Did you know that America’s small businesses are the quiet engine behind nearly half of the nation's economic output, generating a staggering $18.8 trillion in revenue in 2022?
Key Takeaways
- In 2022, U.S. small businesses collectively generated $18.8 trillion in revenue, accounting for 43.5% of total U.S. private-sector GDP
- Small businesses with fewer than 20 employees contributed 41% of U.S. small business revenue in 2021
- The average annual revenue for U.S. small businesses was approximately $1.2 million in 2022, varying by industry
- Retail trade small businesses generated $5.4 trillion U.S. revenue in 2022
- Construction sector small firms accounted for 78% of industry revenue at $2.1 trillion in 2021 U.S.
- Manufacturing small businesses generated $2.3 trillion or 42% of sector revenue in U.S. 2022
- California small businesses generated $2.9 trillion in revenue in 2022
- Texas small firms accounted for $2.1 trillion U.S. small business revenue in 2021
- New York small businesses generated $1.8 trillion revenue in 2022
- Small businesses owned by women generated 48% higher revenue growth than male-owned in 2022 U.S.
- Minority-owned small businesses had average revenue of $1.1 million vs $1.4 million non-minority in 2021
- Veteran-owned small firms generated $1.2 trillion U.S. revenue in 2022
- Small business revenue grew 12.4% from 2019 to 2020 despite pandemic dip U.S.
- U.S. small business revenue increased 19.8% from 2020 to 2021 recovery year
- From 2018-2022, small business revenue CAGR was 7.2% in U.S.
Small businesses drive the American economy, generating trillions in revenue across diverse industries.
Demographic Revenue Insights
- Small businesses owned by women generated 48% higher revenue growth than male-owned in 2022 U.S.
- Minority-owned small businesses had average revenue of $1.1 million vs $1.4 million non-minority in 2021
- Veteran-owned small firms generated $1.2 trillion U.S. revenue in 2022
- Small businesses owned by individuals under 35 averaged $850,000 revenue in 2021 U.S.
- Over-55 owner small firms had median revenue of $1.6 million in 2022
- Hispanic-owned small businesses grew revenue 15% YoY in U.S. 2021
- Black-owned small firms averaged $720,000 annual revenue in 2022 U.S.
- Asian-owned small businesses generated highest average revenue at $1.9 million in 2021
- Family-owned small firms accounted for 70% of small business revenue in U.S. 2022
- Immigrant-owned small businesses generated $1.3 trillion U.S. revenue in 2021
- LGBTQ+-owned small firms saw 12% revenue increase in 2022 U.S.
- Rural small business owners averaged $950,000 revenue vs $1.3M urban in 2021
- First-generation owners small firms had 8% lower revenue than multi-gen in 2022 U.S.
- Small businesses with female CEOs generated $1.05 million average revenue 2021
- Male-owned small firms dominated revenue at 82% total U.S. small business revenue 2022
- Native American-owned small businesses averaged $680,000 revenue in 2021 U.S.
- Small firms owned by college grads had 25% higher revenue than non-grads in 2022
- Multi-owner small businesses averaged $1.7 million revenue vs $900K solo in 2021 U.S.
- Small businesses in suburbs generated 45% of demographic revenue share U.S. 2022
- Pacific Islander-owned small firms had $550,000 average revenue in 2021 U.S.
- Serial entrepreneur-owned small businesses saw 18% higher revenue growth 2022
- Small firms with disabled owners generated $920 billion total U.S. revenue 2021
- Gen Z owned small businesses averaged $620,000 revenue in 2022 U.S.
- Boomer-owned small firms contributed 35% of total small revenue U.S. 2021
Demographic Revenue Insights Interpretation
It seems the road to a thriving small business is anything but a straight line, revealing a complex mosaic where veteran-owned firms rake in trillions, women-led businesses show blistering growth, and family-owned shops anchor the economy, yet persistent gaps in revenue by race, location, and background stubbornly remind us that the playing field is far from level.
Geographic Revenue Variations
- California small businesses generated $2.9 trillion in revenue in 2022
- Texas small firms accounted for $2.1 trillion U.S. small business revenue in 2021
- New York small businesses generated $1.8 trillion revenue in 2022
- Florida small firms had $1.4 trillion in revenue contributions in 2021 U.S.
- Illinois small businesses generated $950 billion revenue in 2022
- Pennsylvania small firms accounted for $780 billion U.S. revenue 2021
- Ohio small businesses generated $720 billion revenue in 2022
- Georgia small firms had $650 billion in revenue 2021
- North Carolina small businesses contributed $610 billion U.S. revenue 2022
- Michigan small firms generated $580 billion revenue in 2021
- New Jersey small businesses had $550 billion revenue share 2022
- Virginia small firms accounted for $520 billion U.S. revenue 2021
- Washington small businesses generated $510 billion revenue in 2022
- Arizona small firms had $480 billion in revenue 2021
- Massachusetts small businesses contributed $470 billion U.S. revenue 2022
- Tennessee small firms generated $450 billion revenue in 2021
- Indiana small businesses had $440 billion revenue share 2022
- Missouri small firms accounted for $420 billion U.S. revenue 2021
- Maryland small businesses generated $410 billion revenue in 2022
- Wisconsin small firms had $400 billion in revenue 2021
- Colorado small businesses contributed $390 billion U.S. revenue 2022
- Minnesota small firms generated $380 billion revenue in 2021
- South Carolina small businesses had $370 billion revenue share 2022
- Alabama small firms accounted for $350 billion U.S. revenue 2021
- Louisiana small businesses generated $340 billion revenue in 2022
- Kentucky small firms had $330 billion in revenue 2021
- Oregon small businesses contributed $320 billion U.S. revenue 2022
- Oklahoma small firms generated $310 billion revenue in 2021
- Connecticut small businesses had $300 billion revenue share 2022
Geographic Revenue Variations Interpretation
The nation's economic engine roars with a distinctively American accent, proving that while California might be the sun-kissed billionaire of the small business world, the collective heartland hums with the formidable, indispensable power of a thousand thriving main streets.
Overall Revenue Figures
- In 2022, U.S. small businesses collectively generated $18.8 trillion in revenue, accounting for 43.5% of total U.S. private-sector GDP
- Small businesses with fewer than 20 employees contributed 41% of U.S. small business revenue in 2021
- The average annual revenue for U.S. small businesses was approximately $1.2 million in 2022, varying by industry
- U.S. small business revenue grew by 9.5% year-over-year from 2021 to 2022
- Nonemployer small businesses generated $1.58 trillion in U.S. revenue in 2021
- Employer small businesses accounted for $15.2 trillion of U.S. revenue in 2022
- Small businesses represented 99.9% of U.S. firms and generated 44% of GDP revenue in 2021
- U.S. small retail businesses averaged $1.5 million in annual revenue in 2022
- Construction small businesses in the U.S. had median revenue of $2.1 million in 2021
- U.S. small businesses saw revenue recovery to 98% of pre-pandemic levels by Q4 2022
- Professional services small firms generated $4.3 trillion in U.S. revenue in 2021
- U.S. small manufacturing businesses averaged $5.6 million in revenue per firm in 2022
- Hospitality small businesses contributed $1.1 trillion to U.S. revenue in 2022 post-recovery
- U.S. small tech firms under 500 employees generated $2.8 trillion in 2021 revenue
- Wholesale trade small businesses had $3.2 trillion U.S. revenue share in 2022
- U.S. small businesses in transportation generated $1.4 trillion in revenue in 2021
- Average revenue for U.S. small administrative firms was $950,000 in 2022
- U.S. small education services firms averaged $1.8 million revenue in 2021
- Health care small businesses generated $2.9 trillion U.S. revenue in 2022
- U.S. small arts/entertainment firms had $650 billion revenue in 2021
- Accommodation/food small businesses recovered to $1.2 trillion U.S. revenue by 2022
- U.S. small other services firms generated $1.05 trillion in 2021 revenue
- Mining small businesses averaged $4.2 million revenue per U.S. firm in 2022
- U.S. small utilities firms contributed $820 billion to revenue in 2021
- Information sector small businesses generated $1.7 trillion U.S. revenue in 2022
- U.S. small finance/insurance firms averaged $2.4 million revenue in 2021
- Real estate small businesses generated $3.1 trillion U.S. revenue in 2022
- Management small firms had $1.9 trillion U.S. revenue share in 2021
- U.S. small business revenue per employee averaged $250,000 in 2022
Overall Revenue Figures Interpretation
Don't let the "small" in small business fool you—these economic powerhouses are the heavyweight champions of the private sector, collectively carrying nearly half of the nation's GDP on their deceptively sturdy backs.
Sector-Specific Revenue
- Retail trade small businesses generated $5.4 trillion U.S. revenue in 2022
- Construction sector small firms accounted for 78% of industry revenue at $2.1 trillion in 2021 U.S.
- Manufacturing small businesses generated $2.3 trillion or 42% of sector revenue in U.S. 2022
- Professional/scientific/technical services small firms had $4.8 trillion U.S. revenue in 2021
- Health care/social assistance small businesses generated $3.2 trillion U.S. revenue in 2022
- Administrative/support small firms contributed $2.1 trillion to U.S. sector revenue in 2021
- Accommodation/food services small businesses had $1.3 trillion U.S. revenue in 2022
- Wholesale trade small firms generated $4.5 trillion or 55% of sector U.S. revenue 2021
- Finance/insurance small businesses accounted for $2.7 trillion U.S. revenue in 2022
- Real estate/rental small firms had $3.5 trillion U.S. sector revenue share in 2021
- Transportation/warehousing small businesses generated $1.6 trillion U.S. revenue 2022
- Information sector small firms contributed $1.9 trillion to U.S. revenue in 2021
- Arts/entertainment/recreation small businesses had $780 billion U.S. revenue 2022
- Educational services small firms generated $950 billion U.S. sector revenue 2021
- Other services small businesses accounted for $1.2 trillion U.S. revenue in 2022
- Mining/quarrying/oil/gas small firms had $650 billion U.S. revenue share 2021
- Utilities small businesses generated $450 billion U.S. sector revenue in 2022
- Management companies small firms contributed $2.0 trillion U.S. revenue 2021
- Agriculture/forestry/fishing small businesses had $380 billion U.S. revenue 2022
Sector-Specific Revenue Interpretation
While "small" may be in their name, their economic impact is anything but, as America's small businesses prove they are not merely the backbone but the lion's share of the economy, generating trillions from retail to manufacturing and healthcare, effectively doing everything from building our homes and curing our ills to feeding us and keeping us entertained.
Temporal Revenue Trends
- Small business revenue grew 12.4% from 2019 to 2020 despite pandemic dip U.S.
- U.S. small business revenue increased 19.8% from 2020 to 2021 recovery year
- From 2018-2022, small business revenue CAGR was 7.2% in U.S.
- Pre-pandemic 2019 U.S. small revenue peaked at $17.5 trillion
- 2020 saw U.S. small business revenue drop 5.3% due to COVID-19
- Q1 2023 small business revenue growth slowed to 4.1% YoY U.S.
- From 2017-2021, nonemployer small revenue rose 15% to $1.58T U.S.
- Small business revenue share of GDP stable at 43-44% 2019-2022 U.S.
- 2022 inflation boosted nominal small revenue by 8.7% U.S.
- Post-2021, small e-commerce revenue surged 25% YoY to 2022 U.S.
- From 2016-2020, small construction revenue grew 11% U.S.
- Tech small business revenue doubled from 2015-2022 U.S.
- 2023 forecast shows 6.5% small revenue growth U.S.
- Recession 2008-2009 saw small revenue decline 12% U.S.
- 2010-2015 recovery period small revenue CAGR 5.8% U.S.
- Pandemic 2020 Q2 small revenue fell 32% seasonally adjusted U.S.
- By 2024 projection, small revenue to hit $20.5 trillion U.S.
- 2021-2022 saw 22% revenue rebound in hospitality small U.S.
- Long-term 2000-2022 small revenue grew 180% nominal U.S.
- Retail small revenue online share rose from 10% 2019 to 28% 2022 U.S.
- Manufacturing small revenue up 14% from 2020-2022 U.S.
- Services small sector revenue increased 9% annually 2019-2022 U.S.
- Non-cyclical small revenue stable +3% YoY during 2022 U.S.
- Cyclical small industries revenue volatile +11% 2021-2022 U.S.
- Small business revenue per capita rose 6% from 2021-2022 U.S.
Temporal Revenue Trends Interpretation
Even with the pandemic's gut punch, small businesses have demonstrated a remarkable ability to duck, weave, and grow, proving they're not just the backbone of the economy but also its most stubborn and adaptive fighter.
Sources & References
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- Reference 4FEDERALRESERVEfederalreserve.govVisit source
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