98% Of All Business Is Small Business

Longtime readers of the Weekly Report will know I have stated “98% of all business is small business” on many occasions: in 2013, 2016, 2017, 2021, and last year, the phrase popped into two blogs I wrote.

The SBA says that 99.9% of companies have less than 1,000 employees. 98% of all businesses have less than 100 employees. They employ almost half of all US workers. Last year, 70% of all new jobs created in the US were by companies with 100 or fewer employees.

Separately, these businesses, dotted through each and every community, do not have any political clout. They can’t get preferential treatment from local, state, or federal organizations because they don’t have lobbyists. They are subject to the same regulations as much larger companies despite having much smaller resources. As a result, they pay a disproportionate amount of tax and face greater regulatory hurdles than their big top 2% counterparts. 

Shopping at small businesses one day a year, the day after Black Friday, is not enough. They rely on your support every day of the year.

I spent time talking with business leaders at the US Chamber of Commerce and NFIB (National Federation of Independent Businesses) earlier this week. These organizations collectively provide a voice for small business owners. You may not have the ability to hire a lobbyist to meet with members of Congress or petition the state legislature to change a law or regulation, but they do. NFIB has a top 10 list of things they are working on behalf of small business owners.

Memberships in local chambers of commerce and other business organizations have declined precipitously over the last years. Between COVID-19 and the sluggish economy, many small businesses have decided to pull back on memberships. And that’s a shame. My advice is re-engage your local chamber and join NFIB if you’re not already a member.

Small businesses need to have a larger voice. Together, we can do that.