By Aijaz Alam
How many small businesses are there in the US?
There are 36.2 million small businesses in the US (36,207,130), according to the SBA Office of Advocacy's February 2026 FAQ, built on 2022 Census data. They make up 99.9% of all firms. Most are one-person firms: 29.8 million (82.3%) have no employees, and 6.4 million have paid staff. California has the most, at 4.34 million.
- 36.2MSmall businesses in the US (fewer than 500 employees), 99.9% of all firmsSBA Advocacy FAQ, Feb 2026, 2022 data
- 82.3%Have no employees (29.8 million nonemployer firms)SBA Advocacy, 2022 data
- 6.4MSmall businesses with paid employeesSBA Advocacy, 2022 data
- 45.9%Of private-sector employees work for small businesses (62.3 million people)SBA Advocacy FAQ, Feb 2026, 2022 data
- 4.34MSmall businesses in California, the most of any stateSBA 2025 state profiles, 2022 data
The numbers
The full breakdown
US businesses by employer status, 2022 data
| Group | Firms | Share of small businesses |
|---|---|---|
| Nonemployer firms (no paid staff) | 29,811,495 | 82.3% |
| Small employer firms (1 to 499 staff) | 6,395,635 | 17.7% |
| All small businesses | 36,207,130 | 100% |
| Large businesses (500+ staff) | 21,041 | not small |
SBA Office of Advocacy FAQ (Feb 2026), from Census Statistics of US Businesses 2022 and Nonemployer Statistics 2022.
Small businesses in each state and DC, 2022 data
| State | Small businesses | Share of the state's businesses |
|---|---|---|
| California | 4,340,784 | 99.8% |
| Texas | 3,517,343 | 99.8% |
| Florida | 3,485,976 | 99.8% |
| New York | 2,378,996 | 99.8% |
| Georgia | 1,374,972 | 99.7% |
| Illinois | 1,353,957 | 99.6% |
| Pennsylvania | 1,169,008 | 99.6% |
| North Carolina | 1,107,537 | 99.6% |
| Ohio | 1,081,292 | 99.6% |
| New Jersey | 1,051,630 | 99.7% |
| Michigan | 983,079 | 99.6% |
| Virginia | 880,366 | 99.6% |
| Massachusetts | 756,096 | 99.5% |
| Tennessee | 741,196 | 99.5% |
| Colorado | 730,887 | 99.5% |
| Arizona | 706,640 | 99.5% |
| Maryland | 696,710 | 99.6% |
| Washington | 695,695 | 99.5% |
| Indiana | 591,671 | 99.4% |
| Missouri | 590,131 | 99.4% |
| Minnesota | 560,428 | 99.5% |
| South Carolina | 530,402 | 99.4% |
| Louisiana | 511,235 | 99.5% |
| Wisconsin | 497,370 | 99.4% |
| Alabama | 465,610 | 99.4% |
| Oregon | 417,747 | 99.4% |
| Oklahoma | 395,520 | 99.4% |
| Kentucky | 393,860 | 99.3% |
| Connecticut | 381,129 | 99.4% |
| Utah | 371,569 | 99.4% |
| Nevada | 353,621 | 99.3% |
| Mississippi | 294,768 | 99.4% |
| Arkansas | 292,728 | 99.3% |
| Iowa | 289,962 | 99.3% |
| Kansas | 273,419 | 99.1% |
| Idaho | 207,670 | 99.2% |
| Nebraska | 193,495 | 99.1% |
| New Mexico | 172,113 | 99.0% |
| Maine | 160,215 | 99.2% |
| New Hampshire | 145,314 | 99.0% |
| Hawaii | 144,375 | 99.3% |
| Montana | 141,011 | 99.2% |
| West Virginia | 118,045 | 98.8% |
| Rhode Island | 116,149 | 98.9% |
| Delaware | 111,346 | 98.7% |
| South Dakota | 96,770 | 98.9% |
| District of Columbia | 82,666 | 98.2% |
| Vermont | 81,949 | 99.0% |
| Wyoming | 81,924 | 98.9% |
| North Dakota | 78,219 | 98.8% |
| Alaska | 77,814 | 99.1% |
SBA Office of Advocacy 2025 Small Business Profiles (30 Jun 2025), one PDF per state, from Census Nonemployer Statistics 2022 and Statistics of US Businesses 2022. Small business: fewer than 500 employees, including firms with no employees. The state counts add up to more than the national total (our sum: 36,272,409 against 36,186,089 in the US profile), so do not add them together. No 2026 state profiles had been published when we checked on 30 Oct 2026.
US small businesses by industry and size, 2022 data
| Industry | No employees | 1 to 19 employees | 20 to 499 employees | All small businesses |
|---|---|---|---|---|
| Professional, Scientific, and Technical Services | 4,013,209 | 815,006 | 53,523 | 4,881,738 |
| Transportation and Warehousing | 3,854,720 | 211,295 | 23,868 | 4,089,883 |
| Other Services (except Public Administration) | 3,132,683 | 683,865 | 43,971 | 3,860,519 |
| Construction | 2,875,590 | 718,831 | 62,361 | 3,656,782 |
| Real Estate and Rental and Leasing | 3,145,367 | 352,076 | 13,246 | 3,510,689 |
| Administrative, Support, and Waste Management | 2,819,562 | 332,032 | 39,958 | 3,191,552 |
| Health Care and Social Assistance | 2,256,042 | 593,927 | 95,515 | 2,945,484 |
| Retail Trade | 2,170,322 | 585,925 | 57,190 | 2,813,437 |
| Arts, Entertainment, and Recreation | 1,679,020 | 130,479 | 17,063 | 1,826,562 |
| Accommodation and Food Services | 624,030 | 446,628 | 125,836 | 1,196,494 |
| Finance and Insurance | 782,618 | 227,525 | 15,185 | 1,025,328 |
| Educational Services | 859,958 | 82,088 | 19,928 | 961,974 |
| Wholesale Trade | 445,919 | 236,359 | 38,270 | 720,548 |
| Manufacturing | 397,797 | 177,779 | 57,309 | 632,885 |
| Information | 396,260 | 78,210 | 9,777 | 484,247 |
| Agriculture, Forestry, Fishing and Hunting | 263,748 | 21,137 | 1,361 | 286,246 |
| Mining, Quarrying, and Oil and Gas Extraction | 77,387 | 14,122 | 2,881 | 94,390 |
| Utilities | 17,263 | 5,293 | 1,273 | 23,829 |
| Management of Companies and Enterprises | not reported | 5,245 | 12,795 | 18,040 |
| Industries not classified | not reported | 8,458 | 40 | 8,498 |
| All industries | 29,811,495 | 5,720,093 | 654,501 | 36,186,089 |
SBA Office of Advocacy 2025 Small Business Profile for the United States, from Census Nonemployer Statistics 2022 and Statistics of US Businesses 2022. "Not reported": Census does not publish that cell. The total (36,186,089) is the profile's own and is 21,041 below the FAQ's 36,207,130.
Jobs at US small businesses, 2022 data
| Measure | Value |
|---|---|
| People employed by small businesses | 62.3 million |
| Share of private-sector employees | 45.9% |
SBA Office of Advocacy FAQ (Feb 2026), from Census Statistics of US Businesses 2022. Earlier SBA material rounded the share to 46%.
Over time
SBA small business count, each release we have
| Published | Census data year | Small businesses | Release |
|---|---|---|---|
| 14 Nov 2023 | 2020 | 33,271,644 | SBA 2023 Small Business Profile, United States |
| 19 Nov 2024 | 2021 | 34,752,434 | SBA 2024 Small Business Profile, United States |
| 30 Jun 2025 | 2022 | 36,186,089 | SBA 2025 Small Business Profile, United States |
| 3 Feb 2026 | 2022 | 36,207,130 | SBA Advocacy FAQ 2026 |
Each profile counts firms in the Census year shown (Nonemployer Statistics and Statistics of US Businesses). The 2025 profile and the 2026 FAQ both use 2022 data but print totals 21,041 apart; neither document explains the gap, and both round to 36.2 million. The FAQ also says nonemployer firms nearly doubled, from 15.4 million in 1997 to 29.8 million in 2022.
Why sources differ
Same question, different answers
| 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 | 2022 data (2025 state profiles) | SBA Office of Advocacy | California alone, the state with the most |
| 34.8M | 2021 data (2024 profile) | SBA Office of Advocacy | An older edition built on 2021 Census counts |
| 5.67M | 2025 | Census Business Formation Statistics | Applications to start a business in one year (our sum of monthly counts), not firms in operation |
All of these numbers are correct; they count different things. 36.2 million is every independent firm with fewer than 500 employees, and it includes freelancers and sole proprietors with no payroll. If an article says there are about 6 million small businesses, it is counting only employer firms, the 6.4 million that pay at least one employee. The 29.8 million nonemployer figure is the other side of the same total. Census business applications, 5.67 million in 2025 by our sum, measure people who applied to start a business that year. An application is not an operating firm, and the figures cover different years, so they cannot be added to the 36.2 million. Older pages often quote counts from earlier SBA editions built on older Census years, such as 33.3 million (2020 data) or 34.8 million (2021 data). The current count rests on 2022 data even though SBA published it in 2026, because the Census counts it is built on are for 2022.
What it means
How to use these numbers
Almost every US business is small, but most of them are one person working alone. Of the 36.2 million small businesses, 29.8 million have no employees. Only 6.4 million have staff on payroll.
That split matters if you sell to small businesses. A freelancer, a single-owner shop and a 200-person manufacturer all count as small, yet they buy very differently. Software, payroll, insurance and agency services aimed at firms with staff have a market of about 6.4 million, not 36.2 million. Tools for solo operators have the larger pool.
Small firms also matter as employers: they employ 62.3 million people, 45.9% of private-sector workers.
Each SBA edition has counted more: 33.3 million in 2020 data, 34.8 million in 2021 and 36.2 million in 2022.
For state-level planning, California (4.34 million), Texas (3.52 million) and Florida (3.49 million) have the most small businesses.
For journalists, say which count you use and give the data year. The 36.2 million figure was published in 2026 but describes businesses in 2022.
Method and sources
How it was measured
Method
- Publisher
- US Small Business Administration, Office of Advocacy (FAQ, Feb 2026; Small Business Profiles, Jun 2025)
- Sample
- Not a survey: a count of all firms with fewer than 500 employees, from Census Statistics of US Businesses 2022 (employer firms) and Nonemployer Statistics 2022
- Definition
- Small business: an independent business with fewer than 500 employees. Nonemployer firm: no paid employees, such as a freelancer or sole proprietor. Employer firm: at least one paid employee
- Data year
- 2022 for the national count, the job figures and the 2025 state profiles (each state PDF cites Nonemployer Statistics 2022 and Statistics of US Businesses 2022)
- Checked at source
- 23 Oct 2026, SBA Advocacy FAQ PDF (Feb 2026) and the 30 Jun 2025 state profiles release; 30 Oct 2026, the 51 state and DC profile PDFs, the 2023, 2024 and 2025 US profile PDFs and the FAQ PDF again
- Next release
- SBA updates the FAQ once a year, usually early in the year; state profiles are also yearly
- Last changed
- 30 Oct 2026
- Data files
- CSV · JSON (stable links)
Sources
- Frequently Asked Questions About Small Business; Small Business Profiles, US Small Business Administration, Office of Advocacy Official data
- Business Formation Statistics, US Census Bureau Official data
Cite this page
APA
MLA
HTML link
FAQ
More questions people ask
How many small businesses in the US have employees?
6,395,635, or 17.7% of all small businesses, in 2022 Census data published by SBA Advocacy in February 2026. The other 29,811,495 have no paid staff.
Which state has the most small businesses?
California, with 4.34 million, followed by Texas (3.52 million) and Florida (3.49 million), per SBA's 2025 state profiles.
What counts as a small business in these figures?
For research, SBA Advocacy counts any independent business with fewer than 500 employees. That includes one-person firms with no payroll, which is why the total is so large.
How many people work for small businesses?
62.3 million people, which is 45.9% of US private-sector employees (2022 data, SBA FAQ of February 2026).
Every number on this page was checked at its original source (US Small Business Administration, Office of Advocacy, US Census Bureau). Free to cite with a link to this page.