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Small businesses are the backbone of the American economy, but how many small businesses are there in the US today? With new entrepreneurs launching every day and digital tools making it easier than ever to start a company, the numbers keep changing. Updated statistics matter because they show where the economy is heading, which industries are growing, and how entrepreneurs are shaping the future of work.
From solo founders to fast-growing ecommerce brands powered by platforms like Shopify and tools such as Spocket, small businesses drive innovation, create jobs, and strengthen communities. This report breaks down the latest verified numbers, trends, and insights to help you understand the true scale of America’s small business landscape.
Understanding how the U.S. government defines a small business is essential before exploring how many small businesses are in the US. The Small Business Administration (SBA) sets the size standards that determine what qualifies as a small company in each industry.
According to the U.S. Small Business Administration (SBA), a business is considered “small” based on:
These standards vary by industry, so a “small business” in retail is defined differently from one in manufacturing or healthcare.
The U.S. Census Bureau categorizes microbusinesses as extremely small firms run by one person or a very small team.
Microbusinesses include:
Yes — all of them are included in the official totals used to report how many small businesses are in the US.
This includes:
When asking “how many small businesses in the US”, the latest federal data give a clear, up-to-date picture of the scale and breakdown of these firms.
To understand the rise in entrepreneurship and how many small businesses in the US exist today, it’s important to look at year-over-year growth based on verified federal data. Recent reports from the U.S. Census Bureau and SBA Office of Advocacy show a strong upward trend in business formation, especially after 2020.
According to the U.S. Census Bureau’s Business Dynamics Statistics, the total number of small businesses has increased consistently for a decade, with especially sharp rises after the pandemic.
Pew Research Center also reports:
Based on Chamber of Commerce data, these industries show the strongest growth trends:
Understanding how many small businesses in the US contribute to the economy provides a clearer picture of their true impact. Small businesses are not just numerous—they are fundamental drivers of U.S. economic performance, job creation, and innovation.
Small businesses play a major role in national productivity. According to the SBA’s GDP analysis:
Per SBA and U.S. Census economic data, these industries lead small-business GDP contribution:
These sectors collectively make up the majority of small-business-driven GDP, with professional services showing the fastest growth.
These statistics highlight that:
Small businesses in the United States are incredibly diverse. Understanding how many small businesses in the US exist is important—but knowing who owns them provides deeper insights into the country’s entrepreneurial landscape. Pew Research offers a clear picture of ownership demographics.
While some small businesses are family-run, most are not. In 2021, only 27% of small businesses reported being family-owned, while 73% were independently owned.
Traditional “mom and pop shops” also represent a smaller portion of the landscape. Only 10% of small businesses were jointly owned and equally operated by spouses, while another 11% were jointly owned but separately operated—most often with men serving as the primary operator.
Franchises are even less common. Just 5% of small businesses reported being fully or partially operated as franchises in 2021.
When it comes to demographics, ownership skews male:
Racial and ethnic ownership data shows that 85% of small businesses were majority-owned by White adults. Smaller shares were majority-owned by Asian Americans (11%), Hispanic adults (7%), and Black or African American adults (3%). Just 1% were majority-owned by American Indian, Alaska Native, Native Hawaiian, or Pacific Islander adults.
States with the largest populations and strongest economic activity tend to host the highest number of small businesses. For context, the SBA state profiles provide detailed metrics on how many small businesses in the US are distributed geographically.
Small businesses continue to power the U.S. economy, shaping communities, creating jobs, and driving innovation across every industry. With millions of new ventures launching each year, the small-business landscape is more dynamic and opportunity-rich than ever. Whether you’re exploring ecommerce, freelancing, or service-based entrepreneurship, starting small has never been easier. For aspiring online sellers, tools like Spocket make it simple to launch a U.S. dropshipping business with fast-shipping suppliers and low startup costs. As the number of small businesses in the U.S. continues to grow, there has never been a better time to take the first step.
