Statistics & Research
67 Small Business Statistics for 2026
The most comprehensive collection of small business data, compiled from the SBA, Census Bureau, Bureau of Labor Statistics, and industry research.
Last updated: February 7, 2026
Key Small Business Statistics
33.3M
Small businesses in the U.S.
SBA
99.9%
Of all U.S. businesses
SBA
61.7M
People employed by small businesses
SBA
46.4%
Of U.S. workforce
BLS
20%
Fail in first year
BLS
45%
Of U.S. GDP
SBA
General Small Business Statistics
There are 33.3 million small businesses in the United States as of 2023, representing 99.9% of all American businesses.
Source: SBA
- •16 million new business applications have been filed since 2021, leading to 2.8 million established new businesses.(Census Bureau)
- •Small businesses contribute approximately 45% of U.S. GDP.(SBA)
- •50% of all businesses in America are started from home.(SBA)
- •60% of businesses without staff are home-based — roughly 19 million home-based businesses.(SBA)
- •California has the most small businesses with 3.9 million, followed by Texas (2.6M), Florida (2.5M), New York (2.1M), and Illinois (1.2M).(SBA)
Small Business Employment Statistics
Small businesses employ 61.7 million people — approximately 46.4% of the U.S. workforce.
Source: SBA
- •Small businesses created 17.3 million net new jobs between 1995 and 2021, accounting for 62.7% of net new jobs.(BLS)
- •Between March 2021 and March 2022, small businesses created 4.9 million jobs — 70% of all new job creation.(BLS)
- •88.1% of small businesses have fewer than 20 employees.(Census Bureau)
- •56% of small businesses have 4 or fewer employees (micro businesses).(Census Bureau)
- •The average small business employee earns $45,857 per year.(Census Bureau)
- •33% of small business owners work 50+ hours per week; 25% work 60+ hours.(NY Enterprise Report)
Small Business Survival & Failure Rates
20% of small businesses fail within their first year. 50% fail by year five. 65% fail by year ten.
Source: Bureau of Labor Statistics
| Years in Business | Survival Rate | Failure Rate |
|---|---|---|
| 1 year | 80% | 20% |
| 2 years | 68% | 32% |
| 3 years | 60% | 40% |
| 4 years | 54% | 46% |
| 5 years | 50% | 50% |
| 10 years | 34% | 66% |
| 15 years | 25% | 75% |
Small business survival rates by years in operation · Source: Bureau of Labor Statistics
Survival Rate by Industry
- •Healthcare and social assistance has the highest first-year survival rate at 85%.
- •Construction, transportation, and warehousing have the lowest survival rates at 30-40% by year five.
- •The technology industry has the highest failure rate — 75% of fintech startups fail within two decades.
Top Reasons Small Businesses Fail
| Reason | Percentage |
|---|---|
| Running out of cash / poor cash flow | 38% |
| No market need for product/service | 35% |
| Being outcompeted | 20% |
| Flawed business model | 19% |
| Regulatory/legal challenges | 18% |
Source: CB Insights
Small Business Financing Statistics
- •The average initial startup cost for small businesses ranges from $2,000 to $5,000.(SBA)
- •In fiscal year 2023, the SBA provided $27.5 billion through 57,300+ 7(a) loans to small businesses.(SBA)
- •70% of SBA 7(a) loans were for $350,000 or less.(SBA)
- •50% of SBA microloans ($43.5M) went to Black- and Latino-owned businesses in FY2023.(SBA)
- •69% of small business owners fund their businesses using retained business earnings.(Federal Reserve)
- •13.8% of big banks approve small business loans (down from ~28% pre-pandemic).(Biz2Credit)
- •65.3% of small businesses are currently profitable.(Chamber of Commerce)
Small Business Demographics Statistics
32%
Women-owned businesses
Guidant Financial
21%
Minority-owned businesses
Census Bureau
- •22% of employer businesses are women-owned, employing 10.5 million people.(Census Bureau)
- •Black- and Latino-owned businesses experienced the fastest growth — ownership increased from 5% to 11% and 7% to 10% respectively between 2019 and 2022.(Census Bureau)
- •The growth rate of women-owned businesses was 94% greater than male-owned businesses from 2019 to 2023.(Census Bureau)
- •21.7% of business owners are immigrants. Immigrant-owned businesses employed 8 million people.(New American Economy)
Small Business Owner Age Distribution
| Generation | Age Range | % of Owners |
|---|---|---|
| Generation X | 41-56 | 46% |
| Baby Boomers | 57-75 | 41% |
| Millennials | 25-40 | 13% |
| Generation Z | <24 | 1% |
Source: Guidant Financial
Small Business Challenges Statistics
- •23% of small businesses say inflation is their single most important problem.(NFIB)
- •40% of small business owners have trouble filling open positions.(NFIB)
- •49% of hiring owners cite a lack of qualified applicants.(NFIB)
- •73% of business owners feel the impact of supply chain issues.(Bank of America)
- •43% of cyber attacks are aimed at small businesses, but only 14% are actively defending against them.(Verizon)
Industry-Specific Statistics
Restaurant Industry
- •There are approximately 1 million restaurant locations in the United States.(National Restaurant Association)
- •The restaurant industry employs 15.5 million people.(National Restaurant Association)
- •3% of all U.S. restaurants went out of business during the pandemic.(Harvard Business School)
Retail Industry
- •Retail business applications increased by 87% from 2019 to 2021.(SBA)
Transportation & Warehousing
- •Transportation and warehousing applications grew by 100.7% from 2019 to 2021.(SBA)
Small Business Outlook Statistics
- •65% of small business owners expect revenue to increase over the next year.(Bank of America)
- •55% of business owners expect all payment methods to eventually become digital.(Bank of America)
- •57% of small businesses plan to continue offering remote work options.(SBA)
- •47% of Americans frequent small businesses 2-4 times every week.(Score)
- •For every dollar spent at a small business, 67 cents stays in the community.(Score)
Frequently Asked Questions
How many small businesses are in the United States?
There are 33.3 million small businesses in the United States as of 2023, according to the SBA. This represents 99.9% of all U.S. businesses.
What percentage of small businesses fail?
Approximately 20% of small businesses fail within the first year, 50% fail by year five, and 65% fail by year ten. Only about 25% of small businesses survive past 15 years.
How many people work for small businesses?
Small businesses employ 61.7 million people in the United States, which represents approximately 46.4% of the total U.S. workforce.
What is the success rate of small businesses?
The success rate of small businesses is 80% after the first year, declining to 50% by year five, and just 25% by year fifteen.
What industry has the highest small business success rate?
Healthcare and social assistance has the highest first-year survival rate at 85%. Construction, transportation, and warehousing have the lowest survival rates.
Sources
- U.S. Small Business Administration (SBA)
- Bureau of Labor Statistics (BLS)
- U.S. Census Bureau
- National Federation of Independent Business (NFIB)
- Federal Reserve Small Business Credit Survey
- Bank of America Small Business Owner Report
- NerdWallet Small Business Survey
- Guidant Financial Small Business Trends
- CB Insights Startup Failure Analysis
- Chamber of Commerce
- Verizon Data Breach Report
- National Restaurant Association
Find Small Business Owner Contact Data
LocalStitch helps you find verified emails, phone numbers, and decision-maker data for millions of small businesses.
Try LocalStitch Free
Ready to find your next customers?
Start discovering and enriching local business leads today.