Insights

The Big Deal About Small Businesses

November 5, 2025

Across the country, countless individuals want to take their passions, skills, and ideas and build them into something more. Once this spark takes root, the motivation to create a small business has been set in motion. These motivations and passions are incredibly important to the country’s foundation, and there are many reasons why they should be encouraged.

Image Source: U.S. Small Business Administration’s 2025 Small Business Profile

America’s Core

Small businesses are the backbone of the United States. They represent 99.9% of all businesses nationwide, which, according to the U.S. Census Bureau, is about 36.2 million in total. These businesses don’t just help support the economy; they also embody the nation’s entrepreneurial spirit.

Job Opportunities

Becoming an entrepreneur isn’t just about personal success. Creating small businesses also helps create job opportunities for those in the surrounding communities.

Most small businesses employ 1-19 employees with about 5.7 million small businesses falling into this category. There are exceptions, though, with about 654,000 small businesses employing between 20-499 employees. In 2022, it was reported that small businesses employ about 62.3 million employees, and the number has only grown.

Diversity

Entrepreneurship can also clearly represent America’s diversity.

44.6% of small businesses are women-owned, and women make up about 46.9% of small business employees.
16.5% of entrepreneurs are Hispanic and another 18.1% of employees are Hispanic.
Veterans own about 5.3% of small businesses and make up about 4.3% of employees.

Learn About Entrepreneurship

Starting a small business is also one of the best ways to learn about entrepreneurship. When asked, over half of entrepreneurs (51%) said that the best way to learn about business is simply by doing it. Problems will arise that weren’t accounted for, and solutions will come. It’ll teach what needs to be considered and thought through more than any textbook ever could.

Not only will it teach about entrepreneurship, but it will also teach about personal aspects. Creative solutions will need to be made, and confident solutions will form under pressure. Each mistake will be another learning curve that eventually leads to more success in both professional and personal lives.

If location is the last deterrent, just start wherever is available. A brand-new office or big warehouse isn’t necessary in the beginning. 69% of U.S. entrepreneurs start their businesses from their home. Start small and grow. It’s not just normal, it’s smart.

Take the leap, join our nation, and start that small business you’ve always desired!

For more information on what decisions need to be made when starting your own business, see our article “This or That? – New Business Decisions.” Then consider reaching out to a lawyer and an accountant to begin your journey. If you have specific questions, please contact a member of our Entrepreneurial Accounting Solutions (EAS) team.

If you already have a small business and need help preparing for the upcoming 2025 year-end, be sure to check out our recent “What’s In the Rearview Mirror Might Be Closer Than It Appears: 2025 Year-End Planning” webinar. Also be sure to continue along with our team’s 4-part series for National Entrepreneurship Month, as our authors will cover the latest changes business owners should be aware of, including the tax initiatives of the One Big Beautiful Bill Act (OBBBA) and what can be expected.