after spending years working in a specific industry.
Aside from that, they have financial means like savings or retirement funds.
Percentages of Small Business Owners in the US by Age
Below are the percentages of small business owners in the US by age:
- 1% of small business owners in the US are 18 to 24 years old
- 13% of small business owners in the US are 25 to 40 years old
- 46% of small business owners in the US are 41 to 56 years old
- 41% of small business owners in the US are 57 to 75 years old
Small Business Customers
Nearly half of all people in the US rely on small businesses at least two to four times per week.
According to a survey, 77% of small business customers regularly go to bakeries, restaurants, and bars, while 40% shop in clothing, accessory, and shoe stores.
About 32% of customers visit bookstores, and 30% buy gifts, novelties, and souvenirs.
Percentage of Small Businesses that Survive by Years in Business
Research reveals that 80% of small businesses in the US survive for a year, and only 25% survive for 15 years.
About 20% of small businesses fail to survive within their first year.
Here are the percentages of small businesses that survive by years in business:
- 80% of small businesses in the US survive for a year
- 55% of small businesses in the US survive for five years
- 30% of small businesses in the US survive for ten years
- 25% of small businesses in the US survive for fifteen years
Conclusion
Small businesses contribute to the economy of the US.
They play a vital role in economic growth, job opportunities, and community development.
Recognizing the significance of small businesses in the country and supporting their growth helps create more opportunities.
Today, over 33 million small businesses are in the US, employing more than 61.5 million people.
That’s how many small businesses exist in the US. Thanks for reading our article.