Google Answers Logo
View Question
Q: Micro-Businesses ( Answered 5 out of 5 stars,   1 Comment )
Subject: Micro-Businesses
Category: Business and Money > Small Businesses
Asked by: jallen62-ga
List Price: $40.00
Posted: 12 Apr 2005 08:48 PDT
Expires: 12 May 2005 08:48 PDT
Question ID: 508349
I need to know what percentage of US companies are micro-businesses (5
employees or less). I also need to know if that percentage is
projected to increase or decrease over the next 3 years.
Subject: Re: Micro-Businesses
Answered By: bobbie7-ga on 12 Apr 2005 12:21 PDT
Rated:5 out of 5 stars
Ninety percent of all U.S. businesses employ fewer than five workers. 

?According to an analysis of Census Department data performed last
year by the Center for Women's Business Research, ninety percent of
all U.S. businesses employ fewer than five workers, making them
microbusinesses. In addition, 63% of all U.S. businesses earn less
than $50,000 in annual revenues. New York State, along with California
and Texas, has one of the largest populations of these microbusinesses
in the nation, according to statistics published by the U.S. Small
Business Administration, Office of Advocacy.?

The MicroEnterprise Journal

From The Microbusiness Research Institute:

?Commerce Department data has shown that 90% of all businesses in the
country are very small, with fewer than five employees.?

?There are about 25 million businesses in the United States. 

More than 22.5 million of them are microbusinesses. 

Microbusinesses are the smallest of small businesses -- non-employers
and firms with fewer than five workers.?

The MicroEnterprise Journal

Microbusinesses By the Numbers

According to figures released in 2005 by the Office of Advocacy, U.S.
Small Business Administration:
?- Companies sized 10 employees or less make up 94.7% of all U.S.firms
while businesses of 500+ only account for 0.07% of all firms and are

?Most of these businesses not only start small, they stay small.
According to the most recent statistics available from the Census
Bureau, 75% of the small businesses in the country are non-employer
businesses ? economic entities that consist of a sole owner/worker
with a product or a service and little else. Further data available
from the Office of Advocacy shows that 90% of all U.S. businesses
(including publicly traded firms) employ between zero and four
workers, making them microbusinesses.?

The MicroEnterprise Journal


Microbusinesses will continue to grow

 ?Jobs with larger U.S. firms will continue to flow out of the
country, but American workers need not despair. The nation?s smallest
businesses will take up the slack, employing 85% of the nation?s
workforce by 2024, predicts Dawn Rivers Baker, editor of The
MicroEnterprise Journal.?

(. . .)

?Currently, the nation?s small businesses employ a little more than
half of the U.S. workforce and 90% of all U.S. businesses are
microbusinesses. Baker believes that, as more jobs with large
employers leave the country, the share of the American workforce that
is employed by microbusinesses will continue to grow.?

Career Search:February 20, 2004

There is an increased importance of the microbusiness in the overall
U.S. economic picture.

?Microbusinesses, small firms which employ fewer than 5 workers and
typically require less than $35,000 in initial capitalization,
routinely earn revenues that average less than $50,000 per year.?

(. . .)

?Ninety percent of all U.S. businesses are microbusinesses. These very
small firms operate in every sector of the economy, from retail to
manufacturing, giving them the collective potential to significantly
impact the U.S. economy.?

?In addition, business and workplace trends are pointing to an
increased importance of the microbusiness in the overall U.S. economic
picture. In the last 25 years, self-employment has grown by almost
300%, fueled by waning employee loyalty and growing worker
dissatisfaction. With company size declining across the board, the
Information Economy is looking increasingly like the Age of Small.?

The MicroEnterprise Journal

Microbusiness Numbers Continue To Climb 

From The MicroEnterprise Journal's Weekly News Briefs for March 7, 2005:

?It's time to take our annual look at the numbers, as the SBA's Office
of Advocacy provided us with updated firm size class data last week.
In addition to the usual curiosity as to whether and how much
microbusinesses increased their numbers, this data has an added
element of interest as the first post-9/11 snapshot of which firms
survived that upheaval.?

For complete coverage of this story and more, subscribe to The
MicroEnterprise Journal here:

Search criteria:
Microbusiness numbers
Microbusinesses in the U.S.
Percent of Microbusinesses in the United States
Microbusiness statistics

I hope this is helpful.

Best regards,
jallen62-ga rated this answer:5 out of 5 stars
Perfect! Just what I needed. Thanks.

Subject: Re: Micro-Businesses
From: optimummotorworks-ga on 16 Apr 2005 07:13 PDT
Wow...that is some really great information. This will definately help
in my business. - Optimum Motorworks

Important Disclaimer: Answers and comments provided on Google Answers are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Google does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. Please read carefully the Google Answers Terms of Service.

If you feel that you have found inappropriate content, please let us know by emailing us at with the question ID listed above. Thank you.
Search Google Answers for
Google Answers  

Google Home - Answers FAQ - Terms of Service - Privacy Policy