A Small Business QuizSubmitted by Business Owner Succession Strategies | Edina, Minnesota on September 14th, 2021
Small businesses are part of the backbone of the U.S. economy, providing jobs, services, products, and stability for millions of families. But how much do you really know about small businesses? Test your knowledge with our seven-question quiz.
True or False: Small businesses significantly outnumber big corporations.
True! According to the U.S. Small Business Administration (SBA), there are nearly 31 million small businesses in the U.S.1
True or False: Businesses with more than 500 employees are no longer classified as “small businesses.”
True—depending on who you ask. The SBA defines small businesses as any business with under 500 employees.2 But others claim that a small business can have anywhere from 1 to 1,250 employees, depending on the industry.3 The definition of "small business" doesn't center so much on how many employees a business has, but on its structure, revenue, and profit.
True or False: Nearly three in every four small businesses are operated by a single person.
True! Around 24 million of the 31 million—or 75 percent of—small businesses have a single owner-operator. This sets these "nonemployer businesses" apart from corporations, co-ops, partnerships, and other businesses owned and operated by multiple parties.4
True or False: Small businesses only make up 25 percent of U.S. jobs.
False! Small businesses actually account for about 47 percent of the U.S. workforce.5 In other words, nearly one in every two Americans receives their paycheck from a small business.
True or False: Most small business owners work 50 hours a week or more.
False! The majority of small business owners actually only work between 40 and 49 hours per week, with 14 percent of small business owners working less than 40 hours per week.6
True or False: Most small businesses are family-owned.
False! Although family-owned businesses only account for about 20 percent of all small businesses, they're responsible for employing about 60 percent of the total U.S. workforce.7
True or False: Small business is big business in Montana, Vermont, and Wyoming.
True! These three states—along with North and South Dakota, Maine, Idaho, Oregon, New Mexico, and Louisiana—depend on small businesses for more than half of all statewide employment. This means that small businesses dominate the local market in a full 20 percent of U.S. states.8
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
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