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FAQ / How important are small businesses to the U.S. economy?Small fi rms: • Represent 99.7 percent of all employer fi rms. • Employ about half of all private sector employees. • Pay nearly 45 percent of total U.S. private payroll. • Have generated 60 to 80 percent of net new jobs annually over the last decade. • Create more than half of nonfarm private gross domestic product (GDP). • Hire 40 percent of high tech workers (such as scientists, engineers, and computer workers). • Are 52 percent home-based and 2 percent franchises. • Made up 97.3 percent of all identifi ed exporters and produced 28.9 percent of the known export value in FY 2006. • Produce 13 times more patents per employee than large patenting fi rms; these patents are twice as likely as large fi rm patents to be among the one percent most cited. Source: U.S. Dept. of Commerce, Bureau of the Census and International Trade Administration; Advocacy-funded research by Kathryn Kobe, 2007 (www.sba.gov/advo/research/rs299tot.pdf) and CHI Research, 2003 (www. sba.gov/advo/research/rs225tot.pdf); Federal Procurement Data System; U.S. Dept. of Labor, Bureau of Labor Statistics. |
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