# Small Business Statistics 2026: US and UK Counts, Jobs, Survival and New Applications

Updated 2026-10-29. Checked by StatisticsGlobal editorial team. US SBA Office of Advocacy, US Census Bureau, UK Department for Business and Trade and Office for National Statistics, 5 source documents.
Canonical: https://statisticsglobal.org/small-business-statistics/

The US had 36,207,130 small businesses in 2022, according to the US SBA Office of Advocacy. That is 99.94% of all US businesses, calculated by StatisticsGlobal. Most have no staff. 29.8 million had no employees and 6.4 million had paid employees. Small businesses employ 62.3 million people, 45.9% of private-sector workers. In the UK, SMEs made up 99.85% of the 5.69 million private sector businesses at the start of 2025, according to the Department for Business and Trade.

## Key statistics

- There were 36,207,130 small businesses in the US in 2022, according to the US SBA Office of Advocacy.
- US small businesses employed 62.3 million people, 45.9% of private-sector workers, according to US SBA Office of Advocacy figures published in 2026.
- An average of 49.2% of new US employer establishments survived at least five years over the 1994 to 2022 cohorts, according to the US SBA Office of Advocacy.
- US business applications reached 576,264 in July 2026, the highest monthly total since the series began in 2004, calculated by StatisticsGlobal from US Census Bureau data.
- SMEs made up 99.85% of UK private sector businesses at the start of 2025, according to the UK Department for Business and Trade.

## How many small businesses are in the US

The SBA Office of Advocacy counts any independent business with fewer than 500 employees as small. Its 2026 FAQ uses 2022 Census counts, the latest available.

The US had 36,207,130 small businesses in 2022 and 21,041 large ones. That is about 1,721 small businesses for every large one. Small firms made up 99.94% of all businesses, calculated by StatisticsGlobal from the two SBA counts.

Most small businesses are one person working alone. 29.8 million had no employees, 4.7 for every small business with staff. 86.7% of these nonemployers were sole proprietorships. Their number nearly doubled from 15.4 million in 1997, a rise of 94%. Small employers look different. 55.0% of them were S corporations.

Women owned 14 million businesses in 2022, 40.4% of those that could be classified. Their share was lower among employers, at 23.2%. Veterans owned 1.7 million businesses, 4.8% of the total. About one in four employer firms, 26.1%, was family-owned.

- There were 36,207,130 small businesses in the US in 2022, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- 29,811,495 US small businesses, 82.3% of the total, had no employees in 2022, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- 6,395,635 US small businesses, 17.7% of the total, had paid employees in 2022, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- The US had 21,041 large businesses with 500 or more employees in 2022, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- Small businesses made up 99.94% of all US businesses in 2022, calculated by StatisticsGlobal from US SBA Office of Advocacy data. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- The US had about 1,721 small businesses for every large business in 2022, calculated by StatisticsGlobal from US SBA Office of Advocacy data. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- The US had 4.7 small businesses with no employees for every small business with employees in 2022, calculated by StatisticsGlobal from US SBA Office of Advocacy data. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- US nonemployer businesses rose from 15.4 million in 1997 to 29.8 million in 2022, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- The number of US nonemployer businesses grew 94% between 1997 and 2022, calculated by StatisticsGlobal from US SBA Office of Advocacy data. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- 86.7% of US nonemployer businesses were sole proprietorships in 2022, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- 55.0% of US small employer firms were S corporations in 2022, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- Women owned 14 million US businesses in 2022, 40.4% of all classifiable businesses, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- Women owned 23.2% of US employer firms in 2022, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- Veterans owned 1.7 million US businesses in 2022, 4.8% of all businesses, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- 26.1% of US employer firms were family-owned in 2022, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf

Table: US businesses by size and type, 2022

| Group | Businesses | Share of small businesses |
|---|---|---|
| Small businesses with no employees (nonemployers) | 29,811,495 | 82.3% |
| Small businesses with paid employees | 6,395,635 | 17.7% |
| All small businesses (under 500 employees) | 36,207,130 | 100% |
| Large businesses (500 or more employees) | 21,041 | Not applicable |

Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026, from Census Bureau 2022 SUSB and Nonemployer Statistics.

## Small business share of employment, GDP and exports

Small businesses are almost every firm but a smaller part of jobs, pay and output. SBA's share table does not state a data year for each row.

Small businesses employed 62.3 million people, 45.9% of private-sector workers. They paid 38.7% of private payroll, $3.5 trillion. So they hold more of the jobs than of the pay, a gap of 7.2 points. Dividing payroll by workers gives about $56,000 per small business employee. That is rough, as SBA rounds the payroll total.

Small firms drive net job growth. From January 1995 to December 2024 they created 20.7 million net new jobs, against 13.2 million at large firms. That is 61% of the total, or 1.6 times the large-firm figure. They also took the biggest hit in 2020, losing 9.1 million jobs between the first and second quarters. SBA notes that sizing firms by current employment lowers the small-firm share of job growth.

Almost every exporter is small. 270,014 small exporters made up 97.2% of US exporters but shipped only 33.0% of known export value, $588.4 billion. That works out at about $2.2 million per small exporter. Small firms matter more outside cities. They held 56.6% of rural jobs and 47.5% of metro jobs in 2022.

AI use is still rare. 7.6% of businesses used AI between September 2024 and August 2025. Firms with fewer than five employees were at 8.2%, close to the 11.4% for firms with more than 250. For how small firms hire and work, see our [remote work statistics](https://statisticsglobal.org/remote-work-statistics/).

- US small businesses employed 62.3 million people, 45.9% of private-sector workers, according to US SBA Office of Advocacy figures published in 2026. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- Small businesses accounted for 43.5% of US GDP, according to US SBA Office of Advocacy figures published in 2026. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- US small businesses paid 38.7% of private-sector payroll, or $3.5 trillion, according to US SBA Office of Advocacy figures published in 2026. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- US small businesses took 35.0% of private-sector receipts, or $17.8 trillion, according to US SBA Office of Advocacy figures published in 2026. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- Small businesses made up 99.7% of US firms with paid employees, according to US SBA Office of Advocacy figures published in 2026. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- US small businesses had 45.9% of private-sector jobs but paid 38.7% of private payroll, a gap of 7.2 points in 2026 figures, calculated by StatisticsGlobal from US SBA Office of Advocacy data. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- US small businesses paid about $56,000 in payroll per worker in 2026 SBA figures, calculated by StatisticsGlobal from US SBA Office of Advocacy data. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- US small businesses created 20.7 million net new jobs from January 1995 to December 2024, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- US large businesses created 13.2 million net new jobs from January 1995 to December 2024, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- Small businesses accounted for 61% of US net new jobs from 1995 to 2024, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- US small businesses created 1.6 times as many net new jobs as large businesses from 1995 to 2024, calculated by StatisticsGlobal from US SBA Office of Advocacy data. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- US small businesses lost 9.1 million jobs between the first and second quarters of 2020, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- Small businesses accounted for 56.6% of employment in rural US areas in 2022, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- Small businesses accounted for 47.5% of employment in US metro areas in 2022, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- Small businesses held a 9.1-point larger share of jobs in rural US areas than in metro areas in 2022, calculated by StatisticsGlobal from US SBA Office of Advocacy data. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- 270,014 US small businesses exported, 97.2% of all US exporters, according to US SBA Office of Advocacy figures published in 2026. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- US small businesses accounted for 33.0% of known US export value, or $588.4 billion, according to US SBA Office of Advocacy figures published in 2026. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- The average US small exporter shipped about $2.2 million of goods in 2026 SBA figures, calculated by StatisticsGlobal from US SBA Office of Advocacy data. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- Small firms were 97.2% of US exporters but shipped 33.0% of known export value, a gap of 64.2 points in 2026 figures, calculated by StatisticsGlobal from US SBA Office of Advocacy data. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- 7.6% of US businesses used artificial intelligence between September 2024 and August 2025, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- 8.2% of US businesses with fewer than five employees used AI between September 2024 and August 2025, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf

Table: Small businesses' share of the US economy, SBA Office of Advocacy figures published in 2026

| Measure | Small business share | Small business amount |
|---|---|---|
| All firms | 99.9% | 36.2 million firms |
| Firms with paid employees | 99.7% | Not stated |
| Exporters | 97.2% | 270,014 firms |
| Private-sector employees | 45.9% | 62.3 million people |
| Gross domestic product | 43.5% | Not stated |
| Private-sector payroll | 38.7% | $3.5 trillion |
| Private-sector receipts | 35.0% | $17.8 trillion |
| Known export value | 33.0% | $588.4 billion |

Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026. Built from SUSB, NES, ITA, SBGDP and the Advocacy US profile. Data years are not given row by row.

## Small business survival rates by year

SBA reports survival for new employer establishments, averaged across every yearly cohort from 1994 to 2022. A business with several sites counts each one.

About half of new US employer establishments are still open after five years. On average 67.7% survive two years, 49.2% five years, 33.9% ten years and 25.5% fifteen years. So roughly one in three closes within two years, and one in two within five.

The risk falls with age. 72.7% of sites that reach two years go on to reach five, calculated by StatisticsGlobal. 69.5% of five-year-olds reach ten, and 76.1% of ten-year-olds reach fifteen. A business that has lasted ten years is far safer than a new one.

Churn is high every year. In 2023, 1.3 million establishments opened for the first time and about 1.2 million closed for good. Startups were 14.2% of establishments in 2023, up 1.7 points from 12.5% in 2019. The BLS figures for one cohort, firms born in 2013, are on our [startup statistics](https://statisticsglobal.org/startup-statistics/) page.

- An average of 67.7% of new US employer establishments survived at least two years over the 1994 to 2022 cohorts, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- An average of 49.2% of new US employer establishments survived at least five years over the 1994 to 2022 cohorts, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- An average of 33.9% of new US employer establishments survived at least 10 years over the 1994 to 2022 cohorts, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- An average of 25.5% of new US employer establishments survived at least 15 years over the 1994 to 2022 cohorts, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- About 32.3% of new US employer establishments closed within two years, averaged over 1994 to 2022, calculated by StatisticsGlobal from US SBA Office of Advocacy data. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- About 50.8% of new US employer establishments closed within five years, averaged over 1994 to 2022, calculated by StatisticsGlobal from US SBA Office of Advocacy data. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- 72.7% of US establishments that survived two years went on to reach five, averaged over 1994 to 2022, calculated by StatisticsGlobal from US SBA Office of Advocacy data. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- 69.5% of US establishments that reached five years went on to reach 10, averaged over 1994 to 2022, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- 76.1% of US establishments that reached 10 years went on to reach 15, averaged over 1994 to 2022, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- 1.3 million US business establishments opened for the first time in 2023, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- About 1.2 million US business establishments closed permanently in 2023, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- Startups made up 14.2% of US business establishments in 2023, up from 12.5% in 2019, according to the US SBA Office of Advocacy. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
- The startup share of US business establishments rose 1.7 points between 2019 and 2023, calculated by StatisticsGlobal from US SBA Office of Advocacy data. Source: US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026 (February 2026, accessed 29 October 2026) https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf

Table: Average survival rate of new US employer establishments by age, 1994 to 2022 cohorts

| Years since opening | Still open | Closed (calculated) |
|---|---|---|
| 2 | 67.7% | 32.3% |
| 5 | 49.2% | 50.8% |
| 10 | 33.9% | 66.1% |
| 15 | 25.5% | 74.5% |

Source: US SBA Office of Advocacy, from BLS Business Employment Dynamics. Closed share calculated by StatisticsGlobal as 100% minus the survival rate.

## New business applications by month and state

The Census Bureau counts applications for an employer ID number each month. Not every application becomes a business, but the series is the fastest signal of new activity.

US business applications were 534,947 in September 2026, seasonally adjusted. That is up 0.5% on August and 4.4% on September 2025. July 2026 was the busiest month on record, at 576,264. It beat the July 2020 pandemic spike of 546,719.

Over the first nine months of 2026, applications averaged 525,387 a month. That is 15.2% above the same months of 2025 and 81% above 2019. High-propensity applications, the ones most likely to hire, grew more slowly, up 3.1% on a year earlier in September. So most of the growth is in applications that are less likely to lead to hiring.

Florida led the states in September 2026 with 58,694 applications. Florida, California and Texas filed 30.2% of the US total between them. Texas and North Carolina were down on a year earlier. New Jersey grew fastest of the 10 largest states, up 14.8%. Weekly totals and state trends are on our [startup statistics](https://statisticsglobal.org/startup-statistics/) page.

- US business applications were 534,947 in September 2026, seasonally adjusted, up 0.5% on August, according to the US Census Bureau. Source: US Census Bureau, Business Formation Statistics, September 2026 (release CB26-163) (14 October 2026) https://www.census.gov/econ/bfs/pdf/bfs_current.pdf
- US business applications in September 2026 were 4.4% higher than in September 2025, seasonally adjusted, calculated by StatisticsGlobal from US Census Bureau data. Source: US Census Bureau, Business Formation Statistics, monthly data file (bfs_monthly.csv) (monthly release of 14 October 2026, accessed 29 October 2026) https://www.census.gov/econ/bfs/csv/bfs_monthly.csv
- US business applications reached 576,264 in July 2026, the highest monthly total since the series began in 2004, calculated by StatisticsGlobal from US Census Bureau data. Source: US Census Bureau, Business Formation Statistics, monthly data file (bfs_monthly.csv) (monthly release of 14 October 2026, accessed 29 October 2026) https://www.census.gov/econ/bfs/csv/bfs_monthly.csv
- US business applications averaged 525,387 a month from January to September 2026, seasonally adjusted, calculated by StatisticsGlobal from US Census Bureau data. Source: US Census Bureau, Business Formation Statistics, monthly data file (bfs_monthly.csv) (monthly release of 14 October 2026, accessed 29 October 2026) https://www.census.gov/econ/bfs/csv/bfs_monthly.csv
- Monthly US business applications from January to September 2026 were 15.2% above the same months of 2025, calculated by StatisticsGlobal from US Census Bureau data. Source: US Census Bureau, Business Formation Statistics, monthly data file (bfs_monthly.csv) (monthly release of 14 October 2026, accessed 29 October 2026) https://www.census.gov/econ/bfs/csv/bfs_monthly.csv
- Monthly US business applications from January to September 2026 were 81% above the same months of 2019, calculated by StatisticsGlobal from US Census Bureau data. Source: US Census Bureau, Business Formation Statistics, monthly data file (bfs_monthly.csv) (monthly release of 14 October 2026, accessed 29 October 2026) https://www.census.gov/econ/bfs/csv/bfs_monthly.csv
- High-propensity US business applications were 3.1% higher in September 2026 than a year earlier, seasonally adjusted, calculated by StatisticsGlobal from US Census Bureau data. Source: US Census Bureau, Business Formation Statistics, monthly data file (bfs_monthly.csv) (monthly release of 14 October 2026, accessed 29 October 2026) https://www.census.gov/econ/bfs/csv/bfs_monthly.csv
- Florida had 58,694 business applications in September 2026, seasonally adjusted, the most of any US state, calculated by StatisticsGlobal from US Census Bureau data. Source: US Census Bureau, Business Formation Statistics, monthly data file (bfs_monthly.csv) (monthly release of 14 October 2026, accessed 29 October 2026) https://www.census.gov/econ/bfs/csv/bfs_monthly.csv
- Florida, California and Texas filed 30.2% of US business applications in September 2026, calculated by StatisticsGlobal from US Census Bureau data. Source: US Census Bureau, Business Formation Statistics, monthly data file (bfs_monthly.csv) (monthly release of 14 October 2026, accessed 29 October 2026) https://www.census.gov/econ/bfs/csv/bfs_monthly.csv
- New Jersey business applications rose 14.8% in the year to September 2026, the fastest growth among the 10 largest states, calculated by StatisticsGlobal from US Census Bureau data. Source: US Census Bureau, Business Formation Statistics, monthly data file (bfs_monthly.csv) (monthly release of 14 October 2026, accessed 29 October 2026) https://www.census.gov/econ/bfs/csv/bfs_monthly.csv

Table: Business applications in the 10 states with the most, September 2026 vs September 2025, seasonally adjusted

| State | September 2026 | September 2025 | Change |
|---|---|---|---|
| Florida | 58,694 | 57,601 | +1.9% |
| California | 52,974 | 48,039 | +10.3% |
| Texas | 49,761 | 52,310 | -4.9% |
| New York | 26,915 | 26,043 | +3.3% |
| Georgia | 23,741 | 22,486 | +5.6% |
| North Carolina | 17,324 | 18,394 | -5.8% |
| Illinois | 16,241 | 16,758 | -3.1% |
| New Jersey | 15,632 | 13,619 | +14.8% |
| Ohio | 15,311 | 15,295 | +0.1% |
| Pennsylvania | 14,659 | 13,763 | +6.5% |
| United States | 534,947 | 512,569 | +4.4% |

Source: US Census Bureau, Business Formation Statistics monthly file, released 14 October 2026. Ranking and changes calculated by StatisticsGlobal.

## Small business statistics UK

The UK publishes two counts. DBT includes every private business, registered or not. ONS counts only businesses registered for VAT or PAYE.

The UK had 5,690,265 private sector businesses at the start of 2025, up 3.5% in a year. SMEs were 99.85% of them and provided 60% of private jobs and 51% of turnover. Three in four businesses, 4.27 million, had no employees. Sole proprietors made up 57%. The count is 26.9% above 2010 but still 4.9% below its 2020 peak.

The ONS register gives a narrower count of 2.79 million VAT or PAYE businesses in March 2026. It grew 1.9% in a year, up from 0.4% the year before. 43.0% of registered companies were single-employee limited companies. Every region grew in 2026 for the first time since 2017.

Where you live matters. London had 1,436 businesses per 10,000 adults, 1.9 times the rate in Wales (742). Wales also lost 26,000 businesses in a year, a fall of 12%, while London gained the most.

The US and UK numbers look alike at the top line, with small firms at 99.9% and 99.85% of all businesses. Below that they differ. UK SMEs hold 60% of private jobs against 45.9% for US small businesses, a gap of 14.1 points, even though the UK cut-off is lower. A new DBT release is due in autumn 2026 and this page will be updated when it lands.

- The UK had 5,690,265 private sector businesses at the start of 2025, according to the UK Department for Business and Trade. Source: UK Department for Business and Trade, Business population estimates for the UK and regions 2025: statistical release (2025, accessed 29 October 2026) https://www.gov.uk/government/statistics/business-population-estimates-2025/business-population-estimates-for-the-uk-and-regions-2025-statistical-release
- The UK private sector business population grew 3.5%, or 191,000 businesses, between 2024 and 2025, according to the UK Department for Business and Trade. Source: UK Department for Business and Trade, Business population estimates for the UK and regions 2025: statistical release (2025, accessed 29 October 2026) https://www.gov.uk/government/statistics/business-population-estimates-2025/business-population-estimates-for-the-uk-and-regions-2025-statistical-release
- SMEs made up 99.85% of UK private sector businesses at the start of 2025, according to the UK Department for Business and Trade. Source: UK Department for Business and Trade, Business population estimates for the UK and regions 2025: statistical release (2025, accessed 29 October 2026) https://www.gov.uk/government/statistics/business-population-estimates-2025/business-population-estimates-for-the-uk-and-regions-2025-statistical-release
- UK SMEs accounted for 60% of private sector employment, 16.9 million jobs, at the start of 2025, according to the UK Department for Business and Trade. Source: UK Department for Business and Trade, Business population estimates for the UK and regions 2025: statistical release (2025, accessed 29 October 2026) https://www.gov.uk/government/statistics/business-population-estimates-2025/business-population-estimates-for-the-uk-and-regions-2025-statistical-release
- UK SMEs accounted for 51% of private sector turnover, £2.8 trillion, in 2025, according to the UK Department for Business and Trade. Source: UK Department for Business and Trade, Business population estimates for the UK and regions 2025: statistical release (2025, accessed 29 October 2026) https://www.gov.uk/government/statistics/business-population-estimates-2025/business-population-estimates-for-the-uk-and-regions-2025-statistical-release
- 4,272,535 UK private sector businesses, 75% of the total, had no employees at the start of 2025, according to the UK Department for Business and Trade. Source: UK Department for Business and Trade, Business population estimates for the UK and regions 2025: statistical release (2025, accessed 29 October 2026) https://www.gov.uk/government/statistics/business-population-estimates-2025/business-population-estimates-for-the-uk-and-regions-2025-statistical-release
- Sole proprietorships made up 57% of UK private sector businesses, 3.2 million, at the start of 2025, according to the UK Department for Business and Trade. Source: UK Department for Business and Trade, Business population estimates for the UK and regions 2025: statistical release (2025, accessed 29 October 2026) https://www.gov.uk/government/statistics/business-population-estimates-2025/business-population-estimates-for-the-uk-and-regions-2025-statistical-release
- The UK business population grew 26.9%, or 1.2 million, between 2010 and 2025, according to the UK Department for Business and Trade. Source: UK Department for Business and Trade, Business population estimates for the UK and regions 2025: statistical release (2025, accessed 29 October 2026) https://www.gov.uk/government/statistics/business-population-estimates-2025/business-population-estimates-for-the-uk-and-regions-2025-statistical-release
- The UK business population was 4.9% lower in 2025 than at its 2020 peak, according to the UK Department for Business and Trade. Source: UK Department for Business and Trade, Business population estimates for the UK and regions 2025: statistical release (2025, accessed 29 October 2026) https://www.gov.uk/government/statistics/business-population-estimates-2025/business-population-estimates-for-the-uk-and-regions-2025-statistical-release
- London had 1,436 private sector businesses per 10,000 adults at the start of 2025, the most of any UK region, according to the UK Department for Business and Trade. Source: UK Department for Business and Trade, Business population estimates for the UK and regions 2025: statistical release (2025, accessed 29 October 2026) https://www.gov.uk/government/statistics/business-population-estimates-2025/business-population-estimates-for-the-uk-and-regions-2025-statistical-release
- Wales had 742 private sector businesses per 10,000 adults at the start of 2025, the fewest of any UK nation or region, according to the UK Department for Business and Trade. Source: UK Department for Business and Trade, Business population estimates for the UK and regions 2025: statistical release (2025, accessed 29 October 2026) https://www.gov.uk/government/statistics/business-population-estimates-2025/business-population-estimates-for-the-uk-and-regions-2025-statistical-release
- London had 1.9 times as many businesses per adult as Wales at the start of 2025, calculated by StatisticsGlobal from UK Department for Business and Trade data. Source: UK Department for Business and Trade, Business population estimates for the UK and regions 2025: statistical release (2025, accessed 29 October 2026) https://www.gov.uk/government/statistics/business-population-estimates-2025/business-population-estimates-for-the-uk-and-regions-2025-statistical-release
- Wales had 26,000 fewer private sector businesses at the start of 2025 than a year earlier, a fall of 12%, according to the UK Department for Business and Trade. Source: UK Department for Business and Trade, Business population estimates for the UK and regions 2025: statistical release (2025, accessed 29 October 2026) https://www.gov.uk/government/statistics/business-population-estimates-2025/business-population-estimates-for-the-uk-and-regions-2025-statistical-release
- The UK had 2.79 million VAT and/or PAYE registered businesses in March 2026, up 1.9% on March 2025, according to the Office for National Statistics. Source: Office for National Statistics, UK business; activity, size and location: 2026 (24 September 2026) https://www.ons.gov.uk/businessindustryandtrade/business/activitysizeandlocation/bulletins/ukbusinessactivitysizeandlocation/2026
- UK registered businesses grew 1.9% in the year to March 2026, up from 0.4% a year earlier, calculated by StatisticsGlobal from Office for National Statistics data. Source: Office for National Statistics, UK business; activity, size and location: 2026 (24 September 2026) https://www.ons.gov.uk/businessindustryandtrade/business/activitysizeandlocation/bulletins/ukbusinessactivitysizeandlocation/2026
- London had 553,000 VAT or PAYE registered businesses in March 2026, 19.8% of the UK total, according to the Office for National Statistics. Source: Office for National Statistics, UK business; activity, size and location: 2026 (24 September 2026) https://www.ons.gov.uk/businessindustryandtrade/business/activitysizeandlocation/bulletins/ukbusinessactivitysizeandlocation/2026
- Companies made up 77.3% of UK VAT or PAYE registered businesses in March 2026, according to the Office for National Statistics. Source: Office for National Statistics, UK business; activity, size and location: 2026 (24 September 2026) https://www.ons.gov.uk/businessindustryandtrade/business/activitysizeandlocation/bulletins/ukbusinessactivitysizeandlocation/2026
- 43.0% of UK registered companies were single-employee limited companies in 2026, according to the Office for National Statistics. Source: Office for National Statistics, UK business; activity, size and location: 2026 (24 September 2026) https://www.ons.gov.uk/businessindustryandtrade/business/activitysizeandlocation/bulletins/ukbusinessactivitysizeandlocation/2026
- Small and medium firms had a 14.1-point larger share of private jobs in the UK (60%, 2025) than small firms in the US (45.9%, 2026 figures), calculated by StatisticsGlobal from DBT and SBA data. Source: UK Department for Business and Trade, Business population estimates for the UK and regions 2025: statistical release (2025, accessed 29 October 2026) https://www.gov.uk/government/statistics/business-population-estimates-2025/business-population-estimates-for-the-uk-and-regions-2025-statistical-release
- 82.3% of US small businesses had no employees in 2022, against 75.1% of UK businesses in 2025, calculated by StatisticsGlobal from SBA and DBT data. Source: UK Department for Business and Trade, Business population estimates for the UK and regions 2025: statistical release (2025, accessed 29 October 2026) https://www.gov.uk/government/statistics/business-population-estimates-2025/business-population-estimates-for-the-uk-and-regions-2025-statistical-release

Table: Small businesses in the US and UK compared, latest official figures

| Measure | United States | United Kingdom |
|---|---|---|
| Size cut-off | Under 500 employees | Under 250 employees (SME) |
| Number of businesses | 36.2 million small (2022) | 5.69 million in total (start of 2025) |
| Small share of all businesses | 99.9% | 99.85% |
| Small share of private jobs | 45.9% | 60% |
| Businesses with no employees | 82.3% of small businesses | 75.1% of all businesses (calculated) |

Sources: US SBA Office of Advocacy, FAQ 2026; UK Department for Business and Trade, Business population estimates 2025. UK no-employee share calculated by StatisticsGlobal from 4,272,535 of 5,690,265. Definitions and years differ.

## How the sources measure small businesses

The SBA Office of Advocacy compiles Census and BLS data. Its counts are from the 2022 Statistics of US Businesses and Nonemployer Statistics. It defines a small business as an independent firm with fewer than 500 employees. The share table for jobs, GDP, payroll and exports cites several datasets and gives no year for each row, so treat those shares as the latest SBA estimate rather than a single year.

SBA's survival rates come from BLS Business Employment Dynamics. They follow establishments, not firms, and average the 1994 to 2022 cohorts. Its job creation figures size firms by current employment. SBA says this lowers the small-firm share compared with sizing by original size.

Census business applications are filings for an employer ID number. Many never become businesses with staff. We use the seasonally adjusted monthly file. State series are adjusted separately, so they do not add exactly to the US total. Census revises the series each year, next on 12 November 2026.

In the UK, DBT's business population estimates cover every private business, including unregistered sole traders. ONS covers only businesses registered for VAT or PAYE on 13 March 2026, so its count is about half the size. UK SMEs are defined as under 250 employees, which makes direct comparison with the US imperfect.


## Frequently asked questions

### How many small businesses are there in the US?

There were 36,207,130 small businesses in the US in 2022, according to the US SBA Office of Advocacy. 29.8 million had no employees and 6.4 million had paid employees.

### What percentage of small businesses fail in the first five years?

About 50.8% of new US employer establishments closed within five years, averaged over the 1994 to 2022 cohorts, calculated by StatisticsGlobal from SBA Office of Advocacy data. 49.2% survived five years.

### How many people work for small businesses?

US small businesses employed 62.3 million people, 45.9% of private-sector workers, according to SBA Office of Advocacy figures published in 2026. In the UK, SMEs accounted for 60% of private sector employment at the start of 2025, according to DBT.

### Are more people starting businesses than last year?

Yes. US business applications averaged 525,387 a month from January to September 2026, 15.2% more than in the same months of 2025, calculated by StatisticsGlobal from US Census Bureau data. July 2026 set a record of 576,264.

### How many small businesses are there in the UK?

The UK had 5,690,265 private sector businesses at the start of 2025, and 99.85% were SMEs, according to the Department for Business and Trade. 75% had no employees.

### Which US state has the most new businesses?

Florida had 58,694 business applications in September 2026, seasonally adjusted, the most of any state. California was second with 52,974 and Texas third with 49,761, according to US Census Bureau data.

## Sources

1. US SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026, February 2026, accessed 29 October 2026. https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf
2. US Census Bureau, Business Formation Statistics, monthly data file (bfs_monthly.csv), monthly release of 14 October 2026, accessed 29 October 2026. https://www.census.gov/econ/bfs/csv/bfs_monthly.csv
3. UK Department for Business and Trade, Business population estimates for the UK and regions 2025: statistical release, 2025, accessed 29 October 2026. https://www.gov.uk/government/statistics/business-population-estimates-2025/business-population-estimates-for-the-uk-and-regions-2025-statistical-release
4. US Census Bureau, Business Formation Statistics, September 2026 (release CB26-163), 14 October 2026. https://www.census.gov/econ/bfs/pdf/bfs_current.pdf
5. Office for National Statistics, UK business; activity, size and location: 2026, 24 September 2026. https://www.ons.gov.uk/businessindustryandtrade/business/activitysizeandlocation/bulletins/ukbusinessactivitysizeandlocation/2026