Innovation
Small businesses are the backbone of our economy
Small businesses are critical to the U.S. economy, creating about two-thirds of net new jobs and accounting for roughly 44% of total economic activity. As the primary driver of innovation and employment, they constitute 99.9% of U.S. firms and bolster communities through local, specialized goods and services.
Key impacts of small businesses on the U.S. economy:
- Job Creation: Small businesses are responsible for creating roughly 62% to 64% of all new jobs.
- Economic Impact: They contribute to nearly half of all private-sector jobs and produce about 44% of U.S. GDP.
- Innovation: Small businesses produce 16 times more new patents per employee than larger firms.
- Local Impact: $100 spent at a local business keeps approximately 68% of that revenue within the local economy.
- Export Growth: Small businesses represent 98% of all identified U.S. exporters.
The United States Trade Representative notes that small businesses, often with five to 500 employees, represent the backbone of the American economy and are a significant part of the nation. Supporting these businesses is frequently prioritized, with initiatives often highlighting the need to support or, as shown on Instagram, honor their contributions to the American Dream.