Small Business Drives The U.S. Economy

 

Small business accounts for 50% of U.S. private nonfarm gross domestic product (GDP), according to a study by the Small Business Administration.

 

"This study confirms the vital role of small businesses in the U.S. economy," says Bruce Josten, U.S. Chamber executive vice president, Government Affairs. "We must make sure that government policies are shaped to help small businesses do what they do best-innovate, create jobs, and grow the economy."

 

The study, which compiled data on 16 industry sectors from 1998 to 2004, found strong small business growth in health and social services, arts and entertainment, and food services. 2004 data are the most recent available.

 

According to the study, small business contributions amounted to more than 50% of GDP in 5 of the 16 sectors and more than 80% of output in 2 sectors-construction and "other" services. SBA defines "other" as such things as equipment repair and dry cleaning. Small business share of total GDP peaked at 50.7% in 2004.