America Runs on Small Business

Data below are based on the article "America Runs on Small Business" by Mike Clough:

1. In 2007, there were 27.2 million businesses in the United States, according to the Small Business Administration's Office of Advocacy. Census data show that there were 6.0 million firms with employees and 20.4 million without employees in 2005. Small firms with fewer than 500 employees represent 99.94% of the 27.2 million businesses (including both employers and nonemployers), as the most recent data show there were slightly more than 17,000 large businesses (500+ employees) in 2005.

2. Of the 6.022 million U.S. firms with employees in 2006, here are the breakdowns by firm size (number of employees) as a percent of the total number of firms (data here):

Firms with fewer than 500 employees (6.004 million): 99.70% of all firms

Firms with 500+ employees (18,071): 0.30% of total

Firms with fewer than 100 employees (5.91m): 98.2% of total

Firms with fewer than 20 employees (5.37m): 89.3%

Firms with fewer than 10 employees (4.73m): 78.56%

Firms with fewer than 5 employees (3.67m): 61% of all firms.

3. From the article "America Runs On Small Business":

According to Census Bureau data on high-patent industries, 98% of the companies patenting telecommunications technology employ fewer than 500 people. In the software publishing industry, 97% of the companies patenting software employ fewer than 500 people. In aerospace products and parts manufacturing, the percentage is 92%. In pharmaceuticals and medical manufacturing, it is 90%. In semiconductor machinery manufacturing, 87% of the companies that patent technology employ fewer than 500 people.

HT: Jeff Perry