How Many Businesses Are There in America?

Understanding the number of businesses in America provides insight into the economic landscape and can help in various analyses and decision-making processes. The business environment in the United States is diverse, encompassing a wide range of industries and sizes, from small startups to large multinational corporations.

How many businesses are there in America? According to the U.S. Small Business Administration (SBA), there are approximately 31.7 million small businesses in the United States. This figure represents 99.9% of all businesses in the country. In addition to small businesses, there are also about 20,000 large businesses, which employ a significant portion of the workforce and contribute substantially to the economy.

Small Businesses in America

Small businesses are a crucial part of the American economy. They employ nearly half of the U.S. workforce, accounting for 60.6 million jobs. These businesses span various sectors, including retail, healthcare, construction, and professional services. The SBA defines a small business as an independent business with fewer than 500 employees. Despite their size, small businesses play a vital role in innovation and job creation.

Large Businesses in America

Large businesses, though fewer in number, have a significant impact on the economy. With around 20,000 large businesses, these organizations often have extensive resources, global reach, and the ability to influence market trends. They typically employ more than 500 people and are found in industries such as technology, finance, manufacturing, and healthcare. Large businesses contribute to economic stability and growth through substantial investments and large-scale operations.

The presence of both small and large businesses creates a dynamic and competitive market environment. Each type of business, regardless of size, plays a unique role in driving the economy forward. The combination of entrepreneurial spirit in small businesses and the robust infrastructure of large businesses ensures a balanced and thriving economic landscape in America.