How Many Small Businesses Are There in the US in 2024?
The strengthening United States economy in recent years has nurtured many opportunities for entrepreneurs, with the number of small businesses in the US on the rise. In this article, we take a look at key small business statistics, including the number of small businesses in the US.
Key small business statistics
- The number of small businesses in the US reached 34.8 million in 2024, marking a 4.5% annual increase.
- Small businesses make up 99.9% of all US businesses.
- Out of the total small businesses, approximately 28.5 million (81.9%) are non-employer firms.
- Small businesses employ 59 million workers, accounting for 45.9% of the US workforce.
- California leads the nation with 4.2 million small businesses, comprising 12.1% of all US small businesses. Texas and Florida follow, each with 3.3 million small businesses.
How many small businesses are there in the US: table
|
Year |
Number of small businesses in the US |
Annual change |
|
2017 |
29.6 million |
|
|
2018 |
30.2 million |
+2.0% |
|
2019 |
30.7 million |
+1.7% |
|
2020 |
31.7 million |
+3.3% |
|
2021 |
32.5 million |
+2.5% |
|
2022 |
33.2 million |
+2.2% |
|
2023 |
33.3 million |
+0.3% |
|
2024 |
34.8 million |
+4.5% |
Number of small businesses in the US: 2017–2024
In 2024, the number of small businesses in the US reached 34.8 million, making up nearly all (99.9%) US businesses.
The increase in the number of small businesses in the US in 2024 is representative of the sustained growth as it marks a 4.5% increase from the previous year and an overall growth of 17.6% from 2017.
According to the US Small Business Administration, “small businesses” are defined as “firms with fewer than 500 employees.” The report shows that there are around 28.5 million small businesses (81.9% of the total) that do not hire any employees. 5.7 million have fewer than 20 employees, and 607,000 businesses have under 500 employees.
Small business employees in the US
Small enterprises play a significant role in the US economy and are vital to economic development and job creation.
Although the majority of small businesses hire fewer than 100 employees, they are responsible for millions of new jobs created over the past few years.
In fact, there are currently 59 million small business employees in the US, which make up just under half (45.9%) of the US workforce.
States with the biggest number of small businesses in the US
With San Francisco, Los Angeles, and San Jose all featuring in the top 10 cities in the world that receive the most investment from venture capitalists, it should come as no surprise that California has the highest number of small businesses.
With 4.2 million small businesses in California, it is home to 12.1% of the total number of small businesses in the US.
Here are the states with the most number of small businesses in the US (as of 2024):
- California: 4.2 million
- Texas: 3.3 million
- Florida: 3.3 million
- New York: 2.2 million
- Georgia: 1.3 million
California’s small business employees make up 47.1% of the state’s total employees, which is higher than the national average. Over the past year, establishments in California added a total of 1.9 million jobs. Of these, 1.3 million (around two-thirds) were from small businesses.