The Big Impact of Small Businesses

smb economic impact

On the eve of National Small Business Week, Paychex, a provider of payroll and human resources services to small- and medium-size businesses, compiled information to show just what small businesses mean to the economy. The results found that small businesses have anything but a small impact on job growth and economic development.

The data found that an estimated 50 million people are employed by small businesses, a large portion of which (20 million) work at companies with 20 employees or less. Those 50 million workers employed by small businesses equals out to slightly more than one-quarter of the working population of the United States.

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Beyond employing more than a quarter of the population, small businesses also are responsible for generating $11 billion in receipts a year, a number that is higher than the yearly receipts generated by businesses with more than 10,000 employees. Overall, the $11 billion generated by small businesses represents nearly 40 percent of all business receipts in the U.S.

Small businesses are also making a positive impression in their communities in other ways. According to the infographic, 90 percent of small business owners donate money to charitable causes, while 70 percent of small business owners contribute time and money to charity.  

"Small businesses do more than provide services and products; they strengthen and shape our communities, our economy, philanthropic efforts and innovation," said Martin Mucci, president and CEO of Paychex. "As a co-sponsor of National Small Business Week, we are proud to honor the work of America’s small businesses and we look forward to continuing our role as their partner."

National Small Business Week has been celebrated each year since 1963.  This year, the celebration will occur during the week of May 20. Events will take place Sunday through Thursday at the National Small Business Week 2012 Conference in Washington, D.C.  

Reach BusinessNewsDaily staff writer David Mielach at Dmielach@techmedianetwork.com. Follow him on Twitter @D_M89.

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