Small biz growing – that’s k2 econ

In terms of their impact on the economy, small businesses aren’t actually that small.

Small businesses are generally defined by the U.S. Small Business Association (SBA) as independent businesses having fewer than 500 employees. Based on SBA's definition, there are 33.2 million small businesses in America, which account for 99.9% of all U.S. firms.

Small businesses are credited with just under two-thirds (63%) of the new jobs created from 1995 to 2021 or 17.3 million new jobs. Small businesses represent 97.3% of all exporters and 32.6% of known export value ($413.3 billion). They also employ almost half (46%) of America's private sector workforce and represent 43.5% of gross domestic product.

By almost any measure, small businesses are a vital part of the American economy and workforce.

Small business starts reach new highs

Entrepreneurship is booming in the U.S. In 2021 alone, a record-breaking 5.4 million new business applications were filed, and nearly as many (5.1 million) were filed in 2022.

"Entrepreneurship is booming in the U.S. In 2021 alone, a record breaking 5.4 million new business applications were filed."

New economic needs and changing consumer preferences during the COVID-19 pandemic created more circumstances for new businesses to start. Many individuals turned their ideas and hobbies into a business that could be run from home, and the number of e-commerce retailers skyrocketed. Professional and business services were not far behind, as entrepreneurs tapped into the need for personal consulting services.