WASHINGTON, D.C.- Today, the Office of Advocacy released the 2025 Small Business Profiles for the States, Territories, and Nation. Advocacy is an independent office housed in the U.S. Small Business Administration, and its Office of Economic Research assembles the most recent federal data into a comprehensive snapshot of the small business economy across the country.
According to this year’s release, the U.S. contains 36.2 million small businesses, which account for almost 46 percent of private sector employment. From March 2023 to March 2024, U.S. small businesses created approximately 9 out of every of 10 net new jobs. Small businesses in the U.S. opened 1.1 million new establishments and created a net increase of 1.2 million new jobs. California is the state with the highest number of small businesses, at 4.34 million, followed by Texas (3.52 million) and Florida (3.49 million). Montana is the state with the highest share of employment at small businesses, at 66.3 percent, followed by Wyoming (65.2 percent) and Vermont (62.1 percent).
“Small businesses continue to be the accelerator of the American economy,” said Deputy Chief Counsel Chip Bishop. “Small businesses fuel economic growth, job creation, and supply chain resiliency across the country. Advocacy’s small business profiles document the economic importance of small businesses in every state. We hope policymakers at the state and local level use this data to better understand the role small businesses play across the country and adopt policies that encourage them to flourish.”
The 2025 Small Business Profiles for the States, Territories, and Nation are part of Advocacy’s larger geographic profile series, which highlights the features of small business economies for the public, policymakers, and other stakeholders at the national, state, and local levels.
Visit the Office of Advocacy’s website to view the Small Business Profiles for various geographical areas. View the Regional Advocates page to engage with the Regional Affairs team.
Created by Congress in 1976, the Office of Advocacy of the U.S. Small Business Administration is an independent voice for small business within the federal government. Appointed by the President and confirmed by the U.S. Senate, the Chief Counsel for Advocacy directs the office. The Chief Counsel advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policymakers. Economic research, policy analyses, and small business outreach help identify issues of concern. Regional Advocates and an office in Washington, DC, support the Chief Counsel’s efforts. For more information on the Office of Advocacy, visit advocacy.sba.gov, or call (202) 205-6533.