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Small firms that employ twenty or fewer people make up 89.5% of all US businesses. These small firms are what power the American economy. In 2008, small businesses produced 46% of the US GDP. Day in, day out – small firms prove that businesses don’t have to be big to be successful. Innovative and powerful brands like Death Wish Coffee, Johnny Cupcakes, and Askinosie Chocolate are just a few examples. Take a look at the facts and figures on this infographic to see that small staffs can still generate big profits.
The U.S. Census Bureau defines a “firm” as “a business organization consisting of one or more domestic establishments in the same state and industry that were specified under common ownership or control.” In other words, it’s a business with one or more locations owned by the same person or group.
There are a total of about 5.78 million firms in the United States. Of those 89.5%, about 5.17 million, employ 20 or fewer people. Small businesses such as these dominate the American economy.
In every state, small businesses make up the majority of firms. Take a look below, but first note that these numbers don’t take into account “non-employer businesses,” which do not have employees.
Click here to view our “Small Businesses Stand Stall” Infographic.
Embed Code <a href=”https://www.bfscapital.com/blog/small-businesses-stand-tall-infographic/”><br />
<img alt=”Small Businesses Stand Tall” src=”https://www.bfscapital.com/media/1297/infographic-small-businesses-stand-tall-1600×1982.png”><br />
Remember how we mentioned non-employer businesses? Well, if you were curious, there were about 23 million of them in 2013. So technically, if you wanted to add them into the firms referenced above, businesses that have fewer than 20 workers make up 97.9% of the field.
In 2008, small businesses produced 46% of the private, non-farm GDP.
Since 1995, 65% of new jobs created were at small firms.
Small businesses are innovative, too! In a study of firms that produce a lot of patents, it was found that small businesses produce 16 times as many patents as their larger competitors!
Small business start-ups are more common, and the rate of small business failures is falling, according to the U.S. Small Business Administration. Since 1990, larger businesses have cut 4 million jobs, but smaller businesses have added twice that — 8 million new jobs.
If you added up all of the commercial space in the United States, 30% to 50% of it would be occupied by small businesses. That’s 20 to 34 billion square feet.
Here are some examples of businesses that keep it small but still rake in the dough.
Headquarters: Springfield, Missouri
Number of Employees: 17
Revenue Per Employee: $117,647.06
Headquarters: Hull, Massachusetts
Number of Employees: 30
Revenue Per Employee: $126,666.67
Mattress & Box Spring Manufacturer
Headquarters: San Francisco, California
Revenue Per Employee: $233,333.33
Cosmetic & Skincare Company
Headquarters: New York City, New York
Number of Employees: 34
Revenue Per Employee: $352,941.18
Headquarters: Fresno, California
Number of Employees: 33
Revenue Per Employee: $363,636.36
Team Building & Leadership Development
Headquarters: Atlanta Georgia
Number of Employees: 21
Revenue Per Employee: $428,571.43
Coffee Company & Distributor
Headquarters: Round Lake, New York
Number of Employees: 12
Revenue Per Employee: $500,000.00
Number of Employees: 44
Revenue Per Employee: $681,818.18
Travel & Private Tour Company
Headquarters: Missoula, Montana
Number of Employees: 16
Revenue Per Employee: $687,500.00
Venture Capital Firm
Headquarters: Boston, Massachusetts
Revenue Per Employee: $16,666,666.67
Learn how we help our customers around the country grow their small businesses—and thrive.