By the Numbers: Celebrating Small Business Achievement

Now that we’ve all had our fair share of turkey and pumpkin pie, the holiday shopping season can get into full swing.

Of course, everyone has heard of Black Friday and Cyber Monday, but right in between the two is Small Business Saturday.

Small Business Saturday was started in 2010 to draw attention to the fact that many small businesses were struggling after the recession. In 2011, the Senate unanimously passed a resolution in support of the day and all 50 states began participating in the occasion, which falls annually on the Saturday after Thanksgiving.

But Small Business Saturday is about more than just shopping. It’s also an opportunity to celebrate small businesses and entrepreneurs.

And there is plenty to celebrate.

In honor of Small Business Saturday, here are a few stats and facts about the vibrant small business landscape across the US.

1. Small Business Market

The number of small businesses has been gradually increasing since the recession.

According to the US Small Business Administration (SBA), there are 30.2 million small businesses across the country, compared to 19,464 large companies. Small businesses account for more than 99% of all US firms. But what might be most interesting is that of US firms with paid employees, 99.7% are small businesses.

2. Major Employer

There’s a key reason why unemployment levels are at record lows. And here’s a hint — it’s not because of big corporations. Across the US, small businesses employ 58.9 million people. Approximately half of all Americans are either employed by or own a small business.

What’s more, over the last five years, small businesses created 6.8 million net new jobs, which is 2.7 million more new jobs than what large companies produced in the same period. In fact, small businesses are responsible for creating two out of every three new employment opportunities.

3. Economic Backbone

Without question, small businesses are essential to the country’s economy.

In 2015, of the almost 295,000 US companies that exported goods, 287,835, or nearly 98%, were small businesses. They generated 32.9% of the country’s $1.3 trillion in total exports. They also accounted for 97% of importers.

Fun fact: California is home to more than 70,000 small firm exporters, the highest among all the states. Other top states are Florida, Texas, New York, and Illinois.

4. Reflection of Diversity

Entrepreneurship in the US is increasingly reflecting the diversity of the American population.

According to the SBA, there are eight million minority-owned businesses in the US. The rate of minority-owned firms has been on the rise in recent years, growing by 38% between 2007 and 2012 alone.

Entrepreneurship among women has also seen a lot of growth. Well, actually, a ton of growth. Between 1997 and 2017, the number of women-owned businesses increased by a staggering 114% compared to the average national growth rate of 44% for all businesses. As of January 2017, 11.6 million women-owned businesses were employing nearly nine million people.

Plus, with 2.5 million veteran-owned businesses across the US, one in 10 business owners is a veteran, providing work for approximately five million workers.

5. Immigrants More Likely to be Entrepreneurs

Immigrants are major contributors to local economies, community development, and entrepreneurship endeavors. That’s because research has shown they are more than twice as likely to start their own business compared to people born in the US.

According to the American Immigration Council, while immigrants comprise 13% of the country’s population, 16% of the labor force, and 18% of all business owners, they own 28% of all “main street” businesses (defined as retail, accommodation and food services, and neighborhood services).

6. Small Business, Big Innovation

Small business owners are trailblazers when it comes to innovation.

A research study that looked at innovative firms (those with 15 or more patents over a five-year period) found that small businesses produced 16 times more patents than large companies. The study found that small businesses out performed large firms in patent originality, generality, and growth while also producing a higher percentage of green patents.

The numbers don’t lie: small businesses are not only an integral part of communities across the US, but they are also a key driver for the country’s economy. When small businesses do well, the US economy does well.

So here’s to celebrating and supporting all the remarkable work that small businesses do, not just on Small Business Saturday, but year-round.