Small Business Employment Statistics
Last updated: June 2026 · 5 sourced statistics
Small businesses are America's largest employer in aggregate: 61.6 million workers, just under half the private workforce, and nearly two-thirds of net new jobs created over recent decades. The SBA Office of Advocacy compiles these figures from Census and BLS source data.
Key takeaways
- Small businesses employ 61.6 million Americans — 45.9% of the private workforce (SBA).
- Nearly two-thirds of net new jobs come from small businesses.
- Most US employer firms have fewer than 20 employees.
The statistics
Small businesses employ about 61.6 million Americans, 45.9% of the private-sector workforce (SBA Office of Advocacy).
Source:SBA Office of Advocacy2023
Small businesses generated nearly two-thirds of net new jobs over the past quarter century (SBA analysis of Census data).
Source:SBA Office of Advocacy2023
The overwhelming majority of US employer firms are very small — most have fewer than 20 employees (Census/SBA).
Source:SBA Office of Advocacy / Census SUSB2023
Businesses with overdue invoices report greater difficulty hiring skilled workers — late payments constrain payroll capacity (QuickBooks).
Source:Intuit QuickBooks Small Business Late Payments Report2025
More than 9 in 10 US workers receive pay by ACH direct deposit — small-business payroll rides the same rails as enterprise (Nacha).
Source:Nacha2023
Methodology & sources
Compiled June 2026 from SBA Office of Advocacy data (built on Census SUSB and BLS sources), Intuit QuickBooks surveys, and Nacha payroll research. Employment shares use the SBA's under-500-employee definition.
Frequently asked questions
How many people work for small businesses?
61.6 million Americans — about 46% of all private-sector employees (SBA Office of Advocacy).
Do small businesses really create most jobs?
They've generated nearly two-thirds of net new jobs over recent decades (SBA), though high-growth young firms account for a disproportionate slice.
How does cash flow affect small-business hiring?
Directly — QuickBooks finds firms with overdue receivables report more hiring difficulty. Payroll is the most unforgiving recurring obligation a business has.
Related statistics
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