Statistics about small businesses and their importance to the U.S. economy

Here are some interesting statistics on the importance of small businesses to the U.S. economy:

Small businesses contribute about 50% of the U.S. gross domestic product.

Two-thirds of new jobs are created by small businesses.

Financial industry spending on the small business market is expected to grow at 12.8% annual rate through 2009, according to the Tower Group.

89% of all U.S. businesses have less than $1 million in annual sales.

Millions of business have fewer than five employees, including 67% of service businesses and 60% of all retail.

Growth businesses — defined as growing 25% faster than normal — account for 27% of all U.S. businesses.

Nearly half — 46% — of all small businesses use personal payment cards. (Many small businesses fail to separate business and personal expenses, according to research conducted by MasterCard. Want to learn more about why it is important to establish a business credit report separate from personal credit? Click here.)

Source: Benchmarking and Blending: Keeping Watch on Both Details and the Big Picture — March 2008

Business Credit Tip

If you're a sole proprietor or a business owner with fewer than 20 employees, your personal and business credit scores are closely linked in the eyes of banks and other lenders. So it's important to take steps to protect both. You should monitor, evaluate and protect your credit standing just as you would protect any other business or personal assets. Learn more about protecting your credit.

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