WASHINGTON, D.C. — How much do you know about American small businesses? Did you know, for example, that there are 27.9 million small firms, and that about half of all new establishments survive at least five years? In keeping with its mission to examine the contributions of small businesses to the U.S. economy, the Office of Advocacy has expanded and redesigned its most requested publication, Frequently Asked Questions About Small Business (FAQ). The new edition includes twice as much data as previous versions, as well as charts and tables showing key small business statistics and trends.
“Advocacy’s team of economists is constantly on the lookout for new and robust sources of statistics, while continuing to follow the trends evident in the government’s ongoing databases,” said Chief Counsel for Advocacy Winslow Sargeant. “We’re pleased to provide timely and actionable data on the key questions asked by small business people, policymakers, and the media.”
Many key small business statistics remain virtual constants — small firms constitute 99.7 percent of U.S. employer firms, 64 percent of net new private sector jobs, about half (49.2 percent) of private sector employment, 42.9 percent of private sector payroll, 46 percent of private sector output, 43 percent of high-tech employment, 98 percent of goods exporting firms, and one-third of exporting value.
The new FAQ includes data reflecting the numbers of new and small firms, their types, shares of net new jobs, and ownership by minorities, women, veterans, and youth. There are figures showing employment levels and survival rates by firm birth year, startups and closures, business churn, and companies’ legal forms of organization. The FAQ also answers questions about home-based businesses, franchises, small business innovation, financing, procurement, and effective tax rates.
For more, visit the Office of Advocacy website at www.sba.gov/advocacy/7495.
The Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. The presidentially appointed and Senate confirmed Chief Counsel for Advocacy advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policymakers. Regional advocates and an office in Washington, D.C., support the Chief Counsel’s efforts. For more information, visit www.sba.gov/advocacy, or call (202) 205-6533.