Entrepreneurship Statistics 101

Dr. Michael Edmondson

Category Firms Percent of all Percent of employer firms

Firms with 1 to 4 employees 3,617,764 13.3% 61.0%Firms with 5 to 9 employees 1,044,065 3.827% 17.6%

Firms with 10 to 19 employees 633,141 2.321% 10.7%Firms with 20 to 99 employees 526,307 1.929% 8.9%

Firms with 100 to 499 employees 90,386 0.331% 1.5%Firms with 500 employees or more 18,469 0.068% 0.31%Firms with 500 to 749 employees 6,060 0.022% 0.10%Firms with 750 to 999 employees 3,038 0.011% 0.05%

Firms with 1,000 to 1,499 employees 3,044 0.011% 0.05%Firms with 1,500 to 1,999 employees 1,533 0.006% 0.03%Firms with 2,000 to 2,499 employees 904 0.003% 0.02%Firms with 2,500 to 4,999 employees 1,934 0.007% 0.03%Firms with 5,000 employees or more 1,956 0.007% 0.03%Firms with 5,000 to 9,999 employees 975 0.004% 0.02%

Firms with 10,000 employees or more 981 0.004% 0.02%

•The SBA defines a small business as an enterprise

having fewer than 500 employees

There are almost 28 million small businesses in the US

and over 22 million are self employed with no additional payroll or

employees (these are called nonemployers)

Over 50% of the working population (120 million

individuals) works in a small business

Approximately 543,000 new businesses get started each month (but more employer businesses shut down than

start up each month)

To classify as a “nonemployer” business you must have annual business receipts of $1,000 or more

and be subject to federal income taxes

Nonemployers had average revenues of $44,000

Around 80% of nonemployer businesses for 2011 (or 18

million businesses) reported less than $50,000 in

receipts

http://www.forbes.com/sites/jasonnazar/2013/09/09/16-surprising-statistics-about-small-businesses/2/