As of March 2025, the United States maintains a diverse business landscape, with approximately 33.2 million businesses across various industries.
This analysis covers the distribution of these businesses by industry, providing detailed insights into the number of establishments, employment figures, and revenue statistics.
Overview of Business Distribution by Industry
The following table presents a detailed breakdown of the number of businesses, total employment, and annual revenue across major U.S. industries:
| Industry | Number of Businesses | Total Employment | Annual Revenue |
|---|---|---|---|
| Professional, Scientific, and Technical Services | 4,500,000 | 9,000,000 | $2.0 trillion |
| Healthcare and Social Assistance | 2,600,000 | 20,000,000 | $2.5 trillion |
| Retail Trade | 2,900,000 | 16,000,000 | $6.0 trillion |
| Accommodation and Food Services | 1,000,000 | 14,000,000 | $900 billion |
| Manufacturing | 600,000 | 12,000,000 | $2.3 trillion |
| Construction | 700,000 | 7,500,000 | $1.3 trillion |
| Technology | 500,000 | 12,000,000 | $3.0 trillion |
| Financial Services | 600,000 | 8,000,000 | $4.0 trillion |
| Agriculture | 200,000 | 2,600,000 | $136 billion |
| Energy | 300,000 | 6,700,000 | $1.0 trillion |
Note: The figures above are estimates based on available data up to 2024.
Business Industry by Number of Employees in US
In the United States, the structure of businesses varies widely depending on the industry. While small businesses dominate the landscape, a significant number of large enterprises also play a crucial role in shaping the economy.
This section explores the distribution of businesses across the U.S. by employee size, from sole proprietors to large corporations with over 500 employees. By examining industries such as Health Care, Retail, and Manufacturing, we can identify the key sectors where small businesses thrive and where large enterprises make their mark.
These insights are used by policymakers, entrepreneurs, and investors looking to understand the dynamics of U.S. industries and the workforce that drives them.
| Industry | Total Number of Businesses | No Employees (%) | 1-19 Employees (%) | 20-499 Employees (%) | 500+ Employees (%) |
|---|---|---|---|---|---|
| Professional, Scientific, and Technical Services | 4,594,752 | 82.1% | 16.8% | 1.1% | 0.02% |
| Construction | 3,483,077 | 79.0% | 19.2% | 1.7% | 0.01% |
| Real Estate and Rental and Leasing | 3,268,764 | 90.0% | 9.6% | 0.4% | 0.01% |
| Transportation and Warehousing | 3,051,341 | 93.6% | 5.7% | 0.7% | 0.04% |
| Administrative, Support, and Waste Management | 2,946,753 | 88.1% | 10.6% | 1.3% | 0.05% |
| Retail Trade | 2,734,304 | 76.8% | 21.2% | 2.0% | 0.07% |
| Health Care and Social Assistance | 2,723,766 | 75.8% | 20.9% | 3.3% | 0.13% |
| Arts, Entertainment, and Recreation | 1,700,200 | 91.9% | 7.0% | 1.0% | 0.02% |
| Accommodation and Food Services | 1,048,567 | 47.4% | 40.4% | 12.2% | 0.17% |
| Finance and Insurance | 991,851 | 76.2% | 22.3% | 1.6% | 0.11% |
| Educational Services | 990,473 | 90.3% | 7.7% | 2.0% | 0.22% |
| Wholesale Trade | 675,837 | 57.9% | 36.1% | 6.0% | 0.13% |
| Manufacturing | 593,849 | 59.6% | 30.5% | 9.9% | 0.25% |
| Information | 445,353 | 81.7% | 16.0% | 2.3% | 0.13% |
| Agriculture, Forestry, Fishing, and Hunting | 277,390 | 92.1% | 7.5% | 0.5% | 0.02% |
| Mining, Quarrying, and Oil and Gas Extraction | 97,122 | 81.2% | 15.6% | 3.2% | 0.21% |
| Utilities | 20,176 | 70.8% | 23.2% | 6.0% | 0.50% |
Detailed Industry Insights
Professional, Scientific, and Technical Services
This sector encompasses a wide range of services, including legal, accounting, engineering, and consulting. With approximately 4.5 million businesses, it employs around 9 million individuals and generates an estimated $2.0 trillion in annual revenue.
As one of the fastest-growing sectors, healthcare and social assistance include hospitals, clinics, and various social services. The industry comprises about 2.6 million businesses, employing approximately 20 million people, and contributes over $2.5 trillion annually to the economy.
The retail sector, covering both brick-and-mortar stores and e-commerce platforms, consists of roughly 2.9 million businesses. It employs around 16 million individuals and is expected to generate approximately $6.0 trillion in sales in 2024.
This industry includes establishments such as restaurants, bars, and hotels. With about 1 million businesses, it employs around 14 million people and generates annual revenues exceeding $900 billion.
Manufacturing remains a cornerstone of the U.S. economy, with approximately 600,000 businesses employing around 12 million individuals. The sector generates more than $2.3 trillion annually, with key industries including automotive, aerospace, electronics, and machinery manufacturing.
The construction industry, essential for infrastructure development and housing, comprises about 700,000 businesses. It employs approximately 7.5 million people and generates around $1.3 trillion annually.
The technology sector is one of the most dynamic and innovative, driving significant economic growth. It includes approximately 500,000 businesses, employs around 12 million individuals, and generates over $3.0 trillion annually.
The financial services sector, encompassing banking, insurance, and investment services, consists of about 600,000 businesses. It employs around 8 million people and generates approximately $4.0 trillion annually.
Agriculture, while smaller in comparison to other sectors, is critical for food production and exports. It includes approximately 200,000 businesses, directly employs about 2.6 million people, and generates around $136 billion annually.
The energy sector is crucial for powering the economy and supporting other industries. It comprises about 300,000 businesses, employs approximately 6.7 million individuals, and generates over $1.0 trillion annually.
Trends in the Number of Businesses in the USA
The United States has experienced notable fluctuations in business formation over the past decade, influenced by economic conditions, technological advancements, and societal shifts.
Pre-Pandemic Growth (2015–2019)
Between 2015 and 2019, the U.S. saw a steady increase in new business formations:
2015: Approximately 2.8 million new business applications were filed.
2016: This number rose to around 3.0 million, marking a 7.1% increase.
2017: New business applications grew by 6.7% to 3.2 million.
2018: Applications increased by 9.4% to 3.5 million.
2019: The trend continued with 3.5 million applications, maintaining the growth trajectory.
This period of consistent growth reflects a robust economy fostering entrepreneurial ventures.
Pandemic Surge (2020–2021)
The onset of the COVID-19 pandemic in 2020 brought unprecedented challenges but also spurred entrepreneurial activity:
2020: New business applications surged by 25.7% to 4.4 million.
2021: The upward trend continued with a 22.7% increase, reaching 5.4 million applications.
This surge is attributed to factors such as job losses, shifts to remote work, and the pursuit of new opportunities during economic uncertainty.
Post-Pandemic Trends (2022–2024)
Following the initial surge, business formation trends evolved:
2022: A slight decline of 7.4% brought new applications to 5.0 million.
2023: Applications rebounded, increasing by 8.7% to a record 5.5 million.
2024: The total number of small businesses reached 34.8 million, marking a 4.5% annual increase.
This period indicates a stabilization and sustained interest in entrepreneurship, with numbers remaining significantly higher than pre-pandemic levels.
Survival Rates and Challenges
Despite the increase in new business formations, survival rates present challenges:
First-Year Closure: Approximately 20% of new businesses close within their first year.
Five-Year Survival: About 50% of businesses survive beyond five years.
Ten-Year Survival: Roughly 30% remain operational after a decade.
These statistics underscore the inherent risks of entrepreneurship and the importance of resilience and adaptability.
Regional Variations
Certain states have experienced significant growth in business formations:
- Texas: Ranked among the top states for entrepreneurs, Texas has seen its registered businesses nearly double over the past decade, reaching approximately 2.9 million entities.
In summary, the U.S. business landscape has undergone significant changes over the past decade, with a notable surge in new business formations during the pandemic and sustained growth in subsequent years. However, the challenges associated with business survival highlight the need for strategic planning and support for new enterprises.
