Convenience

Percentage of All U.S. Businesses
Under
20
100–499
500
or more
20–99
Percentage of All U.S. Workers
Under
20
100–499
500
or more
20–99
Number of Employees
(b)
Number of Employees
(a)
F I G U R E 5 . 1
The Importance of Small Business in the United States
(a) Approximately 86 percent of all U.S. businesses employ fewer than 20 people; another 11.7 percent
employ between 20 and 99 people. In contrast, only about 2.1 percent employ between 100 and 499
workers, and another 0.2 percent employ 500 or more.
(b) 24.5 percent of all U.S. workers are employed by firms with fewer than 20 people; another 29.6 percent
work in firms that employ between 20 and 99 people. 25.5 percent of U.S. workers are employed by firms
with 100–499 employees, and another 20.3 percent work for businesses that employ 500 or more total
employees.
Source: U.S. Census Bureau,
Statistical Abstract of the United States
, 2010 (Washington, DC: Government
Printing Office, 2011).
130
Part 2:
Planning
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25.5 percent of U.S. workers are employed by firms with 100 to 499 employees, and another
20.3 percent work for businesses that employ 500 or more total employees.
On the basis of numbers alone, then, small business is a strong presence in the econ-
omy, which is also true in virtually all of the world’s mature economies. In Germany, for
example, companies with fewer than 500 employees produce two-thirds of the nation’s
gross national product, train nine of ten apprentices, and employ four of every five
workers. Small businesses also play major roles in the economies of Italy, France, and
Brazil. In addition, experts agree that small businesses will be quite important in the
emerging economies of countries such as Russia and Vietnam. The contribution of
small business can be measured in terms of its effects on key aspects of an economic
system. In the United States, these aspects include job creation, innovation, and importance
to big business.