How Many Small-Business Employees Are Out There?

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BOB JIM DALE 10:29AM November 20, 2012

It is incorrect information to say that small businesses are defined by 500 or fewer employees. By definition, the SBA has classifications that vary by industry, some using number of employees and others gross sales / revenues. Misinformation on this topic is not helping the debate. Interestingly enough, the US Government awards many contracts as "small business set aside" classifications, but some of those contracts will put the "successful" contractor out of future SB set-aside because it changes their status based on revenues.

Deano of GA 2:14PM November 17, 2012

I am self emlpoyed in Home Repair and Remodeling. I have a college degree and very good mechanical skills and experience.I am also 57 years old. I have dealt with age discrimination in job interviews. Even though I am in very good health I know companies do not like to hire Maintenance Workers my age because they feel they will be injured on the job.They also know they can hire younger men at a lower wage and let them gain knowledge and experience along the way.This is why I use my skills to get by in this bad economy.Many people my age do this now.

ron of AZ 12:14PM September 07, 2010

How are you today, I hope all is well and your job too.I saw your comment at the site peak interest you to help me find a better job at USA. And a job that i can ann a good salary .Please get back to me soon as possible.
From O.S.J Ogbonna

Onyekachi S.J Ogbonna of CA 12:46PM August 31, 2010

A small business is not 500 people, that is skewing the percentages. A small business needs to be clearly defined, and reasonably defined. A branch of a national bank is not a small business. Neither is a manufacturer that employs 450 people. A small business may create a lot of jobs, but how many of those jobs are still in existance in a year, two years, three years? Small businesses go out of business all of the time, resulting in no income for the employees left in the wake.
Statistically the US needs to define what is a small business; by number of staff; size of payroll; and size of revenue generated annually. Then educated, coherent coversations can actually take place. Without better definitions as to what a small business is, it is impossible to generate adequate business development environments to assist these companies.

PK of AZ 2:21AM October 29, 2009

I disagree with Bryan of MI who says that has a sole-proprietor working for himself with no employee isn't contributing anything to the employment pool. Yes, he is. If he weren't self-employed, he would have to be working a job to make money to pay his way. By him being self-employed the job he would have "taken" is able to go to a person who is not self-employed. To me that is a form of contribution.
Also, by being self-employed he's working and not potentially unemployed and potentially collecting unemployment. This is another way he's contributing to the employment pool (of sorts).
Really Bryan, you should give yourself more credit.

Theresa of CA 10:07PM October 06, 2009

According to US Bureau of Labor Statistics, there are about 16 million self-employed people in America and is an important source of jobs and family income.

Steve King of CA 11:55AM July 31, 2009

I wonder how many "small businesses" are actually "sole proprietorships" -- people who work by themselves, for themselves? These sole proprietorships don't employ anyone other than themselves. They create 1 job only -- and if the business is a side-line (supported by a full-time employment elsewhere), they add nothing to the employment picture.
This is not to say sole proprietorships are bad -- I am one as well (full-time). I don't contribute to the employment model, other than to earn income for myself.
I'm just trying to find out the reality behind the claim that "small businesses are the backbone of America" and "small businesses create more jobs than anyone else". As you point out, the number is somewhere between 43-51%, and that's using a pretty big number (500 employees) to define a small business.
Most politicians advocating for "small business" conjure up pictures of Mom & Pop running a small store, with their kids and their kids' friends helping out. But 500 kids!?! Not really the same picture.

Bryan of MI 6:47AM July 27, 2009

During past 10-15 years of "global economic" reform and "free trade" our Feds and financial clans have been successfully working on conversion of our system into monopolistic body with socialistic engine. They wanted to give birth to an ugly mutant and they did it. I call the new system Mastrubism, or you give it your name. It's partly socialism due to high spending on people at the bottom and free huge money for selected by government leading giants/companies in their industries. This reminds me Soviet Union/USSR a lot. We used to have full government control of all industries starting with manufacturing, then distribution to warehouses and ending with large government controlled chains of small and large stores/retailers. That basically what's going on now slowly but surely here in USA. Government taking over large giants by borrowing them fresh printed money which costs government almost nothing. This is hidden type of step-by-step privatization of these formerly privately own chains. This is why government was demolishing our normal capitalistic economy starting from 1970 by almost uncontrolled import of import cars and other products and making local manufacturers go out of business. It started with manufacturers, then professionals such as programmers and engineers in 2000 and up. Then the most deadly hit was introducing and empowering by credits and patronage "small business killer chains" like Walmart, Kmart, HomeDepot, Lowe's, Staples, Target, BestBuy, Sears, Marshals, Liquidator, Ikea, etc. They all say to us "Save More, Live Better" or "More Saving, More Doing". Oh yes! However what they not telling us, that we eventually will close most of our small businesses operated by us, our family members, friends, neighbors, etc. Who will benefit from buying from these stores? Mostly people in need who are on government assistance, people with stable jobs with stable companies, government employees, and similar individuals. If you have more money then you can spend per month you will survive without going to this kind of large stores which are basically working for government now. The goal here is to socialize the retail industry by slowly and surely killing small independent retailers with "price beating"/ "wholesale to public" concepts and tools. Who is wining here? Nobody, but government and its direct investors/clans. What it does to our Capitalism and USA market? It kills it. The first rule of Capitalism is to protect small businesses and local manufacturers from monopolists in their industries. There are has to be no blood sucking giants, if we want to preserve healthy capitalism and its creative spirit. Government was created to protect small businesses from giant monopolies and uncontrolled imports. It failed to do so and sold its soul to clans. Every smart and talented small business owner knows that it's impossible to fight a wholesale to public giant, and most of businesses give up to fight or just not being given new births anymore.

AC of NY 4:34AM July 19, 2009

So many people are now working for the state earning unemployment checks. Starting a small business opens the door for employment and sets a path for a new life. I was laid off by a Danish company who was recently bought by a company in Holland. I partnered with a Web Design Company for targeting small businesses and it is doing very well. Anyone can start a online business using a program called drop shipping. They list products for sale on a Web site, once it sells they notify the vendor who ships the product. Another option is affiliate sales where one earns a commission selling vendors products by use of banners, storefronts and product links.

Stu Cluff of WA 12:44PM July 17, 2009