Small businesses are key to the U.S. economy
Jack Kelly ’24, May 22, “Small Businesses, Which Employ More Than 60 Million U.S. Workers, Are Losing Confidence,” FORBES, accessed July 18, 2024, https://www.forbes.com/sites/jackkelly/2024/04/26/small-businesses-are-losing-confidence/
Small businesses—independent businesses with fewer than 500 employees—are a crucial component of the U.S. economy, as they account for substantial job creation and contribute significantly to the nation’s gross domestic product.
Why Small Businesses Are Critical To The U.S. Economy
There are 33.3 million small businesses in the U.S., which employ about 61.6 million workers, according to data by the Small Business Administration Office of Advocacy. Small businesses comprise nearly half (45.9%) of the American labor force and account for 43.5% of the country’s GDP.
In the past 25 years, small businesses have created more than 12.9 million jobs, representing around two-thirds of all new jobs added to the U.S. economy during this period.