What is a “small” business?

Small business is a broad term, often defined as a firm employing up to 500 people. There are approximately 32 million small businesses in the United States that fall under this definition, of which one in five are owned by people of color. Among all small businesses, 89 percent have fewer than 20 employees and generate almost all of the nation’s economic activity. Approximately four million “micro-businesses” with fewer than 10 employees make up three-fourths of the nation’s private-sector employers.

SBAN’s focus is on neighborhood small businesses, which typically range from one to 20 employees and are most vulnerable to displacement.

For more on small businesses, see our Research.