How Many Small Businesses Exist in the U.S.? Most Americans Have No Idea, According to a New Survey. Over 80% of Americans misjudge the prevalence of small businesses, according to a new report.
By Sherin Shibu Edited by Melissa Malamut
Key Takeaways
- Digital marketing platform Constant Contact released a report on Wednesday tracking how 8,000 people globally perceive small businesses.
- Less than 20% of U.S. respondents knew that there are 33 million small businesses in the U.S.
Most people feel personally and emotionally connected to the small businesses in their communities, but they underestimate how widespread small businesses are on a broader scale.
That's according to a new report released Wednesday by digital marketing and automation platform Constant Contact. The report gathered responses from over 8,000 people in the U.S., U.K., Canada, Australia, and New Zealand.
Only 19% of U.S. respondents correctly identified that there were 33 million small businesses in the U.S. Many respondents underestimated the number "by millions," the report noted. Meanwhile, more than two in five Americans said they would feel "devastated" if their favorite small business closed.
Constant Contact CEO Frank Vella said the numbers showed most consumers have "a blind spot" in their awareness of the number of small businesses that exist.
Vella told Entrepreneur in an email that small businesses create a "personal" relationship with their customers. Customers aren't just buying a product or service, they're building a relationship.
According to the report, the most popular types of small businesses globally were restaurants, bakeries, grocery stores, retail shops, locally-owned franchises, and personal care or wellness businesses.
"Many of us feel a personal connection to our favorite local businesses, but our research shows a significant awareness gap regarding the prevalence of these businesses," Vella said. "Failing to recognize small businesses and their critical role in our communities and economies creates a blind spot, which makes it easy to overlook their impact."
On a global scale, 40% of consumers said they visit a small business at least once a week, and over 80% agreed that small businesses positively affect their lives.
Customers said they supported small businesses because they enjoyed the quality of products and services, the personal customer service, and the local impact. They also said they chose to shop at small businesses because of the sense of community these establishments provided.
Another small business survey released last month from Goldman Sachs found that most small business owners in the U.S. (69%) are optimistic about the financial health of their businesses, and 78% plan to grow their businesses this year. Of the 1,188 businesses surveyed, nearly half (46%) said they expected to create new jobs this year.
