As National Small Business Week approaches, a new study sheds light on the commonalities among the millions of small businesses in the U.S. According to a Pew Research Center Survey released Monday, the majority of small businesses in the country share some surprising traits.
The study, which analyzed Census Bureau data on 33 million small businesses, found that a staggering 82% of these businesses do not have any employees. In fact, only about 3 million small businesses had between one to four employees on their payroll. Despite this, small businesses collectively employed 56.4 million people in 2021 and generated over $16.2 trillion in revenue.
Contrary to popular belief, most small businesses are not mom-and-pop shops or franchises. Only 27% of small businesses were family-owned, and a mere 5% operated as franchises. Additionally, the majority of small businesses have been in operation for at least six years, with 15% running for over 25 years.
Interestingly, small businesses enjoy a positive public perception, with 86% of Americans viewing them favorably. This sentiment stands in stark contrast to the more lukewarm attitudes towards tech companies and colleges.
However, despite their resilience and positive image, small businesses are not immune to economic concerns. A recent Constant Contact survey revealed that over 80% of small businesses in the U.S., Australia, the U.K., and Canada are worried about how the economic climate will impact their operations this year.
With the number of U.S. business applications on the rise, it’s clear that small businesses continue to play a vital role in the country’s economy. As National Small Business Week approaches, it’s important to recognize and support these essential contributors to our communities.