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Small business · updated 23 Oct 2026

Small business statistics 2026

How many small businesses there are, where, and how they use new tools, from the SBA Office of Advocacy and Census data.

14stats6sources100%linked to the source
Small business · the headline stat
24.3%

of US businesses with 1 to 4 employees used AI in any business function in the two weeks before the survey

Official dataChecked at sourceSmallUSA
GroupUsed AI in last two weeks
1 to 424.3%
5 to 922.6%
10 to 1924.6%
20 to 4926%
50 to 9929%
100 to 24935.3%
250 or more43.6%
All US firms24.6%
Source: US Census Bureau, Business Trends and Outlook Survey One wave (5-18 Oct 2026), one question. Census changed the wording again from 19 Oct 2026.digitaltreed.com/statistics

Source: US Census Bureau, Business Trends and Outlook Survey, Oct 2026

Open this stat

14 stats
Small business
24.3%

of US businesses with 1 to 4 employees used AI in any business function in the two weeks before the survey

Official dataUS Census Bureau, Oct 2026

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Small business in one chart

Switch the chart type and the style; sort it, download it or embed it. Hover a bar for the exact value.

US firms using AI, by number of employees

GroupUsed AI in last two weeks
1 to 424.3%
5 to 922.6%
10 to 1924.6%
20 to 4926%
50 to 9929%
100 to 24935.3%
250 or more43.6%
All US firms24.6%
Source: US Census Bureau, Business Trends and Outlook Survey One wave (5-18 Oct 2026), one question. Census changed the wording again from 19 Oct 2026.digitaltreed.com/statistics

What this chart tells you

Ask Diboo to explain it
  1. One in four US employer firms used AI in the two weeks to 18 Oct 2026: 24.6%.
  2. Firms with 1 to 4 staff are right at the average: 24.3%.
  3. Firms with 5 to 9 staff are lowest, at 22.6%.
Read it for your size:Small firms: 24.3%

Same data, any style

More views of the Small business data

Firms with 1 to 4 staff using AI, every two weeks

Group1 to 4 employees
30 Nov 202517%
28 Dec 202517.7%
25 Jan 202618.2%
22 Feb 202617.5%
22 Mar 202618.5%
19 Apr 202619.2%
17 May 202619.1%
14 Jun 202620.1%
12 Jul 202620.8%
9 Aug 202621.9%
6 Sep 202623.6%
4 Oct 202623.9%
18 Oct 202624.3%
Source: US Census Bureau, Business Trends and Outlook Survey Every other wave shown (wave end dates). Same question since the wave ending 30 Nov 2025; waves before it used other wording and are left out.digitaltreed.com/statistics

What small firms use AI for (share of AI users)

GroupAI-using small employer firms
Writing or marketing83%
Individual productivity61%
Planning or analysis51%
Administrative functions38%
Customer service29%
Process automation21%
Coding19%
Source: Federal Reserve Banks, Small Business Credit Survey Multiple answers allowed. N=2,225 AI-using employer firms, 2025 survey.digitaltreed.com/statistics

US small businesses, with and without employees (millions)

GroupFirms (millions)
No employees29.8
With employees6.4
Source: US Small Business Administration, Office of Advocacy, Frequently Asked Questions About Small Business; Small Business Profiles SBA FAQ 2026: 29,811,495 and 6,395,635, rounded. Total 36,207,130.digitaltreed.com/statistics

Every stat

All Small business stats

Each card links to its own page with the source, a ready citation and the data.

Official dataSmallUSA
24.3%

of US businesses with 1 to 4 employees used AI in any business function in the two weeks before the survey

Sample: About 1.2 million US employer businesses in six panels; each panel reports every 12 weeks. Estimate for firms with 1 to 4 employees.

Official dataSmallUSA
22.6%

of US businesses with 5 to 9 employees used AI in the last two weeks, the lowest rate of any size band

Sample: About 1.2 million US employer businesses sampled; estimate for firms with 5 to 9 employees.

SurveySmallUSA
46%

of US small employer firms said the business or its employees were using AI for work in late 2025

Sample: Convenience sample of 6,525 employer firms with 1 to 499 employees, all 50 states and DC, fielded 3 Sep to 14 Nov 2025; AI questions answered by about 81% (N=5,248). Weighted to Census data.

Official dataAll sizesUSA
51.4%

of US private-sector establishments that opened in the year to March 2020 were still open five years later

Sample: All new private-sector establishments in the BLS Business Employment Dynamics data (767,573 opened in the year to March 2020). Establishments, not firms.

Official dataAll sizesUSA
77.9%

of US private-sector establishments that opened in the year to March 2024 survived their first year

Sample: 988,310 new private-sector establishments opened in the year to March 2024.

Official dataAll sizesUSA
534,947

US business applications were filed in September 2026, seasonally adjusted, up 0.5% from August

Sample: Applications for an Employer Identification Number (EIN) filed with the IRS; all applications, not only future employers.

SurveySmallUSA
51%

of US small employer firms had their funding needs met in 2025; 34% had a financing shortfall

Sample: 6,525 small employer firms, convenience sample weighted to Census data.

Vendor dataSmallUSA
83%

of US small businesses have a website, up from 64% in 2018, in a vendor survey of 406 owners

Sample: 406 US small business owners surveyed on 5 Aug 2025 via SurveyMonkey (vendor survey, small sample).

Reconciled

Same question, different answers

The different numbers you see quoted are often all real: they come from different panels, years and questions. Here they are side by side.

How many small businesses are there in the US?

NumberWhenWho measuredWhy it differs
36.2M2022 data (FAQ Feb 2026)SBA Office of AdvocacyAll firms under 500 employees, including one-person firms with no payroll
6.4M2022SBA Advocacy from Census Statistics of US BusinessesOnly small firms with paid employees (6,395,635)
29.8M2022SBA Advocacy from Census Nonemployer StatisticsOnly firms with no employees (29,811,495), mostly sole proprietors
4.34M2025 state profilesSBA Office of AdvocacyCalifornia alone, the state with the most

What share of small businesses use AI?

NumberWhenWho measuredWhy it differs
8.2%Sept 2024 to Aug 2025SBA Advocacy FAQ from Census BTOSFirms under five employees; older BTOS question (AI used to produce goods or services)
24.3%Wave 5-18 Oct 2026Census BTOSFirms with 1 to 4 employees; current question (AI in any business function, last two weeks)
17.9%17 Nov 2025 to 8 Feb 2026Census BTOS AI supplementAll employer firms, pooled winter waves; not comparable with the biweekly series
46%Sept to Nov 2025Federal Reserve Small Business Credit SurveyEmployer firms under 500 staff; counts any use by the business or its employees; convenience sample of 6,525

Stat check

Numbers about Small business you should stop quoting

Famous stats with no real source, or quoted wrong, and where they came from.

Misquoted

Half of small businesses fail in their first year

A mix-up of the five-year figure. BLS data show about half of new establishments close within five years, not one. In the first year about 78% survive. Where it came from

Quote this instead: 77.9%
Outdated

Only about 8% of small businesses use AI

The SBA Advocacy FAQ (Feb 2026) quotes 8.2% for firms under five employees, from the older Census BTOS question over Sept 2024 to Aug 2025. Census changed the question in Nov 2025; firms with 1 to 4 staff are now at 24.3%. Where it came from

Quote this instead: 24.3%
Outdated

Nearly half of small businesses do not have a website

A 2016 Clutch survey found nearly 50% of small businesses had no website. Clutch's own 2025 survey puts website ownership at 83% (vendor survey of 406 owners). Where it came from

Quote this instead: 83%

Get the numbers when they change

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Every number on this page was checked at its original source. Free to cite with a link to the stat page.