Contributions of Small Businesses

May 5th, 2006

The National Federation of Independent Business (the nation’s largest small-business advocacy group) has released some interesting statistics about the role of American small businesses:

America’s No. 1 job creator

99.7% of all employer firms

50% of all private sector employees

60-80% of net new jobs annually over the last decade

45% of total U.S. private payroll

Powerful Voice in Public Affairs/Politics

95% of small-business owners are registered to vote

84% usually do vote

3% run for office

Steady Sector of the American Work Force

46% of employers intend never to fully retire

23% plan to retire at 65+ (Of those, 50% at 70 or older)

60% of those intending to retire expect to phase-out gradually

Contributor to Local Community

91% of small-business owners contributed in the last year through volunteering, in-kind contributions, and/or direct cash donations

About 41% contributed all three ways

The average value of contributions is $6,600 per small employer (including noncontributors!) – roughly $40 billion in total