Small business statistics show just how important small businesses are to the U.S. economy.
The United States has more than 36 million small businesses, representing 99.9% of all U.S. firms. Small businesses employ 62.3 million people, generate 43.5% of U.S. GDP, and have accounted for 61% of net new job creation since 1995.
Those headline numbers tell only part of the story.
Most small businesses do not have employees. New business applications remain historically significant. And business survival changes considerably depending on how long a company has already been operating.
This StartupWerx guide brings together current small business statistics from the U.S. Small Business Administration, U.S. Census Bureau and U.S. Bureau of Labor Statistics to provide a clearer picture of American entrepreneurship in 2026.
Last reviewed: September 2026
Data note: “2026” refers to the publication year of this guide. Government business datasets are released on different schedules, so individual statistics may represent 2022, 2023, 2024 or 2026 data. The reference period is identified throughout this guide rather than presenting older underlying data as if it were collected in 2026.
Small Business Statistics 2026 at a Glance
| Statistic | Figure | Reference Period / Source |
|---|---|---|
| Small businesses in the U.S. | 36,207,130 | SBA Office of Advocacy, February 2026 |
| Share of all U.S. firms that are small | 99.9% | SBA Office of Advocacy, February 2026 |
| Small businesses with no employees | 82.3% | SBA compilation using 2022 NES/SUSB |
| Small businesses with paid employees | 17.7% | SBA compilation using 2022 NES/SUSB |
| People employed by small businesses | 62.3 million | SBA Office of Advocacy, February 2026 |
| Share of private-sector employment | 45.9% | SBA Office of Advocacy, February 2026 |
| Share of U.S. GDP | 43.5% | SBA Office of Advocacy |
| Share of private-sector payroll | 38.7% | SBA Office of Advocacy |
| Small-business private-sector payroll | $3.5 trillion | SBA Office of Advocacy |
| Share of private-sector receipts | 35.0% | SBA Office of Advocacy |
| Small-business private-sector receipts | $17.8 trillion | SBA Office of Advocacy |
| Share of U.S. exporters | 97.2% | SBA Office of Advocacy |
| Small-business exporters | 270,014 | SBA Office of Advocacy |
| Share of known export value | 33.0% | SBA Office of Advocacy |
| Known small-business export value | $588.4 billion | SBA Office of Advocacy |
| Share of net new jobs created since 1995 | 61% | SBA analysis of BLS BED, 1995–2024 |
| Business applications in August 2026 | 531,728 | U.S. Census Bureau BFS |
| Projected employer formations from August 2026 applications within four quarters | 28,501 | U.S. Census Bureau BFS |
| Latest Census count of nonemployer establishments | 30,427,808 | 2023 NES |
Primary sources: SBA Office of Advocacy — Frequently Asked Questions About Small Business 2026, U.S. Census Bureau — Business Formation Statistics, U.S. Census Bureau — Nonemployer Statistics, and U.S. Bureau of Labor Statistics — Business Employment Dynamics.
How Many Small Businesses Are There in the United States?
According to the U.S. Small Business Administration Office of Advocacy, there are:
36,207,130 small businesses in the United States.
Small businesses represent approximately:
99.9% of all U.S. firms.
For research purposes, the SBA Office of Advocacy generally defines a small business as an independent business with fewer than 500 employees.
That definition is useful for national economic research, but it should not be confused with the SBA’s industry-specific size standards used for certain federal programs and contracting purposes.
Most Small Businesses Have No Employees
One of the most important small-business statistics is also one of the easiest to overlook.
According to the SBA’s February 2026 compilation:
- 29,811,495 small businesses were nonemployer firms.
- 6,395,635 small businesses were employer firms.
- 82.3% had no paid employees.
- 17.7% had paid employees.
Those figures are based on the underlying 2022 Nonemployer Statistics and Statistics of U.S. Businesses datasets used by the SBA.
This means the typical picture of a small company with an office and multiple employees represents only one part of the small-business economy.
A large portion consists of individuals operating businesses without employees.
They can include:
- Consultants
- Freelancers
- Independent professionals
- Contractors
- Ecommerce sellers
- Creators
- Real estate businesses
- Home-service businesses
- Solo professional practices
More recent Census data reinforces the scale of this group.
The Census Bureau’s 2023 Nonemployer Statistics counted 30,427,808 nonemployer establishments with approximately $1.753 trillion in receipts.
Because Census datasets have different definitions, methodologies and release schedules, the 2023 Census figure should not simply be substituted into the SBA’s 36.2 million total. It is better understood as the latest standalone Census measurement of the nonemployer economy.
How Many Americans Work for Small Businesses?
Small businesses employ approximately:
62.3 million people.
That represents:
45.9% of U.S. private-sector workers.
This means nearly half of private-sector employment is associated with businesses classified as small under the SBA Office of Advocacy’s research methodology.
Small businesses also account for approximately:
38.7% of private-sector payroll, or about $3.5 trillion.
The difference between the employment and payroll shares is worth noting.
Small businesses represent 45.9% of private employment but 38.7% of payroll according to the SBA figures.
Those percentages should not be interpreted as a direct wage comparison for individual workers. Industry mix, company size, occupations, hours, benefits and numerous other factors affect compensation.
But the figures demonstrate the enormous role small employers play in the U.S. labor market.
How Much of the U.S. Economy Comes From Small Businesses?
The SBA Office of Advocacy reports that small-business economic activity represents approximately:
43.5% of U.S. gross domestic product.
Small businesses also account for:
- 35.0% of private-sector receipts
- Approximately $17.8 trillion in private-sector receipts
- 38.7% of private-sector payroll
This makes small businesses economically significant even though individual companies may be relatively small.
The U.S. small-business economy isn’t one market.
It is millions of businesses operating across construction, professional services, retail, healthcare, transportation, real estate, hospitality, manufacturing, technology and numerous other industries.
How Many New Jobs Do Small Businesses Create?
Small businesses are an important source of net job creation.
According to the SBA Office of Advocacy’s analysis of Bureau of Labor Statistics Business Employment Dynamics data:
From January 1995 through December 2024, small businesses created approximately:
20.7 million net new jobs.
Large businesses created approximately:
13.2 million net new jobs.
That means small businesses accounted for approximately:
61% of net new job creation during the period.
The time period matters.
This does not mean small businesses create exactly 61% of new jobs every year.
Job creation and job losses vary considerably with economic conditions. The SBA data show especially large volatility surrounding the 2020 recession and subsequent recovery.
The more accurate statement is:
Small businesses accounted for 61% of net new U.S. jobs created from 1995 through 2024, according to the SBA Office of Advocacy’s analysis of BLS data.
That distinction makes the statistic more useful—and more difficult to misinterpret.
How Many People Are Starting Businesses in 2026?
One of the fastest ways to measure entrepreneurial activity is through the Census Bureau’s Business Formation Statistics (BFS).
The BFS tracks applications for Employer Identification Numbers and uses those applications to develop several measures of potential future business formation.
In August 2026, the Census Bureau reported:
531,728 seasonally adjusted business applications.
That was a 7.8% decrease from July 2026.
But a business application is not the same thing as a new operating business.
That distinction is important.
The Census Bureau also produces projected business-formation measures.
For the August 2026 application cohort, Census projected:
28,501 new businesses with payroll tax liabilities would form within four quarters of application.
That projection was 4.6% lower than the comparable July projection.
Business Applications vs. Business Formations
| Measure | What It Means |
|---|---|
| Business Applications | Applications for an Employer Identification Number that meet Census BFS criteria |
| High-Propensity Business Applications | Applications Census identifies as having characteristics associated with becoming employer businesses |
| Projected Business Formations | Estimated employer businesses expected to emerge from an application cohort |
| Actual Business Formation | A business reaching the payroll-tax-liability threshold used in the BFS formation methodology |
This distinction prevents a common statistical mistake.
531,728 business applications in August 2026 does not mean 531,728 new businesses opened that month.
The application figure measures entrepreneurial activity at an earlier point in the formation process.
What Are Business Formation Statistics?
The Census Bureau’s Business Formation Statistics provide high-frequency information about business applications and formations.
Monthly data are available beginning in July 2004.
The Census Bureau publishes several application measures, including:
- Business Applications
- High-Propensity Business Applications
- Business Applications with Planned Wages
- Business Applications from Corporations
It also publishes business-formation measures and projections.
Data are available nationally and geographically, including state-level data, making BFS particularly useful for understanding changes in entrepreneurship over time.
For someone considering starting a business, these statistics provide context about the broader entrepreneurial environment.
They don’t tell you whether a particular business idea will succeed.
That requires evaluating the specific market, customer demand, competition, startup costs and economics of the business.
How Long Do New Businesses Survive?
Business survival statistics are frequently oversimplified.
Statements such as “half of businesses fail within five years” are often repeated without identifying the dataset, cohort or definition of failure.
Bureau of Labor Statistics Business Employment Dynamics data provide a more precise way to examine establishment survival.
For example, BLS reported the following five-year survival rates for selected startup cohorts:
| Business Birth Year | Surviving After 5 Years |
|---|---|
| 1994 | 54.3% |
| 2001 | 52.3% |
| 2003 | 55.3% |
| 2006 | 49.8% |
| 2010 | 56.0% |
| 2018 | 57.3% |
Source: U.S. Bureau of Labor Statistics — Business Employment Dynamics Twentieth Anniversary
The important takeaway isn’t that there is one universal five-year survival rate.
There isn’t.
Survival varies by:
- Business birth year
- Economic conditions
- Industry
- Geography
- Establishment characteristics
For the 2018 startup cohort, BLS reported a five-year survival rate of 57.3%.
That is a more precise statement than simply saying that half of all businesses fail within five years.
What Percentage of Businesses Survive 10 Years?
BLS provides longer-term survival data as well.
Among private-sector business establishments born in March 2013, approximately:
34.7% were still operating in March 2023.
In other words, roughly one-third of establishments in that particular cohort survived for ten years.
Again, this should not be interpreted as a prediction that exactly 34.7% of businesses started today will survive ten years.
The statistic describes a specific historical cohort.
Economic conditions, industry, location and other factors can change survival outcomes.
Survival Improves for Businesses That Make It Through the Early Years
Business risk is not constant throughout the life of a company.
BLS research shows that the probability of continued survival generally improves as establishments remain in business longer.
That makes intuitive sense.
Businesses that survive their early years have had more time to:
- Establish a customer base
- Improve pricing
- Refine operations
- Build supplier relationships
- Develop recurring revenue
- Accumulate capital
- Learn which products or services customers actually value
This doesn’t eliminate risk.
But it helps explain why simply quoting a single “business failure rate” can hide important information about how survival changes over time.
Small Businesses and U.S. Exports
Small businesses also participate extensively in international trade.
According to the SBA Office of Advocacy, small businesses account for:
- 97.2% of U.S. exporters
- Approximately 270,014 exporting businesses
- 33.0% of known U.S. export value
- Approximately $588.4 billion in known export value
The contrast is notable.
Small businesses represent nearly all exporting firms by count but approximately one-third of known export value.
That reflects the much larger transaction scale of many large multinational exporters.
Still, hundreds of thousands of small companies participate directly in international markets.
The Structure of the U.S. Small Business Economy
Putting the statistics together reveals something important about American entrepreneurship.
The small-business economy is not dominated by one type of company.
It includes at least two very different groups.
Nonemployer Businesses
These businesses have no paid employees.
They represent the overwhelming majority of small businesses by count.
Many are built primarily around the owner’s:
- Labor
- Expertise
- Professional skills
- Intellectual property
- Equipment
- Digital products
- Client relationships
Employer Businesses
These businesses employ other people.
Although much smaller in number, they play an outsized role in employment, payroll and economic activity.
For entrepreneurs, this distinction matters because the financial and operational requirements of these two business models can be dramatically different.
A consultant working alone from home has a very different startup-cost structure from a restaurant employing 20 people.
StartupWerx explores those differences in Cost to Start a Business in 2026: Complete Startup Cost Guide.
What the Numbers Mean for Someone Starting a Business
National statistics cannot tell you whether your business will succeed.
They can provide context.
The data show that entrepreneurship is not a fringe activity in the U.S. economy.
More than 36 million small businesses operate across the country, and the majority have no employees.
That creates multiple paths into entrepreneurship.
Someone doesn’t necessarily need to begin with an office, employees and significant infrastructure.
A business can begin with one owner and grow from there.
At the same time, the survival data are a reminder that starting a business and building a sustainable business are different accomplishments.
Before launching, entrepreneurs should evaluate:
- Customer demand
- Competition
- Pricing
- Startup costs
- Operating expenses
- Required licenses and permits
- Business structure
- Cash reserves
- Customer-acquisition strategy
- Revenue assumptions
Understanding the statistics provides context.
Building a viable business requires applying that context to a specific opportunity.
Ready to Turn Your Business Idea Into a Business?
Researching the market is an important first step. When you’re ready to make your business official, StartupWerx can help you move from planning to formation.
Frequently Asked Questions
How many small businesses are there in the United States in 2026?
The SBA Office of Advocacy’s February 2026 publication reports 36,207,130 small businesses in the United States.
The underlying business datasets have different reference years, so this should be described as the SBA’s 2026 published estimate rather than saying all 36.2 million businesses were measured during 2026.
What percentage of U.S. businesses are small businesses?
According to the SBA Office of Advocacy, 99.9% of U.S. firms are small businesses.
For its research, the Office of Advocacy generally defines a small business as an independent business with fewer than 500 employees.
How many small businesses have no employees?
The SBA’s 2026 small-business compilation reports 29,811,495 nonemployer small businesses, representing 82.3% of U.S. small businesses in the underlying 2022 datasets.
The Census Bureau’s newer standalone 2023 Nonemployer Statistics dataset counted 30,427,808 nonemployer establishments.
How many people work for small businesses?
Small businesses employ approximately 62.3 million people, according to the SBA Office of Advocacy.
That represents approximately 45.9% of private-sector employment.
What percentage of jobs are created by small businesses?
From January 1995 through December 2024, small businesses accounted for approximately 61% of net new job creation, according to SBA Office of Advocacy analysis of BLS Business Employment Dynamics data.
That is a long-term measure and should not be interpreted as the percentage of jobs small businesses create every year.
How many new businesses are started each month?
There isn’t one number that accurately answers this question because business applications and actual business formations are different measures.
The Census Bureau reported 531,728 seasonally adjusted business applications in August 2026.
From that application cohort, Census projected 28,501 employer businesses with payroll tax liabilities would form within four quarters.
What percentage of businesses survive five years?
There is no universal five-year survival percentage.
BLS data show that five-year survival rates vary by startup cohort and economic conditions.
For establishments born in 2018, the five-year survival rate was 57.3%.
What percentage of businesses survive ten years?
BLS reported that 34.7% of private-sector establishments born in March 2013 were still operating in March 2023.
That figure describes that specific historical cohort rather than predicting the survival rate of businesses starting today.
Do most small businesses have employees?
No.
The SBA’s 2026 compilation reports that approximately 82.3% of small businesses are nonemployer firms, meaning they have no paid employees.
How much of the U.S. economy comes from small businesses?
The SBA Office of Advocacy reports that small businesses account for approximately 43.5% of U.S. GDP.
Sources and Methodology
StartupWerx built this guide primarily from U.S. government statistical sources.
Primary Sources
- U.S. Small Business Administration Office of Advocacy — Frequently Asked Questions About Small Business 2026
- U.S. Census Bureau — Business Formation Statistics
- U.S. Census Bureau — Business Formation Statistics Data Tables
- U.S. Census Bureau — Nonemployer Statistics
- U.S. Bureau of Labor Statistics — Establishment Age and Survival Data
- U.S. Bureau of Labor Statistics — Business Employment Dynamics Twentieth Anniversary
StartupWerx Methodology
Government datasets are published on different schedules.
For that reason, StartupWerx does not treat “2026” as the reference year for every statistic on this page.
Instead:
- Publication year identifies when a government agency released or summarized information.
- Reference year or period identifies when the underlying economic activity occurred.
- Business applications are kept separate from actual or projected business formations.
- Employer firms are distinguished from nonemployer businesses.
- Survival statistics identify the business cohort being measured rather than presenting one historical cohort as a universal failure rate.
Figures may also differ across federal datasets because agencies use different definitions, universes and methodologies.
Readers using these statistics for research should cite the underlying government source and reference period rather than assuming every statistic describes economic conditions measured during 2026.
Continue Building Your Business
Statistics can show what is happening across millions of American businesses.
Starting one requires turning those broad patterns into decisions about your own market, costs, structure and operating plan.
StartupWerx’s Form, Manage, and Grow a Small Business guide provides a broader roadmap from formation through ongoing operations and growth.
You can also continue with:
- Cost to Start a Business in 2026
- LLC Formation Costs by State
- How to Write a Business Plan
- How to Start an LLC
- How to Get an EIN
Ready to Start Your Business?
Understanding the small-business landscape can help you plan. When you’re ready to turn your idea into an official business, StartupWerx can help you take the next step.
StartupWerx helps entrepreneurs move from business idea to formation with practical guidance and tools designed to simplify the process.
Still Exploring Business Ideas?
You don’t need to have every detail figured out before you begin exploring your options.
Use StartupWerx to explore business ideas and find opportunities that fit your interests, experience and goals.