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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
