According to the US Small Business Administration, small businesses are defined as firms with fewer than 500 employees. The number of small businesses in the US has been increasing steadily, with 33.2 million small businesses in the US as of 2022, making up nearly all (99.9 percent) US businesses. In 2021 alone, a record-breaking 5.4 million new business applications were filed, and nearly as many (5.1 million) were filed in 2022. California has the highest number of small businesses, with 4.2 million small businesses, followed by Texas with 3.1 million, Florida with 3 million, New York with 2.3 million, and Illinois and Georgia with 1.2 million.
The COVID-19 pandemic had a significant impact on small businesses in the US, with nearly 90% of small businesses reporting a large or moderate negative impact of the pandemic at the end of April 2020. However, the stack of outstanding loans to SMEs increased sharply in 2020driven in part by new lending as well as the introduction of other liquidity support measures, such as debt moratoria.
Overall, the SME market in the US is growing, with a large number of new businesses being created each year. However, the COVID-19 pandemic and its overhang have had a significant impact on small businesses, and it remains to be seen how the market will continue to evolve in the coming years.
July 26, 2024
Photo by vackground.com on Unsplash