In 2023, U.S. small businesses employed 61.2 million workers, nearly half of the private workforce, and their employment rose by 3.1% for an additional 1.9 million jobs. At the same time, smaller firms represent 99.9% of all U.S. businesses while still paying $1.5 trillion in payroll each year. The results are even more striking when you look at who owns these companies and where the jobs are concentrated.
Key Takeaways
- 30.7% of small business owners in U.S. are Hispanic or Latino, employing diverse workforce
- Women-owned small businesses in U.S. employ 9.5 million workers (2022)
- Veteran-owned small firms employ 5.8 million people in U.S.
- Small businesses contribute 44% to U.S. GDP via employment and output
- U.S. small firms pay $1.5 trillion in payroll annually, 41% of private business payroll
- Small businesses drive 65% of new innovations, boosting employment growth
- Small businesses with fewer than 500 employees accounted for 99.9% of all U.S. firms and employed 61.7 million people in 2022, representing 46.4% of private sector employment
- In 2023, U.S. small businesses employed 61.2 million workers, comprising nearly half of the private workforce
- Small firms (under 500 employees) provided 62.7% of net new jobs from 1993 to 2019 in the U.S.
- U.S. small businesses in accommodation/food services employ 10.1 million workers (58% of sector)
- Small firms account for 79.9% of jobs in other services industry in U.S., employing 5.2 million
- In U.S. construction, small businesses employ 2.0 million workers (80.1% of sector employment)
- From 2012 to 2022, U.S. small businesses added 17.2 million net new jobs, averaging 1.72 million per year
- Small businesses created 1.6 million jobs in 2022 alone in the U.S.
- Between 1995 and 2022, small firms generated 66% of net job growth in the U.S.
Small businesses employ nearly half the private workforce and drive most job growth and innovation.
Related reading
01 · Category
Demographic Characteristics27 stats
01
30.7% of small business owners in U.S. are Hispanic or Latino, employing diverse workforce
02
Women-owned small businesses in U.S. employ 9.5 million workers (2022)
03
Veteran-owned small firms employ 5.8 million people in U.S.
04
Black-owned U.S. small businesses employ 1.2 million workers (2021 data)
05
Asian-owned small businesses employ 2.8 million in U.S., highest revenue per firm
06
58% of U.S. small business employees are under 50 years old
07
Small businesses employ 40% of U.S. workforce aged 55+
08
Immigrant entrepreneurs own 25% of new U.S. small businesses, employing millions
09
Rural small businesses employ 20% of non-metro workforce, 7 million jobs
10
Urban small firms employ 80% of city workforce in services
11
Millennial-owned small businesses (under 40) employ 15 million in U.S.
12
Gen Z starting small businesses employ growing share of young workers
13
In EU, 65% of SME owners are aged 50+, employing older workforce
14
UK small business owners 40% female, employing diverse staff
15
35% Canadian small business owners immigrants, employing 40% immigrant workers
16
Australian small business 38% women-owned, employing 50% women
17
Indian MSMEs 15% women-owned, employing 30% women in rural areas
18
Brazilian small businesses 40% owned by women, key for female employment
19
South African SMMEs 30% black women-owned, employing township youth
20
Mexican PyMEs 25% women-led, employing 35% female workforce
21
Japanese SMEs 70% family-owned, employing multi-generational workers
22
German SME owners average age 52, employing skilled apprentices
23
French small firms 35% women entrepreneurs, gender-balanced employment
24
Italian SMEs 45% family-run, employing regional demographics
25
Spanish PyMEs 38% women-owned, high female employment rate
26
Dutch small business 42% women owners, diverse migrant employment
27
Swedish SMEs 50% women-owned, highest gender equality in employment
Interpretation
Demographic Characteristics Interpretation
Demographic characteristics show a youthful and increasingly diverse small business workforce, with 58% of U.S. small business employees under 50 and Hispanic or Latino owners making up 30.7% while women-owned firms employ 9.5 million workers.
02 · Category
Economic Impact26 stats
01
Small businesses contribute 44% to U.S. GDP via employment and output
02
U.S. small firms pay $1.5 trillion in payroll annually, 41% of private business payroll
03
Small businesses drive 65% of new innovations, boosting employment growth
04
During recessions, small firms account for 60% of job resilience
05
Small business exports support 11.1 million U.S. jobs (41% of exporters)
06
SBA loans to small businesses preserved/supported 2 million jobs in FY2022
07
Small firms generate $8 trillion in U.S. economic activity yearly through employment
08
In supply chains, small businesses enable 50% of large firm jobs indirectly
09
Small business tax contributions $700 billion annually to U.S. federal revenue
10
Community banks lend 50% to small businesses, supporting local employment
11
Globally, SMEs contribute 50% GDP, 60-70% employment in developing economies
12
EU SMEs generate 52% added value, sustaining 90 million jobs indirectly
13
UK small businesses contribute 52% private sector turnover, £2.4 trillion
14
Canadian SMBs 42% GDP, key to employment stability
15
Australian small business 33% GDP, multiplier effect on jobs
16
Indian MSMEs 30% GDP, 45% exports via employment chains
17
Brazilian small firms 30% GDP, 27% formal employment impact
18
South African SMMEs 40% GDP, poverty reduction via jobs
19
Mexican PyMEs 52% GDP, 72% employment formal/informal
20
Japanese SMEs 50% GDP, backbone of employment stability
21
German SMEs Mittelstand contribute 55% GDP, export-driven jobs
22
French small businesses 43% GDP value added, employment intensive
23
Italian SMEs 67% GDP, regional economic anchors
24
Spanish PyMEs 65% GDP, tourism/services employment driver
25
Dutch SMEs 54% GDP, innovation-employment link
26
Swedish small firms 60% GDP private sector, sustainable jobs
Interpretation
Economic Impact Interpretation
From an economic impact perspective, small businesses power job and output growth at scale with 44% of U.S. GDP tied to employment and output and 41% of private payroll, while also sustaining resilience in downturns by accounting for 60% of job resilience.
03 · Category
Employment Levels30 stats
01
Small businesses with fewer than 500 employees accounted for 99.9% of all U.S. firms and employed 61.7 million people in 2022, representing 46.4% of private sector employment
02
In 2023, U.S. small businesses employed 61.2 million workers, comprising nearly half of the private workforce
03
Small firms (under 500 employees) provided 62.7% of net new jobs from 1993 to 2019 in the U.S.
04
As of Q4 2022, there were 33.2 million small businesses in the U.S. employing about 60 million people
05
Small businesses account for 44% of U.S. economic activity through employment and revenue combined
06
In the U.S., 89.0% of small businesses have fewer than 20 employees, employing the majority of small business workers
07
Small businesses employed 47.1% of the private workforce in the U.S. as of 2021 data updated in 2023
08
Nonemployer small businesses numbered 28.4 million in 2022, but employer small firms employed 59.1 million
09
Small businesses (1-499 employees) made up 99.7% of U.S. firms, employing 58.9 million in 2020
10
In 2023, small business employment reached 61.7 million, up 2.3% from 2022
11
U.S. small firms employed 12.4 million in manufacturing alone in 2022
12
Small businesses provided jobs to 6.1 million veterans in the U.S. workforce in recent years
13
In 2022, small businesses employed 55% of the U.S. workforce when including self-employed
14
Employer small businesses totaled 6.3 million, employing 60.5 million people in 2023 estimates
15
Small businesses account for 42.9% of jobs in high-tech sectors with 1.1 million high-tech firms
16
In the EU, SMEs (small and medium enterprises) employed 66.8% of the private sector workforce in 2022
17
UK small businesses (0-49 employees) employed 12.6 million people, 59% of private sector jobs in 2023
18
Canadian small businesses employed 10.4 million people, 68% of private labour force in 2022
19
Australian small businesses (<20 employees) employed 4.8 million, 68% of workforce in 2023
20
Indian MSMEs employed over 110 million people in 2022
21
Small businesses in Brazil (up to 19 employees) employed 22 million in formal sector 2022
22
South African small businesses employed 60% of workforce, about 9 million jobs in 2023
23
Mexican small businesses (<50 employees) employed 4.5 million formally in 2022
24
Japanese small businesses (<300 employees) employed 70% of workforce, 38 million in 2023
25
German SMEs employed 58% of workforce, 15.8 million in 2022
26
French small firms (<50 employees) employed 7 million, 50% private jobs 2023
27
Italian SMEs employed 82% of workforce, 11 million employees 2022
28
Spanish small businesses (<50) employed 7.8 million, 65% total employment 2023
29
Dutch SMEs employed 72% workforce, 4.2 million jobs 2022
30
Swedish small firms (<50) employed 1.3 million, 60% private sector 2023
Interpretation
Employment Levels Interpretation
For the Employment Levels category, the data show that small businesses under 500 employees account for 99.9% of U.S. firms and employ about 61 to 62 million people, and this concentration is driven by the fact that 89.0% of small businesses have fewer than 20 employees.
More related reading
04 · Category
Industry Distribution25 stats
01
U.S. small businesses in accommodation/food services employ 10.1 million workers (58% of sector)
02
Small firms account for 79.9% of jobs in other services industry in U.S., employing 5.2 million
03
In U.S. construction, small businesses employ 2.0 million workers (80.1% of sector employment)
04
U.S. small businesses dominate administrative services with 84.5% employment share, 4.8 million jobs
05
Retail trade small businesses employ 4.5 million (50.2% of sector) in U.S.
06
In U.S. health care/social assistance, small firms employ 14.2 million (52.3%)
07
U.S. small manufacturing businesses employ 5.8 million (47.5% of manufacturing jobs)
08
Professional/scientific/technical services: small businesses employ 6.7 million (85.3%) in U.S.
09
U.S. wholesale trade small firms employ 2.1 million (32.4% share)
10
Arts/entertainment/recreation: small businesses 88.7% employment, 2.3 million jobs U.S.
11
In EU, SMEs represent 99% of businesses, 85% employment in services sector
12
UK small businesses 60% employment in wholesale/retail/construction/motor trades
13
Canadian small businesses 70% in services, employing 7.3 million
14
Australian small firms 75% in property/business services, 2.5 million jobs
15
Indian MSMEs 45% in manufacturing, 30% services, employing 50 million
16
Brazilian small businesses 50% in commerce/services, 12 million jobs
17
South African SMMEs 60% services, 5.5 million employment
18
Mexican PyMEs 70% services/commerce, 3.2 million formal jobs
19
Japanese SMEs 55% manufacturing, 20 million jobs
20
German SMEs 99% non-financial business economy, 60% manufacturing employment
21
French small enterprises 80% services, 5.5 million jobs
22
Italian SMEs 95% services/manufacturing, 9 million employment
23
Spanish PyMEs 85% services, 6.5 million jobs
24
Dutch small firms 70% trade/services, 3 million employment
25
Swedish SMEs 75% services, 1 million jobs
Interpretation
Industry Distribution Interpretation
Across major U.S. industries, small businesses account for roughly half to four fifths of employment in several sectors, from 84.5% in administrative services to 80.1% in construction and 58% in accommodation and food services, showing they are the dominant job engine behind the industry distribution of small business employment.
05 · Category
Job Growth30 stats
01
From 2012 to 2022, U.S. small businesses added 17.2 million net new jobs, averaging 1.72 million per year
02
Small businesses created 1.6 million jobs in 2022 alone in the U.S.
03
Between 1995 and 2022, small firms generated 66% of net job growth in the U.S.
04
U.S. small business employment grew by 3.1% in 2023, adding approximately 1.9 million jobs
05
Post-pandemic, small businesses accounted for 62% of job recovery from 2020-2023 in U.S.
06
From Q1 2020 to Q1 2023, small firms added back 80% of jobs lost during COVID
07
Small businesses in the U.S. construction sector added 250,000 jobs in 2022
08
U.S. small business health care employment grew by 4.5% in 2022, adding 400,000 jobs
09
Over the last decade (2013-2023), small businesses created 12 million net new jobs in U.S.
10
Small firms drove 75% of job growth in leisure and hospitality post-2021 recovery
11
In 2023, U.S. small business payroll employment rose 2.4% year-over-year
12
Small businesses accounted for 55% of new jobs in professional services from 2018-2022
13
During 2021-2023, small firms net added 8 million jobs amid economic rebound
14
U.S. small retail businesses grew employment by 1.8% in 2023, adding 150,000 positions
15
Small manufacturing firms added 180,000 jobs in 2023 U.S.
16
From 2000-2020, small businesses generated 70% of gross job creation in U.S.
17
In EU, SMEs created 85% of new jobs between 2013-2022
18
UK small businesses added 500,000 net jobs in 2022-2023 recovery
19
Canadian small businesses grew employment by 3.2% in 2023, adding 350,000 jobs
20
Australian micro-small businesses added 200,000 jobs in 2023
21
Indian MSMEs created 4.5 million new jobs under schemes in 2022-23
22
Brazilian small firms net job growth of 1.2 million in 2022 formal sector
23
South African small businesses added 300,000 jobs via support programs 2023
24
Mexican small enterprises employment up 2.5% in 2023, +250k jobs
25
Japanese SMEs job growth 1.8% in 2023, adding 700,000 positions
26
German SMEs net new jobs 400,000 in 2022 despite challenges
27
French small business employment +2.1% in 2023, 150k new jobs
28
Italian SMEs created 200,000 net jobs in 2023 recovery
29
Spanish small firms added 300,000 jobs in 2023, 2.4% growth
30
Dutch SMEs employment growth 2.7% in 2023, +100k jobs
Interpretation
Job Growth Interpretation
Across the Job Growth category, U.S. small businesses have been a major driver of hiring, adding 17.2 million net new jobs from 2012 to 2022 and even rebounding strongly after COVID by putting back 80% of the jobs lost from Q1 2020 to Q1 2023.
report visual · Key figures
Small Businesses as a Job Engine (U.S.)
Employment rebounds and grows steadily, with small firms driving a large share of private hiring and recovery over recent years.
2023
In 2023, U.S. small businesses employed 61.2 million workers, comprising nearly half of the private workforce
2.3%
In 2023, small business employment reached 61.7 million, up 2.3% from 2022
4.5%
U.S. small business health care employment grew by 4.5% in 2022, adding 400,000 jobs
2.4%
In 2023, U.S. small business payroll employment rose 2.4% year-over-year
Reference
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
Elena Vasquez. (2026, February 13). Small Business Employment Statistics. Gitnux. https://gitnux.org/small-business-employment-statistics
MLA
Elena Vasquez. "Small Business Employment Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/small-business-employment-statistics.
Chicago
Elena Vasquez. 2026. "Small Business Employment Statistics." Gitnux. https://gitnux.org/small-business-employment-statistics.
Sources & references
43 datasets cited across this report · attribution is report-level