The more than 33 million small businesses in the United States play a critical role in innovation, job creation and economic resilience. They also present unique challenges, such as limited resources and higher vulnerability to market changes. To help ensure that these important companies can thrive, it’s important for organizations like chambers of commerce and economic development agencies to have access to accurate, relevant data. The Census Bureau’s Business Counts program provides vital information about small businesses to support efforts to help them succeed.
A small business is a privately owned company typically defined by its revenue, number of employees or both. They can range from solo entrepreneurs and family-run shops to growing companies with hundreds of workers. Small businesses are often established as partnerships or limited liability corporations (LLCs). These structures offer flexibility for tax and legal purposes and insulate owners from financial liabilities. They may also qualify for government contracts and financial programs.
For example, a company with less than $1 million in annual revenue and fewer than 500 employees can qualify as a small business in the construction industry. These firms can also apply for contracts to provide materials and services for federal, state and local governments.