The SBA Office of Advocacy recently updated some statistics related to the role small businesses play in the creation of U.S. jobs. (For a much deeper dive into the role of small business in the U.S. economy, see our “Answers to 20 of the most frequently asked questions about small business.”)

Small businesses create 2 out of 3 net new private-sector jobs.

Since the end of the Great Recession (June, 2009), how many jobs have been created by small businesses?

8.3 million | Jobs created by small businesses (up to 500 employees) since end of the great recession
5.1 million | Jobs created by private-sector large businesses (500+ employees) since end of the great recession
62% | Of all private sector jobs created since the great recession, the percentage created by small businesses

This closely matches the historic rate of small business job creation over the last 25 years.

Source: Bureau of Labor Statistics, Business Employment Dynamics

Existing businesses create two out of three net new private-sector jobs.

66% | Percentage of the private-sector net new jobs that were created by existing business (not startups)/

Source: Bureau of Labor Statistics, Business Employment Dynamics

Existing businesses created nine out of 10 new private-sector job gains.

Over the last two decades, the bulk of new jobs are from expansions of existing firms, both large and small. (Chart 1.)

87% | Percentage of total job gains attributed to existing businesses
13% | Percentage of total job gains attributed to startup businesses

Source: Bureau of Labor Statistics, Business Employment Dynamics

Source: Brian Headd, SBA Office of Advocacy economist, September, 2017

Photo: istock

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