Small business is thriving and boosting broader U.S. growth

Small business growth drives a strong U.S. economy and provides jobs people can raise a family on

In 2023, small businesses made up 99.9% of all businesses in the United States and drove nearly 44% of all U.S. output.

Over the last 10 years small businesses have contributed to more than half of all net job growth in the United States.

While self-employment is a common reason to start a new business, the United States is also setting records for applications for likely employer businesses, i.e. the types of new businesses that are most likely to employ additional workers.

After falling between 2007 and 2019, the percent of Black families owning a business doubled between 2019 and 2022 from 4.8% to 11%. The share of new Latino small business owners has also surged. Research shows that these new business owners are especially likely to start employer businesses and create additional jobs.

Small businesses are also the backbone of thriving local economies and have been shown to create more jobs on net than big companies. Research also indicates locally-led small business growth is key to driving economic prosperity in rural communities.

By increasing rural access to broadband, Democrats are also investing in the future of rural small business and their capacity to grow their online presence.

Democrats have fueled new investment in small businesses through landmark bills and executive actions

Congressional Democrats have committed billions to directly support small business. Their actions have helped spur the economic recovery, boosted infrastructure, invested in clean energy, and bolstered American semiconductor production.

By passing the Small Business Innovation Research and Small Business Technology Transfer (SBIR and STTR) programs Extension Act of 2022, Democrats ensured that, through “America’s Seed Fund,” small businesses that are focused on innovative research and development will keep our country at the forefront of creating cutting edge technology.

Democrats are also freeing up credit for entrepreneurs across the country, targeting an issue that is vital for small businesses’ hiring and overall success.

Democratic initiatives like Smart Growth and the Rural Partners Network ensure business development is locally-led and that investments spread across the local economy.

The numbers are clear that business growth is booming under President Biden, due to the strong economic recovery and policies passed by Democrats in Congress. This positive trend will continue to support the U.S. economy at every level while creating a new generation of U.S. entrepreneurs.