The United States has 36.2 million small businesses, representing 99.9% of all U.S. firms. But the typical business behind that number is not a smaller version of a large employer. Most have no paid employees at all.
| Business group | Count in SBA’s 2026 FAQ | Share of small businesses |
|---|---|---|
| Nonemployer firms | 29,811,495 | 82.3% |
| Employer firms | 6,395,635 | 17.7% |
| All small businesses | 36,207,130 | 100% |
Most small businesses are owner-operated
A nonemployer business has no paid employees and generally reports business income for federal tax purposes. This broad category includes sole proprietors, independent professionals, landlords, and other owner-operated businesses.
Nonemployers account for 82.3% of all small businesses. Employer firms—the businesses with payroll—make up the remaining 17.7%. That distinction is important whenever the total is used to discuss hiring: 36.2 million is a count of businesses, not a count of businesses that employ workers.
What qualifies as a small business?
For broad statistical research, the SBA Office of Advocacy generally treats an independent business with fewer than 500 employees as small.
That does not mean 500 employees is the rule in every setting. The size standards used to determine eligibility for SBA programs vary by industry and may be based on either employee count or annual receipts.
Government datasets also distinguish between a firm, meaning a business under common ownership or control, and an establishment, meaning an individual business location. One firm can operate many establishments, which is why counts from different programs may not match exactly.
The small-business population has changed
The largest change has been the growth of businesses without employees. The SBA reports that the nonemployer count rose from approximately 15.4 million in 1997 to 29.8 million in 2022—nearly doubling over 25 years. The number of small employer firms has also increased every year since 2011.
These trends show that the U.S. business population has expanded, particularly among owner-operated firms. They do not indicate whether every business is full-time or produces the same level of income: a side business and a full-time independent practice can both fall within the nonemployer category.
A note on the estimate
The 36,207,130 figure is the latest national estimate published by the SBA Office of Advocacy. Its components come from government datasets released on different schedules, so it should be described as the latest published SBA estimate rather than a live count of businesses operating in 2026.