Chart of the Number of Small Business Employees in the US in 2024

How Many People Work for Small Businesses?

As more and more small businesses in the United States are established, the number of small business employees has also increased. However, recent small business statistics reveal that while the number of small businesses in the US has risen consistently over the past few years, the growth in the number of small business employees has not kept the same momentum.

In this article, we dive into key small business statistics focusing on employee numbers.

Small business: number of employees

Year	Number of small business employees	Annual change
2017	57.9 million
2018	58.9 million	+1.7%
2019	59.9 million	+1.7%
2020	60.6 million	+1.2%
2021	61.2 million	+1.0%
2022	61.7 million	+0.8%
2023	61.6 million	-0.2%
2024	59.0 million	-4.2%

Number of employees in small businesses: 2017–2024

In 2024, the number of employees in a small business in the US fell to 59 million. This means that small business employees make up 45.9% of the total number of US employees.

This marks a 4.2% decrease from 2023’s 61.6 million and is the second consecutive annual fall. Prior to this, the last time the number of small business employees rose was in 2022, growing by a marginal 0.8%, to 61.7 million.

What is the average number of employees in a small business?

The average small business in the US has very few employees, with many operating as one-person ventures. According to the US Small Business Administration, “small businesses” are defined as companies that hire fewer than 500 employees.

Small businesses statistics from 2024 show that, of the 34.8 million small businesses in the US, the majority—28.5 million (81.9%)—have no employees at all, functioning as sole proprietorships. About 5.7 million small businesses have between 1 and 19 employees, while just 607,000 employ between 20 and 499 people.

Number of employees in a small business: ranked by state

As the US’s most populous state with nearly 40 million residents, it should come as no surprise that the West Coast state of California is also home to the biggest number of small business employees. There are 7 million of them in California, which is 47.1% of the state’s total number of employees.

The state with the second-highest number of employees in a small business is Texas. At 4.9 million, they represent 44.9% of the state’s total number of employees. New York has the third most small business employees with 3.7 million, while Florida comes in fourth with 3.6 million. Pennsylvania is in fifth place with 2.4 million.

At the bottom of the list, Wyoming is the state with the fewest small business employees. Here are the five states with the fewest employees in a small business:

Wyoming: 129,426
Alaska: 133,542
Vermont: 147,457
North Dakota: 189,834
Delaware: 201,082

Want to learn more?

How Many People Work For Small Businesses FAQ

What share of US workers are employed by small businesses?

Small businesses employ about 59.0 million people in the US, which is 45.9% of all US employees in 2024. That's close to half the workforce. The count peaked at 61.7 million in 2022 before declining.

Is the number of small business employees growing or shrinking?

The number of small business employees has fallen two years in a row. It dipped 0.2% in 2023 to 61.6 million, then dropped 4.2% in 2024 to 59.0 million. Before that, annual growth slowed from 1.7% in 2019 to 0.8% in 2022.

How does the government define a small business?

The US Small Business Administration defines a small business as a company with fewer than 500 employees. Most fall far below that cap. About 5.7 million have 1 to 19 employees, while only 607,000 have between 20 and 499.

How many small businesses have no employees?

About 28.5 million of the 34.8 million small businesses in the US have no employees, or 81.9%. These businesses typically operate as sole proprietorships, with the owner doing the work alone.

Which state has the most small business employees?

California has the most small business employees, at 7 million, or 47.1% of the state's total employees. Texas follows with 4.9 million and New York has 3.7 million. Wyoming has the fewest, with 129,426.