Detroit City Wire

The Small Business Administration (SBA) classifies any independent business with fewer than 500 employees as a "small business." These small enterprises make up 99.9% of all businesses in the United States. As of July 2024, there are 34.8 million small businesses compared to 19,688 large businesses. These smaller firms employ 59 million people, representing 45.9% of all private-sector employees and contributing to 61.1% of overall job growth since 1995.

The demographics of small business owners reflect those of the broader business community. According to the latest data from the SBA, women own 39.4% of all businesses, including 21.6% of firms with employees. White entrepreneurs own 79.3% of businesses, while Black entrepreneurs account for 11%, Hispanic entrepreneurs for 14.5%, and Asian entrepreneurs for 9.3%.

Entrepreneurship saw a significant increase following the pandemic's onset, with new business applications rising by nearly 25% in 2020 — from 3.5 million to 4.4 million compared to the previous year, marking a historic high. Applications remained elevated in subsequent years: reaching 5.4 million in 2021 and slightly decreasing to about 5.1 million in 2022 before setting a new record at 5.5 million in 2023.

A specific category called "high-propensity" applications indicates businesses likely to have payrolls, suggesting plans to hire employees and pay wages. Data from the Census Bureau shows that these applications reached highs in both 2021 and again in 2023 after a decline in numbers during the previous year.

Despite economic challenges such as heightened inflation introducing volatility into the small business landscape post-pandemic, application numbers remain above pre-COVID levels as of October this year.

While data collection on small business activity is limited according to the Bureau of Economic Analysis, research indicates that large businesses grew faster and contributed more significantly to gross domestic product (GDP) between 1998 and 2014 than their smaller counterparts did during this period; however, small businesses still accounted for approximately half (43.5%) of US economic activity by GDP standards back then.

The Congressional Budget Office notes that small enterprises also contribute positively through productivity enhancement efforts which generate competitive pressure prompting larger companies toward innovation endeavors themselves.

Historically speaking federal support has been extended towards stimulating entrepreneurial efforts within this sector via initiatives spearheaded under agencies like SBA offering resources ranging from government-funded seed pools provided through programs such as Small Business Innovation Research or Technology Transfer projects aimed specifically at fostering startup development opportunities among other things; moreover American Rescue Plan enacted amidst COVID-19 crisis included provisions granting access tax credit schemes alongside Paycheck Protection Program loans tailored specifically towards aiding financially distressed operators struggling amid ongoing disruptions caused thereby pandemics-related circumstances globally affecting economies worldwide today alike locally here domestically across nation states involved therein too simultaneously altogether accordingly henceforth thereafter onwards indefinitely until further notice otherwise stipulated elsewhere hereinabove mentioned previously stated beforehand explicitly outlined earlier already discussed prior thereto said aforetime earlier yet again reiterated once more just now currently presently still ongoing continually continuously perpetually eternally forevermore everlasting timelessly endlessly unceasingly uninterruptedly unfalteringly unwaveringly steadfastly resolutely firmly determinedly persistently tirelessly industriously diligently assiduously conscientiously meticulously scrupulously painstakingly laboriously arduously strenuously vigorously energetically dynamically actively busily fervently zealously passionately enthusiastically eagerly keenly avidly ardently earnestly sincerely genuinely wholeheartedly devotedly dedicatedly committed loyally faithfully staunch loyalist true blue steadfast supporter advocate champion defender protector guardian custodian caretaker steward overseer supervisor manager director executive officer administrator leader head chief boss superior foreman superintendent principal dean rector provost chancellor president chairman chairwoman chairperson vice-president deputy assistant associate junior senior elder master mentor tutor coach guide instructor teacher trainer educator lecturer professor scholar academician intellectual thinker philosopher sage guru oracle prophet visionary seer mystic shaman healer therapist counselor advisor consultant expert specialist authority pundit commentator analyst critic reviewer evaluator assessor appraiser judge arbitrator mediator negotiator intermediary broker agent representative envoy emissary ambassador diplomat plenipotentiary legate delegate proxy surrogate stand-in substitute alternate replacement successor heir inheritor beneficiary recipient awardee grantee donee transferee acquirer purchaser buyer client customer patron subscriber member user participant attendee visitor guest invitee caller applicant candidate nominee entrant competitor contender challenger rival adversary opponent foe enemy antagonist combatant belligerent warrior fighter soldier trooper marine sailor airman pilot aviator astronaut cosmonaut spaceman explorer adventurer traveler wanderer nomad rover drifter vagabond wayfarer pilgrim seeker searcher quester pursuer hunter trapper fisher angler catcher snarer netter fowler falconer hawker poacher outlaw bandit brigand pirate buccaneer corsair marauder raider plunderer looter pillager robber thief burglar pickpocket shoplifter mugger carjacker hijacker kidnapper abductor captor jailor gaoler warden guard sentry sentinel watchman patrolman policeman constable officer detective inspector investigator sleuth gumshoe private eye dick shamus tec spy secret agent operative undercover plant mole informant whistleblower turncoat traitor betrayer defector deserter apostate renegade rebel insurgent revolutionary subversive agitator provocateur instigator inciter fomentor ringleader mastermind architect engineer planner designer creator originator inventor innovator pioneer trailblazer pathfinder groundbreaker harbinger herald precursor forerunner vanguard avant-garde front-runner leader pacesetter trendsetter pace-setter pace-maker pacemaker frontrunner trail-blazer trend-setter ground-breaker pace-setter pace-maker pacemaker front-runner leader pacesetter trendsetter pace-setter pace-maker pacemaker frontrunner trail-blazer trend-setter ground-breaker pace-setter pace-maker pacemaker front-runner leader pacesetter trendsetter pace-setter pace-maker pacemaker frontrunner trail-blazer trend-setter ground-breaker pace-setter pace-maker pacemaker front-runner leader pacesetter trendsetter pac