Small Business Profiles

http://www.techcelerate.ventures

30.2 million Small Businesses 58.9 million Small Business Employees 99.9% of United States Businesses 47.5% of United States Employees

About Techcelerate Ventures

Tech Investment and Growth Advisory for Series A in the UK, operating in £150k to £5m investment market, working with #SaaS #FinTech #HealthTech #MarketPlaces and #PropTech companies.

Small Business UNITED STATES STATES Small Business UNITED STATES Small Small Business profile EMPLOYER employee Source Small Business EMPLOYER Firm

http://www.techcelerate.ventures

30.2 million Small Businesses 58.9 million Small Business Employees 99.9% of United States Businesses 47.5% of United States Employees

About Techcelerate Ventures

Tech Investment and Growth Advisory for Series A in the UK, operating in £150k to £5m investment market, working with #SaaS #FinTech #HealthTech #MarketPlaces and #PropTech companies.

Small Business UNITED STATES STATES Small Business UNITED STATES Small Small Business profile EMPLOYER employee Source Small Business EMPLOYER Firm

UNITED STATES 
30.2 million Small Businesses 
58.9 million Small Business Employees 
99.9% 
of United States Businesses 
47.5% 
of United States Employees 
EMPLOYMENT 
1.9 million 
net new jobs 
DIVERSITY 
8.0 million 
minority-owned 
businesses 
TRADE 
287,835 
small business 
exporters 
OVERALL UNITED STATES ECONOMY 
	 Multiple economic indicators consistently signaled a strengthening US economy in 2017. In the third quarter of 2017, the 
United States grew at an annual rate of 3.4%. The United States's 2016 growth rate of 1.5% was down from the 2015 rate 
of 2.7%. (Source: BEA) 
	 The employment situation in the United States continued to improve. In February 2018, the unemployment rate was 4.1%, 
down from 4.7% in February 2017. (Source: CPS) 
EMPLOYMENT 
Figure 1: United States Employment by Business Size
 
(Employees)
 
fewer than 20
20 to 99
100 to 499
more than 500
0
20M
40M
60M
80M
100M
120M
2000
2005
2010
2015
	 United States small businesses employed 58.9 million peo
ple, or 47.5% of the private workforce, in 2015. (Source: 
SUSB) 
	 Firms with fewer than 100 employees have the largest share 
of small business employment. Figure 1 provides further 
details on firms with employees. (Source: SUSB) 
	 Private-sector employment increased 1.8% during the 12
month period ending in February 2018. This was above the 
increase of 1.0% during the prior 12-month period. (Source: 
CPS) 
	 The number of proprietors increased in 2016 by 2.3% rela
tive to the previous year. (Source: BEA) 
	 Small businesses created 1.9 million net jobs in 2015. Firms 
employing fewer than 20 employees experienced the largest 
gains, adding 1.1 million net jobs. The smallest gains were 
in firms employing 100 to 499 employees, which added 
387,874 net jobs. (Source: SUSB) 
The Small Business Profiles are produced by the US Small Business Administration's Office of Advocacy. Each report incorporates the most up-to-date 
government data to present a unique snapshot of small businesses. Small businesses are defined for this profile as firms employing fewer than 500 
employees. Net small business job change, minority small business ownership, and exporter share statistics are based on the 2015 Statistics of US 
Businesses (SUSB), 2012 Survey of Business Owners (SBO), and 2015 International Trade Administration (ITA) data, respectively. 
SBA Office of Advocacy	 
1 
United States Small Business Profile, 2018 
INCOME AND FINANCE 
	 The number of banks decreased by 271 between June 2016 and June 2017 to 5,787 banks. (Source: FDIC) 
	 In 2016, 5.7 million loans under $100,000 (valued at $82.6 billion) were issued by United States lending institutions reporting 
under the Community Reinvestment Act. (Source: FFIEC) 
	 The median income for individuals self-employed at their own incorporated businesses was $50,347 in 2016. For individuals 
self-employed at their own unincorporated firms, this figure was $23,060. (Source: ACS) 
Median income represents earnings from all sources. Unincorporated self-employment income includes unpaid family workers, a very small percent of 
the unincorporated self-employed. 
EMPLOYER BUSINESS OWNER DEMOGRAPHICS 
Figure 2: United States Employees per Business by Owner's Demographic, 2015 
Male
Female
Nonminority
Minority
Nonveteran
Veteran
Some other race
Native American-Alaskan
Hispanic
Hawaiian-Pacific Islander
Asian
African American
All Firms
0
2
4
6
8
10
12
Figure 2 shows the average number of employees per employer business by owner's demographic group according to the Annual Survey of Entrepreneurs 
(ASE). 
TURNOVER AMONG ESTABLISHMENTS WITH EMPLOYEES 
Figure 3: United States Quarterly Startups and Exits
 
160K
180K
200K
220K
240K
1995
2000
2005
2010
2015
startups
exits
	 In the third quarter of 2016, 240,000 establishments started 
up, generating 872,000 new jobs in the United States. Star
tups are counted when business establishments hire at 
least one employee for the first time. (Source: BDM) 
	 In the same period, 215,000 establishments exited resulting 
in 749,000 jobs lost. Exits occur when establishments go 
from having at least one employee to having none, and then 
remain closed for at least one year. (Source: BDM) 
	 Figure 3 displays quarterly startups and exits from 1992 to 
2016. Each series is smoothed across multiple quarters to 
highlight long-run trends. (Source: BDM) 
The BLS data covers only business establishments with employees. BLS 
refers to startups as births and exits as deaths. These terms are distinct 
from the BLS openings and closings categories. Openings include sea
sonal re-openings and closings include seasonal shutterings. Quarterly 
startup and exit values may not align with Figure 3 due to smoothing. 
SBA Office of Advocacy	 
2 
United States Small Business Profile, 2018 
INTERNATIONAL TRADE 
 A total of 294,834 companies exported goods from the United States in 2015. Of these, 287,835, or 97.6%, were small
 
firms; they generated 32.9% of the United States's $1.3 trillion in total exports. (Source: ITA)
 
SMALL BUSINESS EMPLOYMENT BY INDUSTRY AND COUNTY 
Table 1: United States Employment by Industry, 2015 
Industry 
Small Business 
Total Private 
Small Business 
Employment 
Employment 
Employment Share 
Health Care and Social Assistance 
8,687,568 
19,221,864 
45.2 
Accommodation and Food Services 
7,997,654 
13,196,892 
60.6 
Retail Trade 
5,514,378 
15,704,167 
35.1 
Manufacturing 
5,155,086 
11,605,501 
44.4 
Professional, Scientific, and Technical Services 
5,075,601 
8,798,260 
57.7 
Construction 
4,944,116 
6,008,286 
82.3 
Other Services (except Public Administration) 
4,626,826 
5,401,233 
85.7 
Administrative, Support, and Waste Management 
3,625,057 
11,112,465 
32.6 
Wholesale Trade 
3,486,807 
6,076,109 
57.4 
Finance and Insurance 
1,920,066 
6,135,914 
31.3 
Transportation and Warehousing 
1,650,009 
4,616,568 
35.7 
Educational Services 
1,603,707 
3,642,170 
44.0 
Real Estate and Rental and Leasing 
1,410,530 
2,065,427 
68.3 
Arts, Entertainment, and Recreation 
1,370,194 
2,230,822 
61.4 
Information 
897,225 
3,394,317 
26.4 
Management of Companies and Enterprises 
404,386 
3,308,759 
12.2 
Mining, Quarrying, and Oil and Gas Extraction 
296,005 
743,660 
39.8 
Agriculture, Forestry, and Fishing and Hunting 
136,254 
160,144 
85.1 
Utilities 
112,523 
639,234 
17.6 
Industries not classified 
24,155 
24,155 
100.0 
Total 
58,938,147 
124,085,947 
47.5 
Figure 4: United States Small Business Employment by County, 2015 
Small Business Employment (%)
16 to 50
50 to 60
60 to 74
74 to 100
SBA Office of Advocacy 
3 
United States Small Business Profile, 2018 
SMALL BUSINESSES BY INDUSTRY 
Table 2: United States Small Businesses by Industry and Firm Size, 2015
 
Industry 
1-499 Employees 1-20 Employees Nonemployer Total Small Firms 
Firms 
Professional, Scientific, and Technical Services 
796,737 
747,952 
3,410,855 
4,207,592 
Other Services (except Public Administration) 
680,783 
635,810 
3,695,012 
4,375,795 
Construction 
668,196 
615,701 
2,430,014 
3,098,210 
Health Care and Social Assistance 
652,900 
569,088 
1,978,850 
2,631,750 
Retail Trade 
650,133 
594,267 
1,985,553 
2,635,686 
Accommodation and Food Services 
515,566 
401,142 
371,413 
886,979 
Administrative, Support, and Waste Management 
331,964 
295,202 
2,069,144 
2,401,108 
Wholesale Trade 
304,031 
262,019 
417,272 
721,303 
Real Estate and Rental and Leasing 
290,173 
277,338 
2,635,780 
2,925,953 
Manufacturing 
247,961 
187,862 
355,467 
603,428 
Finance and Insurance 
235,726 
218,939 
718,472 
954,198 
Transportation and Warehousing 
177,150 
157,974 
1,528,264 
1,705,414 
Arts, Entertainment, and Recreation 
122,089 
106,357 
1,341,733 
1,463,822 
Educational Services 
88,826 
70,210 
710,383 
799,209 
Information 
73,028 
63,321 
328,995 
402,023 
Mining, Quarrying, and Oil and Gas Extraction 
21,657 
18,157 
98,134 
119,791 
Agriculture, Forestry, and Fishing and Hunting 
21,584 
20,212 
236,094 
257,678 
Utilities 
5,706 
4,493 
19,968 
25,674 
Total 
5,881,267 
5,265,682 
24,331,403 
30,212,670 
Figure 4 and Tables 1 and 2 display data from the 2015 SUSB. Table 2 includes additional data from the 2015 Nonemployer Statistics (NES). Data for 
counties shown in white in Figure 4 were withheld by the Census Bureau because they do not meet publication standards or could disclose information 
regarding individual businesses. 
REFERENCES 
The Small Business Profiles, source data, and methodology are available at https://go.usa.gov/xQT4w. 
ASE 
Annual Survey of Entrepreneurs, US Census Bureau 
BEA 
Bureau of Economic Analysis, US Department of Commerce 
BDM 
Business Employment Dynamics, BLS 
BLS 
Bureau of Labor Statistics, US Department of Labor 
CPS 
Current Population Survey, BLS 
FDIC 
Call Reports, Federal Deposit Insurance Corporation 
FFIEC Federal Financial Institutions Examination Council 
ITA 
International Trade Administration, US Department of Commerce 
NES 
Nonemployer Statistics, US Census Bureau 
SBO 
Survey of Business Owners, US Census Bureau 
SUSB Statistics of US Businesses, US Census Bureau 
SBA Office of Advocacy 
4 
United States Small Business Profile, 2018