How to Read SBA Advocacy's Small Business FAQ — Counts, Job Shares, Survival Rates and Their Data Years
SBA Advocacy FAQ 2026 (small = under 500 employees; 2022 Census data): 36,207,130 small businesses (Question 2), 82.3% nonemployers; 45.9% of private sector employees (Question 3).
Key figures (SBA Office of Advocacy, Frequently Asked Questions About Small Business 2026)
As of 9 November 2026, 00:56 KST (retrieved by this page at that time); latest listed on the agency page at retrieval: Frequently Asked Questions About Small Business 2026, from the Office of Advocacy of the U.S. Small Business Administration (SBA). Post date: Feb 3, 2026; PDF cover: February 2026. The previous edition in the same list is the July 2024 edition. Primary source: https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf[1][2][3]
| Indicator (U.S.; small = independent business under 500 employees) | Previous: July 2024 edition (observed) | Current: February 2026 edition | Change vs previous (this page's calculation unless stated) | Change vs year ago: no 2025 edition was listed, so not a separate comparison; this column gives the 2026 FAQ item | Evidence type |
|---|---|---|---|---|---|
| Small businesses (firms) | 34,752,434 (data year 2021) | 36,207,130 (data year 2022) | +1,454,696 (+4.2%) | Question 2 | SBA Office of Advocacy FAQ 2026 |
| Nonemployer small firms (firms) | 28,477,518 (81.9%) | 29,811,495 (82.3%) | +1,333,977 | Question 2 | SBA Office of Advocacy FAQ 2026 |
| Small employer firms (firms) | 6,274,916 (18.1%) | 6,395,635 (17.7%) | +120,719 | Question 2 | SBA Office of Advocacy FAQ 2026 |
| Large businesses (firms) | 19,688 | 21,041 | +1,353 | Question 2 | SBA Office of Advocacy FAQ 2026 |
| Small business share of private sector employees (% and workers) | 45.9% (59.0 million) | 45.9% (62.3 million) | share unchanged; +3.3 million workers | Question 3 | SBA Office of Advocacy FAQ 2026 |
| Small business share of private sector payroll (% and $) | 39.0% ($3.2 trillion) | 38.7% ($3.5 trillion) | -0.3 points | Question 3 | SBA Office of Advocacy FAQ 2026 |
| Small business share of known export value (% and $) | 34.9% ($541.6 billion) | 33.0% ($588.4 billion) | -1.9 points | Question 3 | SBA Office of Advocacy FAQ 2026 |
| Small business share of net new jobs since 1995 (%) | 61.1% (January 1995 to June 2023) | 61 percent (January 1995 to December 2024) | periods differ; not a like-for-like change | Question 6 | SBA Office of Advocacy FAQ 2026 |
| Two-year survival of new employer establishments (%) | 67.9% (1994-2021 average) | 67.7% (1994-2022 average) | -0.2 points; averages over different spans | Question 9 | SBA Office of Advocacy FAQ 2026 |
| Small business share of federal contracting dollars (%) | 26.5% (FY 2022) | 28.8% (FY 2024) | +2.3 points across two fiscal years; goal 23% in both | Question 18 | SBA Office of Advocacy FAQ 2026 |
Comparison basis: counts are as printed; shares are rounded to one decimal in the FAQ. The 2024 values are observed values from the July 2024 edition, reached from the same list. Firm counts come from Census Bureau data for 2022 in the 2026 edition and for 2021 in the 2024 edition, so the change spans one data year, not the 19 months between editions.[1][4]
In three lines
1. Advocacy's FAQ collects headline small business statistics from Census, BLS and other sources in seven pages.
2. It counts 36,207,130 small businesses (Question 2), 82.3% with no employees, and gives them 45.9% of private sector employees (Question 3).
3. Each figure has its own source and period, from 2022 firm counts to a GDP share from 1998-2014 data.[1]
What the FAQ measures
The definition. "The Office of Advocacy generally defines a small business for research purposes as an independent business having fewer than 500 employees." Program eligibility uses SBA's industry size standards instead, which the FAQ does not apply. So large business here means 500 employees or more.[1]
Where the counts come from. "Statistics on the number of small businesses are based on the Census Bureau’s 2022 Statistics of U.S. Businesses (SUSB) and 2022 Nonemployer Statistics (NES), released in 2025 and 2023, respectively." Nonemployer firms are businesses without paid employees; employer firms have at least one.[1]
Net new jobs and firm size. "From January 1995 to December 2024, small businesses created 20.7 million net new jobs while large businesses created 13.2 million (Figure 2)." The FAQ explains why the job share can exceed the employment share: "If they pass the 500-employee mark, their employment gains are classified as large firm employment." Its footnote adds: "Due to regression to the mean and other temporary factors, the percentage of net new jobs associated with small firms would be greater if firms were classified according to their original size."[1]
Paperwork costs. "Federal paperwork collections cost small businesses over $81 billion in 2025." "Over 80% of the paperwork burden for small businesses comes from the Internal Revenue Service alone (Table 1)." Table 1 gives the Internal Revenue Service's cost as $66,037 million; the next numeric column is headed Hours ($Millions) and lists 1,568 for the IRS. The FAQ does not clarify that column's unit.[1]
Cited outside estimates. The manufacturing question cites the National Association of Manufacturers (NAM): "The average U.S. company pays approximately $13,000 per employee yearly to comply with federal regulations." The FAQ also gives over $29,000 per employee per year for manufacturers and an estimated $50,100 for manufacturers with fewer than 50 employees. These are NAM's estimates, cited by Advocacy, and the FAQ does not give their reference year.[1]
Reading in pairs
61 percent or 60%. Question 6 says: "Small businesses have accounted for 61 percent of net new job creation since 1995." The infographic page shows 61% in large type and says: "Small businesses accounted for 60% of net new jobs." Both cite the same January 1995 to December 2024 span. 20.7 / (20.7 + 13.2) gives 61.1% (this page's calculation), so 61 matches the job counts; the 60% sentence is as printed.[1]
A different span in 2024. The July 2024 edition says: "Small businesses have accounted for 61.1 percent of net new job creation since 1995." Its infographic says: "Small businesses accounted for 65.3% of net new jobs." That infographic covers January 2000 to June 2023, while the 61.1% covers January 1995 to June 2023, so the two figures measure different periods rather than conflicting.[1][4]
Firm counts move one data year. "There are 36,207,130 small businesses in the U.S." The 2024 edition said: "There are 34,752,434 small businesses in the U.S." Its counts came from 2021 data: "Statistics on the number of small businesses are based on the Census Bureau’s 2021 Statistics of U.S. Businesses (SUSB) and 2021 Nonemployer Statistics (NES), released in 2023 and 2024, respectively." The 1,454,696 difference (4.2%, this page's calculation) is a change between data years 2021 and 2022.[1][4]
Old base years inside new tables. The GDP share of 43.5% cites Small Business GDP 1998-2014, the same figure as in the 2024 edition; it is not a 2024 or 2025 measurement. Survival rates are averages over 1994-2022, and establishment openings are for 2023.[1]
Veteran ownership on two bases. "Veterans owned 1.7 million, representing 4.8 percent of all businesses in 2022." "However, if businesses owned equally by veterans and partners are also included, veterans own 5.3 percent of all businesses and 6.6 percent of businesses with employees." The 2026 edition counts 273,523 veteran-owned employer firms for 2022; the 2024 edition gave about 304,823 for 2021 from a different table layout. The editions use different data years and tables, and this page does not treat the gap as a measured decline.[1][4]
Percent signs in the legal form answer. "Most non-employers are sole proprietorships (86.7), while 12.3 percent of small employers are organized as sole proprietorships (Table 3)." The 86.7 has no percent sign as printed; Table 3 gives it as a percent of nonemployer firms. Table 3 also notes that its columns may not add to 100 percent because some firms file under more than one legal form.[1]
Dates and next release
Dates kept apart. 2026 edition: post dated Feb 3, 2026; PDF cover February 2026. 2024 edition: post dated Jul 23, 2024; PDF cover July 2024. Data years vary by question, from FY 2024 procurement to 2022 firm counts.[1][2][4][5]
Next release. The FAQ list shows editions for 2021, 2023, 2024 and 2026 and gives no date for the next one, so it is not established.[3]
Verified facts
Each fact is labelled with its evidence typeEach fact in this section carries its evidence type — either cross-checked against independent sources, or confirmed from a single authoritative record.
SBA's Office of Advocacy counts 36,207,130 small businesses in the U.S. (fewer than 500 employees), of which 29,811,495 have no employees and 6,395,635 have paid employees, based on 2022 Census Bureau data.[1] 1 source · authoritative record
Small businesses account for 45.9% of private sector employees (62.3 million workers) and 38.7% of private sector payroll ($3.5 trillion), per the 2026 FAQ.[1] 1 source · authoritative record
From January 1995 to December 2024, small businesses created 20.7 million net new jobs and large businesses 13.2 million.[1] 1 source · authoritative record
In Fiscal Year 2024, 28.8 percent of federal contracting dollars went to small businesses, above the 23 percent goal.[1] 1 source · authoritative record
Statements and readings
Not counted as facts — each item shows what kind of statement it isFrom here on: statements not counted as facts — single-source reports, the issuing body’s own statements, and this page’s own readings, each labeled.
20.7 million small business net new jobs out of 33.9 million in total gives 61.1%, matching the 61 percent in Question 6 rather than the 60% sentence on the infographic page.[1] Stated by the issuing body itself (primary source) · not independently verified · inference from this page's calculation with Question 6
The 65.3% net new jobs figure in the 2024 infographic covers January 2000 to June 2023, a different span from the 61.1% for January 1995 to June 2023, so the two do not conflict.[1][4] Stated by the issuing body itself (primary source) · not independently verified · inference from comparing the July 2024 and February 2026 editions
The rise from 34,752,434 to 36,207,130 small businesses (+4.2%) compares Census data years 2021 and 2022, not the period between the two publication dates.[1][4] Stated by the issuing body itself (primary source) · not independently verified · inference from comparing Question 2 across the two editions
Timeline
What this page could not establish
These are questions this page tried to answer and could not. The gaps are left open rather than filled with a guess.- What unit does the Hours ($Millions) column in Table 1 use?
- Which figure, 61 percent or 60%, does Advocacy intend as its headline net new jobs share?
- When will the next edition appear?
- Model
- claude-opus-5
- Time
- 11/09/2026, 00:55
- Body characters
- 8,136
- Sources
- 5 sources adopted
- Model
- ChatGPT (checked sources on the web)
- Time
- 11/09/2026, 01:25
- Verdict
- Revision required
Show revision history (3)
| 11/09/2026, 09:00 | First authored (claude-opus-5) | Created |
| 11/09/2026 | First version. Read in full the February 2026 and July 2024 editions of Frequently Asked Questions About Small Business, their post pages and the publication list; quotations are complete sentences matched against the source text. | Updated |
| 11/09/2026 | Revised after review: the manufacturers' figure reads over $29,000 per employee per year, as in the source; the Table 1 sentence gives the IRS cost and the 1,568 listed under the column headed Hours ($Millions), whose unit the FAQ does not clarify; the nonprofit answer is limited to Table 3's legal-form categories and marked as this page's reading. | Updated |
Frequently asked
How many small businesses are there in the United States?
36,207,130 in the 2026 FAQ (Question 2), using 2022 Census data: 29,811,495 without employees and 6,395,635 with employees. There are 21,041 large businesses.[1]
What counts as a small business in these statistics?
An independent business with fewer than 500 employees, for research purposes. SBA's industry size standards for loans and contracting are different and are not used in the FAQ.[1]
Does the small employer group include nonprofits?
Table 3 includes nonprofit (6.8%) and government (0.02%) legal-form categories among small employer firms. The FAQ does not establish their counts within Question 2's total of 6,395,635 small employer firms (this page's reading of Table 3).[1]
What share of jobs do small businesses provide?
45.9% of private sector employees, or 62.3 million workers (Question 3). Their share of net new jobs since 1995 is higher, 61 percent; the FAQ explains that a growing firm's job gains count as small firm gains until it passes 500 employees.[1]
How long do new businesses survive?
67.7% of new employer establishments survived at least two years on average over 1994-2022, 49.2% five years, 33.9% ten years and 25.5% fifteen years (Question 9). These are establishment rates from BLS Business Employment Dynamics.[1]
How much do small businesses get from federal contracts?
28.8% of federal contracting dollars in Fiscal Year 2024 (Question 18), above the 23% goal. The Department of Agriculture awarded the highest share among large contracting agencies, 72.9%.[1]
When will the next FAQ be published?
Not established: the FAQ list shows the February 2026 edition as the latest and gives no date for the next one.[3]
Official links
Sources
- [1] Frequently Asked Questions About Small Business, February 2026, PDF primary
- [2] Frequently Asked Questions About Small Business 2026 (Office of Advocacy post) primary
- [3] FAQs About Small Business (Office of Advocacy publication list) primary
- [4] Frequently Asked Questions About Small Business, July 2024, PDF primary
- [5] Frequently Asked Questions About Small Business, 2024 (Office of Advocacy post) primary