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.
How many small businesses there are, where, and how they use new tools, from the SBA Office of Advocacy and Census data.
of US businesses with 1 to 4 employees used AI in any business function in the two weeks before the survey
| Group | Used AI in last two weeks |
|---|---|
| 1 to 4 | 24.3% |
| 5 to 9 | 22.6% |
| 10 to 19 | 24.6% |
| 20 to 49 | 26% |
| 50 to 99 | 29% |
| 100 to 249 | 35.3% |
| 250 or more | 43.6% |
| All US firms | 24.6% |
Source: US Census Bureau, Business Trends and Outlook Survey, Oct 2026
of US businesses with 1 to 4 employees used AI in any business function in the two weeks before the survey
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| Group | Used AI in last two weeks |
|---|---|
| 1 to 4 | 24.3% |
| 5 to 9 | 22.6% |
| 10 to 19 | 24.6% |
| 20 to 49 | 26% |
| 50 to 99 | 29% |
| 100 to 249 | 35.3% |
| 250 or more | 43.6% |
| All US firms | 24.6% |
Same data, any style
| Group | 1 to 4 employees |
|---|---|
| 30 Nov 2025 | 17% |
| 28 Dec 2025 | 17.7% |
| 25 Jan 2026 | 18.2% |
| 22 Feb 2026 | 17.5% |
| 22 Mar 2026 | 18.5% |
| 19 Apr 2026 | 19.2% |
| 17 May 2026 | 19.1% |
| 14 Jun 2026 | 20.1% |
| 12 Jul 2026 | 20.8% |
| 9 Aug 2026 | 21.9% |
| 6 Sep 2026 | 23.6% |
| 4 Oct 2026 | 23.9% |
| 18 Oct 2026 | 24.3% |
| Group | AI-using small employer firms |
|---|---|
| Writing or marketing | 83% |
| Individual productivity | 61% |
| Planning or analysis | 51% |
| Administrative functions | 38% |
| Customer service | 29% |
| Process automation | 21% |
| Coding | 19% |
| Group | Firms (millions) |
|---|---|
| No employees | 29.8 |
| With employees | 6.4 |
Every stat
Each card links to its own page with the source, a ready citation and the data.
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.
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.
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.
of US small employer firms that use AI use it for writing or marketing, the top task
Sample: Small employer firms that use AI, N=2,225.
small businesses in the US, 99.9% of all firms; 82.3% of them have no employees
Sample: Count of all firms with fewer than 500 employees, from Census Statistics of US Businesses 2022 and Nonemployer Statistics 2022.
of US private-sector employees work for small businesses, 62.3 million people
Sample: Census Statistics of US Businesses 2022.
of US small businesses have no employees (29.8 million nonemployer firms)
Sample: Census Nonemployer Statistics 2022 and Statistics of US Businesses 2022.
small businesses in California, the most of any state; Texas has 3.52M and Florida 3.49M
Sample: SBA Office of Advocacy 2025 Small Business Profiles for the States, Territories, and Nation.
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.
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.
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.
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.
of US small employer firms operated at a profit in 2024
Sample: 6,525 small employer firms; 95% confidence interval +/- 1.9 points.
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
The different numbers you see quoted are often all real: they come from different panels, years and questions. Here they are side by side.
| Number | When | Who measured | Why it differs |
|---|---|---|---|
| 36.2M | 2022 data (FAQ Feb 2026) | SBA Office of Advocacy | All firms under 500 employees, including one-person firms with no payroll |
| 6.4M | 2022 | SBA Advocacy from Census Statistics of US Businesses | Only small firms with paid employees (6,395,635) |
| 29.8M | 2022 | SBA Advocacy from Census Nonemployer Statistics | Only firms with no employees (29,811,495), mostly sole proprietors |
| 4.34M | 2025 state profiles | SBA Office of Advocacy | California alone, the state with the most |
| Number | When | Who measured | Why it differs |
|---|---|---|---|
| 8.2% | Sept 2024 to Aug 2025 | SBA Advocacy FAQ from Census BTOS | Firms under five employees; older BTOS question (AI used to produce goods or services) |
| 24.3% | Wave 5-18 Oct 2026 | Census BTOS | Firms with 1 to 4 employees; current question (AI in any business function, last two weeks) |
| 17.9% | 17 Nov 2025 to 8 Feb 2026 | Census BTOS AI supplement | All employer firms, pooled winter waves; not comparable with the biweekly series |
| 46% | Sept to Nov 2025 | Federal Reserve Small Business Credit Survey | Employer firms under 500 staff; counts any use by the business or its employees; convenience sample of 6,525 |
Stat check
Famous stats with no real source, or quoted wrong, and where they came from.
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%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%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%Every number on this page was checked at its original source. Free to cite with a link to the stat page.
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