Facts about Small Business

Everyone agrees on a wide level that small companies are important to the market. 

 The Small Business Administration defines a small company as an independent company with less than 500 workers.

There are an estimated 23 million companies in the USA that fulfill that classification. In some smaller cities in the USA, these companies represent a significant source of employment.

In reality, small companies according to the Small Business Administration represent 99.7 percent of all of the companies in the nation and employ half of all private sector workers.

Facts about Small Business

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More than 45 percent of the private business payroll is created by business. Throughout the previous ten years, small companies have accounted for 60 to 80 percent of new jobs created on a yearly basis.

Even though a large proportion of small companies are in the service and retail industries, small companies are quickly making profits in the tech industry.

 41% of high tech employees like scientists, engineers, and computer programmers are employed by small companies. Employees at small companies create 13 to 14 times more patents than those used by larger companies.

The Small Business Administration also offers some interesting observations on small business survival. Two-thirds of small businesses survive for at least two years declining to 44% after four years.

Most of the factors that support a small business surviving are well known, such as access to capital and owner's education level. However, a lesser known factor in small business survival is that the business is large enough to have employees.