Business Statistics

Small businesses are defined by the Office of Advocacy at the U.S. Small Business Administration (SBA) as having 500 employees or less. The SBA estimates there were 29.6 small million businesses in the U.S. in 2008.

Effect Of Small Businesses On United States Economy

Small businesses are a key part of the American economy. According to various government organizations, small businesses in the U.S.:

• Employ over half of all non-government employees.
• Account for 44 percent of total American private payroll.
• Produce over 50% of the nonfarm private GDP
• Hire 4 of 10 of high tech workers in the country

Employee retention is a measure of the rate at which employees remain at a firm over a given period. It can be problematic for a firm if it has low employee retention due to employees voluntarily leaving. This requires the firm to spend extra money hiring and training new employees.

Retention rates are correlated with unemployment rates. When unemployment is high, employees are more likely to stay at their current job because it is difficult to find work elsewhere.