<<Back to Article National Association of Government Contractors www.governmentcontractors.org Small Business Frequently Asked Questions (FAQ) Jan 1, 2005 How many small businesses exist today? Small businesses represent 99.7 percent of all employer firms. How many people are employed by small businesses? Small businesses employ half of all private sector employees. Over the past decade, small business net job creation fluctuated between 60 and 80 percent. What do small businesses contribute to GDP? Small businesses generate more than 50 percent of the nonfarm private gross domestic product (GDP). How successful are small business start-ups? Two-thirds of new employer establishments survive at least two years after start-up, and 44 percent survive at least four years. In 2004, an estimated 580,900 employer firms opened while an estimated 576,200 closed. What is the cost for small business to comply with federal regualtions? Very small firms with fewer than 20 employees spend 45 percent more per employee than the largest firms to comply with federal regulations. How many small businesses are minority-owned? Minorities own 4.1 million firms that generate $694.1 billion in revenues and employ 4.8 million workers. How many small businesses are women-owned? Women own 6.5 million businesses that generate $950.6 billion in revenues, and employ 7.2 million workers. Article URL: http://www.governmentcontractors.org/articles/a.190.asp © Copyright 2005-2008 The National Association of Government Contractors