Small Businesses FAQs
The Small Business Administration’s Office of Advocacy released its annual update to its “Frequently Asked Questions” document. It estimates that there were 29.6 million small businesses in the U.S. in 2008. An estimated 627,200 new employer firms began operation in 2008, and 595,600 firms closed that year.
Small businesses continue to generate the majority of net new jobs. Firms with fewer than 500 employees accounted for 64 percent (or 14.5 million) of the 22.5 million net new jobs between 1993 and the third quarter of 2008.
The document includes other information about the contributions of small business to the U.S. economy and the dynamics of this important economic sector, such as survival rates and financing structure. It also highlights how some policy areas, such as regulation and health care, impact entrepreneurs.
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For more facts about entrepreneurship, the Kauffman Foundation offers its Research Fast Facts.