Infographic: Micro and Small Businesses Dominate U.S. Economy

Note: This infographic has been updated from its original form. The initial post had incorrect state totals.

It’s well documented that much of America’s innovation and new job growth comes from young, small businesses. But just how many U.S. establishments are defined as “micro” (less than 10 employees) or “small” (10 to 99 employees)?

To find out, we took a look at the latest establishment data from the U.S. Census Bureau’s County Business Patterns. Sure enough, the numbers were even more staggering than we thought.

Just over 99% of establishments, as of 2007, fall into the micro or small category. Meanwhile, less than 1% of establishments have 100 or more employees.

Below is a graphic that ranks states by their percentage of micro-sized establishments. Note that establishments are defined by the Department of Labor as physical business locations. Based on this definition, a large business could have multiple micro or small establishments in the same region (e.g., a Wells Fargo branch with 20 employees is a small establishment, but those workers are part of a very large bank). Also self-proprietors — those who own unincorporated businesses — are not included in County Business Patterns data. 

If you have any questions or comments, please email Rob Sentz or call 208.883.3500.

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