It is axiomatic that small businesses drive the U.S. economy. According to the Small Business Administration (SBA), the United States has 30.7 million small businesses, employing almost 50% of the private workforce as of 2019. Furthermore, small businesses create 1.5 million jobs annually and account for 64% of new jobs in the United States.
SBA defines a small business as an entity that is independently owned and operated, exerts little influence in its industry, and (with minimal exceptions) has fewer than 500 employees. Small businesses in the United States generate about 50% of our GDP. In particular, women-owned businesses represent a significant portion of our economy. There are nearly 13 million women-owned businesses in the United States, employing about 9 million people and generating $1.9 trillion in revenues. Total employment in women-owned businesses grew by 8% between 2019 and 2020, while the total for all businesses was only 2%. Similarly, over the last 10 years, minority business enterprises accounted for more than 50% of the 2 million new businesses started in the United States, and created 4.7 million jobs. There are now more than 4 million minority-owned companies in the United States, with annual sales totaling close to $700 billion.