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What is a small business?

A small business is one that is independently owned and operated, is organized for profit, and is not dominant in its field. The business may be individually owned, a partnership, a corporation, or any other legal form. When it comes to size, use common sense when trying to determine if the business is a small business. Refer to the U.S. Small Business Administration if you are unsure.








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Small businesses are the backbone of America. According the U.S. Small Business Association they:
  • Represent 99.7 percent of all employer firms.
  • Employ half of all private sector employees.
  • Pay 44 percent of total U.S. private payroll.
  • Generated 65 percent of net new jobs over the past 17 years.
  • Create more than half of the nonfarm private GDP.
  • Hire 43 percent of high tech workers ( scientists, engineers, computer programmers, and others).
  • Are 52 percent home-based and 2 percent franchises.
  • Made up 97.5 percent of all identified exporters and produced 31 percent of export value in FY 2008.
  • Produce 13 times more patents per employee than large patenting firms.