Many small businesses, both local and national, did not survive the COVID-19 pandemic, and since the initial shutdown in March 2020, Americans have worried about the impact of the pandemic on the economy.
Government legislation for financing small businesses, such as the CARE Act earlier this year, has helped these businesses trying to recover, but how devastated would the country be if these locally owned operations closed?
A new study from Business.org, the research site, has shown how important small businesses are to local economies.
By defining “small businesses” as businesses with fewer than 500 employees, 47.3% of American workers are employed by small businesses. As you can see in the graph above, Pennsylvania is at 46%.
The study used information from U.S. Census Bureau business statistics from 2018.
The author of the article, Kylie McQuarrie, writes: “We hope that data from calculators like ours can help convincingly explain why, if a COVID-related downturn is in our future, small businesses deserve more. financial aid (or, at least, better guarantees) than before. Millions of employees rely on it.
Other conclusions of the study:
- The United States is home to more than six million small businesses that collectively employ more than 61 million people.
- Some states rely more on small businesses for employment than others. Small businesses in Montana employ 67.2 percent of the state’s population, while small businesses in Vermont employ the second highest percentage of people by state at around 60 percent.
- In contrast, small businesses in Florida employ only 41.1% of the population. Small businesses in Arizona, Georgia, and Tennessee also employ about 42% of the population in their respective states.
- If 5% of existing small businesses were to close nationwide, more than three million people would be out of work. If 10% closed, more than six million people would lose their jobs.