As a consultant who assists entrepreneurs daily, I‘m often asked – how many small businesses are there in the US right now? With the Great Resignation driving unprecedented growth, I wanted to provide an in-depth look at the data.
Over 32.5 million small businesses currently operate in the United States. This staggering figure represents 99.9% of all businesses in the country (per the SBA). The impact of these businesses can‘t be overstated. Just look at some key stats:
- Small businesses employ 61.2 million people – nearly half of the entire US workforce
- They generate around $5 trillion for the US economy each year
- We should see over 17 million new small business openings in 2024 alone
The resilience and growth of small business provide abundant opportunities right now for aspiring entrepreneurs like you. My experience assisting startups shows small business owners are cautiously optimistic despite economic uncertainty.
Demographic Breakdown of US Small Business Owners
As your small business mentor, I‘m regularly asked – who is starting these businesses? Let‘s dig into the demographic data:
By Gender
Women own about 11.7 million businesses, while men own 17.4 million businesses. While the gender gap persists, I‘ve seen tremendous growth in female entrepreneurship in recent years.
By Race/Ethnic Group
- 1.8 million small businesses are veteran-owned
- 3.1 million are African-American owned
- Over 4 million are Hispanic-owned
- 24.8 million are Caucasian-owned
Minority entrepreneurship continues rising – an exciting trend as their communities historically lacked capital access. I advise many minority-led startups on securing funding and resources.
By Location
The top states for number of small businesses are:
- California – 4.2 million
- Texas – 3 million
- Florida – 2.8 million
- New York – 2.3 million
- Illinois – 1.2 million
Iowa, Minnesota and New Hampshire lead for small business opportunities right now. Reasons vary – Iowa offers affordable living costs, Minnesota features a thriving startup ecosystem, New Hampshire boasts low taxes.
Small Businesses Are the Backbone of Our Economy
As your advisor, I cannot stress enough – entrepreneurs like you are the lifeblood generating economic growth and abundance through small businesses.
- In my experience, entrepreneurs personify the American ideals of self-determination, resilience and social mobility.
- Small businesses solve real problems in their communities. Each new bakery, app developer or landscaper fills a need.
- The flexibility & innovation small business owners demonstrate continually impresses me as they adapt to ever-changing markets.
So how many small businesses exist in America today? Over 32.5 million and rising exponentially! My message is clear – if you have a dream, there is no better time to start your own business. Let‘s connect to explore your startup idea!
