According to the latest data we analyze from BLS, on average 425,729 new businesses open every month in the United States in 2023. This means that over 5 million new businesses are expected to be established each year through 2023.
However, starting a business is not easy, and many struggle financially. Over two-thirds (66%) of small businesses significantly struggle financially.
While many new businesses are started each month, not all of them survive. Approximately one in twelve businesses close each year.
Additionally, only 25% of small businesses survive for 15 years or more.
Despite these challenges, many small business owners are happy with their decision to start a business. On a scale of 1 to 10, 53% of business owners ranked their happiness at nine or above.
What Is The Percentage Of Small Businesses In The Us Economy
Small businesses make up a sizable portion of the US economy.
According to the US Small Business Administration, small businesses of 500 employees or fewer make up 99.9% of all US businesses and 99.7% of firms with paid employees.
Small businesses account for about 44% of economic activity in the United States, generating 1.5 million jobs annually. A report by the SBA shows that small businesses accounted for 44% of US economic activity from 1998 to 2014.
However, over the same period, the small business share of GDP has fallen from 48.0 percent to 43.5 percent.
Small businesses accounted for about 45% of GDP in 2010, down from 50% in the late 1990s reported by JP Morgan Chase. Over time, large businesses have grown faster than small businesses, but small businesses continue to be big contributors to the US economy.
The vast majority (88%) of employer firms have fewer than 20 employees, and nearly 40% of all enterprises have under $100k in revenue. Without small businesses, the American economy and innovation would suffer greatly.