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How important are small businesses to our economy?
Small businesses…
-Employ about half of all private sector employees
-Pay more than 45% of total U.S. private payroll
-Have generated 60 to 80% of net new jobs annually over the last decade
-Create more than half of non-farm private gross domestic product (GDP)
-Supplied 22.8% of the total value of federal prime contracts in FY 2005
-Hire 40% of high tech workers (such as scientists, engineers, and computer workers)
-Are 52% home-based and 2% franchises
-Made up 97% of all identified exporters and produced 28.6% of the known export value in FY 2004
-Small innovative firms produce 13 times more patents per employee than large patenting firms, and their patents are twice as likely as large firm patents to be among the one percent most cited.
(Source: U.S. Dept. of Commerce, Bureau of the Census; Advocacy-funded research by Kathryn Kobe, 2007 (www.sba.gov/advo/research/rs299tot.pdf); Federal Procurement Data System; Advocacy-funded research by CHI Research, 2003 (www.sba.gov/advo/research/rs225tot.pdf); U.S. Dept. of Labor, Bureau of Labor Statistics, Current Population Survey; U.S. Dept. of Commerce, International Trade Administration.)
