--- title: "How much of the economy do small companies make up? (96–99%) | The AI at Work Fact Book" description: "Companies under 50 people are 96 to 99 percent of businesses and employ 26 percent of US employer-firm workers and 47 to 48 percent in the EU and UK. Official statistics." url: "https://evy.so/facts/small-companies-share-of-economy/" last_updated: "2026-10-16" --- F-28 · Small Teams # How much of the economy do small companies make up? Companies with fewer than 50 people are 96 to 99 percent of all businesses in the US, EU and UK. They employ about a quarter of US employer-firm workers (26 percent) and nearly half of people working in the EU and UK business economy (47 to 48 percent, counting the self-employed). 96–99% of businesses have fewer than 50 people; they employ 26% (US) to 48% (EU) of workers - High confidence - 4 primary sources - 2025 to 2026 - Last checked October 14, 2026 ## Cite this EVY (2026). How much of the economy do small companies make up? The AI at Work Fact Book, F-28. https://evy.so/facts/small-companies-share-of-economy/ (last checked October 14, 2026). CC BY 4.0. Copy citation [Data as JSON](https://evy.so/facts/small-companies-share-of-economy.json) [Markdown](https://evy.so/facts/small-companies-share-of-economy.md) ## How to read it Definitions decide the answer. The US Census count covers only firms with paid employees; the EU and UK figures include self-employed owners and one-person firms. That is why the employment share of firms under 50 runs from 26% (US employer firms) to 47 to 48% (UK and EU). The common claim that small businesses employ half of US workers uses the official US definition of small: fewer than 500 employees. ## Every study on one scale Shaded: 96–99% One figure Chart values as text - Scale: % of businesses with fewer than 50 people. Shaded range: 96–99%. - US Census, employer firms (2025): 96.1% (26% of jobs) - SBA, all US firms (2026): 99.3% incl. no-employee firms - Eurostat, EU (2026): 99.1% (48% of jobs) - UK government (2025): 99.2% (47% of jobs) **Why high confidence:** Four official sources built from business registers agree closely on the share of firms. Employment shares differ widely, but the reasons are known: whether the self-employed and one-person firms are counted, and different size cutoffs. ## Sources Sources for F-28 | Study | Creator | Year | Sample | Method | Figure | Link | | --- | --- | --- | --- | --- | --- | --- | | 2022 SUSB Annual Data Tables by Enterprise Employment Size | US Census Bureau (Statistics of US Businesses) | 2025 | All 6.4 million US employer firms, 2022 (released April 2025, the latest year) | Official counts from the Business Register; firms with no employees are excluded. Shares are our arithmetic from the size rows. | Firms under 50 employees: 96.1% of employer firms, 25.6% of their employment (34.8 million people); under 10 employees: 79.2% of firms | [census.gov ↗](https://www.census.gov/data/tables/2022/econ/susb/2022-susb-annual.html) | | Frequently Asked Questions About Small Business (February 2026) | US Small Business Administration, Office of Advocacy | 2026 | All US firms including 29.8 million businesses with no employees, 2022 data | Official compilation. Defines small business as fewer than 500 employees; the under-50 share is our arithmetic. | Firms under 500 employees: 99.9% of all firms and 45.9% of private-sector employees; including firms with no employees, firms under 50 are about 99.3% of all firms “45.9% of private sector employees (62.3 million workers)” | [advocacy.sba.gov ↗](https://advocacy.sba.gov/wp-content/uploads/2026/02/FINAL_FAQsAboutSmallBusiness_2026_012826.pdf) | | Enterprise statistics by size class (dataset sbs\_sc\_ovw) | Eurostat (Structural Business Statistics) | 2026 | All 33 million active enterprises in the EU business economy, 2023 | Official statistics from business registers. Persons employed include working owners. Excludes agriculture and the public sector. | Enterprises under 50 persons employed: 99.1% of enterprises, 48.3% of persons employed, 34.9% of value added | [ec.europa.eu ↗](https://ec.europa.eu/eurostat/databrowser/view/sbs_sc_ovw/default/table) | | Business population estimates for the UK and regions 2025 | UK Department for Business and Trade | 2025 | All 5.7 million UK private-sector businesses, start of 2025 | Official statistics in development; includes sole proprietors and partnerships without employees | Businesses with 0 to 49 employees: 99.2% of businesses, 47% of employment, 34% of turnover; 75% of all businesses have no employees “there were 5.64 million small businesses (with 0 to 49 employees), 99.18%” | [gov.uk ↗](https://www.gov.uk/government/statistics/business-population-estimates-2025/business-population-estimates-for-the-uk-and-regions-2025-statistical-release) | Output ## How much do small companies produce? EU firms under 50 people produce 35% of the business economy's value added (2023), and UK businesses under 50 account for 34% of turnover (2025). Using the US definition of small business (under 500 employees), small firms produce 43.5% of US GDP, according to the SBA. ## Numbers you may have seen These figures circulate widely. Here is what the original source says. - **Small businesses employ half of all American workers.** Firms under 500 employees employ 45.9% of private-sector workers (2022). Firms under 50 employees employ 25.6% of employer-firm workers. - **99.9% of US businesses are small.** It counts firms under 500 employees and includes 29.8 million businesses with no employees. Among firms with employees, 96.1% have fewer than 50. - **SMEs provide 60% of jobs.** That counts firms with up to 249 employees. For companies under 50 people it is about 26% (US employer firms) to 47 to 48% (UK, EU). ## More from Small Teams - [F-29**20–46%**What share of small businesses use AI, and for what?](https://evy.so/facts/small-businesses-using-ai/) - [F-30**13–38 pts**How does AI adoption differ by company size?](https://evy.so/facts/ai-adoption-by-company-size/) - [F-31**54–63%**What stops small companies from adopting AI?](https://evy.so/facts/what-stops-small-companies-adopting-ai/) - [F-32**65–78%**Do small firms that use AI see gains?](https://evy.so/facts/small-firms-gains-from-ai/) - [F-33**45–52 h**How many hours do small business owners work, and how much goes to admin?](https://evy.so/facts/small-business-owner-hours/) [The whole chapter](https://evy.so/facts/small-teams/) · [Chapter poster](https://evy.so/facts/small-teams/sheet/) · [All of The AI at Work Fact Book](https://evy.so/facts/)