The Backbone of America: Why Small Businesses Drive the Economy

Small businesses are the backbone of the American economy. With over 33 million small businesses in the U.S., they account for 99.9% of all businesses and employ nearly 62 million people—almost half of the private-sector workforce. Their role in economic growth, job creation, and innovation cannot be overstated.

One of the most significant contributions of small businesses is employment. According to the U.S. Small Business Administration (SBA), small businesses created 63% of new jobs between 1995 and 2021. This makes them a critical driver of job opportunities in local communities, fostering financial stability and upward mobility.

Beyond employment, small businesses are innovation hubs. They produce 16 times more patents per employee than larger firms, fueling advancements across industries. Whether it's a local artisan introducing a unique product or a tech startup revolutionizing an industry, small enterprises often pave the way for groundbreaking ideas.

Economically, small businesses generate nearly 44% of U.S. GDP, demonstrating their substantial impact on national productivity. They also enhance economic resilience—local businesses reinvest 68% of their revenue back into the community, compared to 43% from larger corporations. This means that dollars spent at small businesses circulate locally, strengthening regional economies.

Despite their contributions, small businesses face challenges, from securing funding to navigating market competition. That’s where firms like Promontory Capital Holdings LLC step in—providing capital, strategic guidance, and operational expertise to help these vital businesses scale and thrive.

At Promontory Capital Holdings, we recognize that investing in small businesses isn’t just about financial returns—it’s about sustaining the heartbeat of the American economy. By empowering entrepreneurs, we help fuel innovation, create jobs, and strengthen communities.

If you’re a small business owner looking to secure your firm’s future, leave a lasting legacy, and ensure your company continues making a positive impact on the U.S. economy, consider reaching out for a confidential discussion about selling your business. Promontory Capital Holdings is here to help you navigate this transition while preserving what you've built. Contact us today.