Research shows that an astonishing 86% of Americans have a favorable view of small businesses, praising their important contributions to both their local communities and the broader economy. These companies often offer a level of personal connection and quality service that larger companies can’t match, which earns them a special place in consumers’ hearts.
But beyond the personal touch and quality customer service, small businesses with fewer than 500 employees play a critical role in job creation, contributing a staggering 44% of U.S. economic activity. Masu. In fact, despite being labeled “small,” small businesses aren’t that small after all, making up nearly 99.9% of all U.S. businesses.
Interestingly, approximately 6 million of these companies maintain payroll. This not only hints at the importance of small and medium-sized enterprises in promoting employment in the country, but also reflects the importance of such small and medium-sized enterprises in supporting the livelihoods of the private sector workforce. Masu.
In terms of distribution, half of these 6 million small businesses employ between 1 and 4 employees, and a quarter employ between 5 and 19 employees. In 2021, these companies collectively created approximately 56.4 million jobs and generated an impressive $16.2 trillion in revenue. Indeed, a truly remarkable number!
The ownership structure of these small businesses is also very diverse.
Small Business: A Pillar of U.S. Economic Growth
Not everything is family-run, as is often thought. It can be a sole proprietorship, a partnership, or even a cooperative. More and more small businesses are organizing as limited liability companies (LLCs) or corporations.
All these diverse small businesses form the backbone of the U.S. economy. Their contributions extend beyond local communities to international trade and foster global connections and relationships. They are also dynamic drivers of innovation and pioneering breakthrough technologies, products and services.
Given their importance, we need to not only acknowledge their contributions but also actively support these companies. As they face hurdles such as access to capital and operational management, they must establish initiatives and policies to overcome these challenges. After all, supporting these businesses is a strategic investment in the long-term prosperity and diversity of our national economy.