When you think of businesses in the U.S., maybe Wal-Mart, Johnson and Johnson, and GE come to mind, mega firms that are omnipotent in our daily lives. But for every General Motors, there are 100,000 small businesses you’ve never heard of run by people just like you and I. These small business owners wake up early, work long hours, and go home late. They work tirelessly to provide quality goods and services and do their part strengthening the fabric of commerce in this country. Small business owners, whether a mom-and-pop hardware store on Main Street or a 2-person tech firm started in a garage in Palo Alto, are the lifeblood of our economy.
But whether you own a small cafe or just buy your morning coffee there, you may not realize just how vital they are to our society and how many jobs they provide, tax dollars they pay, and how they keep the wheels of progress turning. Here are 20 statistics to enlighten you just how prevalent small business are in the U.S.:
1. There over 28 million small business in the U.S.
2. About 22 million of those are self-employed, with no additional payroll or employees (one-man or woman shops).
3. More than 50% of our U.S. working population works in a small business.
5. Small businesses make up 99.7% of all employers.
6. They pay approximately 44.3% of all U.S. payroll and produce more than 50% of our nonfarm private gross domestic product, a GDP of about $6 trillion.
7. Each month, 543,000 new businesses get started on average.
8. It’s not easy for small businesses to survive, but they do have surprising staying power. 70% of new employer firms survive at least 2 years. 50% last at least 5 years, 33% last at least 10 years, and 25% stay open for 15 years or longer.
9. 52% of all small businesses are home-based ventures.
10. An incredible 75% of all U.S. businesses are non-employer, meaning they revolve around one business owner or several founders but no employees.
11. 19.4 million of those are sole proprietorships, 1.6 million are partnerships, and 1.4 million are filed as corporations.
12. The fastest growing sectors for freelance businesses are auto repair shops, beauty salons, and dry cleaners.
13. Small businesses made $989.6 billion as of 2011 (most recent numbers), which was a 4% increase from the previous year.
14. The average non-employer small business owner makes an average of $44,000 per year.
15. However, about 80% of non-employer businesses reported less than $50,000 in income. (If you trust tax filings!)
16. For all small business owners, the earnings numbers are bleak. 24.4% report less than $5,000 every year, 16.9% $5,000 - $10,000, and 25.3% report $10,000 - $25,000.
17. But there is still good money to be made as a small business owner: 13.5% make between $25,000 - $50,000, 9.6% make $50,000 - $100,000, 7.2% make $100,000 - $250,000, 2.2% make $250,000 - $500,000, and almost 1% make $500,000 - $1,000,000.
18. Over the past decade, California has experienced that highest rate of small business growth at 4% annually.
19. Utah (+3.8%), Nevada (+3.4%), and Florida (+3.1%) are other top states that attract small businesses.
20. Small businesses account for 52.6% of all retail sales, 46.8% of all wholesale sales, and 24.8% of all manufacturing sales.
If you're a small business owner in the Sacramento or Placer County area, the Alfano Real Estate Group would love to support you and help spread the word, so please email to say hi!