Small businesses drive the U.S. economy. Companies with less than 500 employees account for 44% of the country’s total economic activity, employ 61.7 million Americans (46% of the total private workforce), and created 63% (17.3 million) of all new jobs since 1995. It’s no wonder that the Biden-Harris administration wants to tune this economic engine as well as possible.
Last year, the Biden-Harris administration surpassed its small business contracting goal by 28.4%, the highest level of federal partnership with the sector ever. This amounted to a $178.6 billion investment in the country’s small businesses. The White House also invested $50 million in 10,000 small businesses through the American Rescue Plan.
A huge headwind for many small business owners over the last few years has been inflation. However, since passing the Inflation Reduction Act in 2022, national inflation has fallen from a high of 8.3% to 2.9% in 2024. It’s no wonder that 17 million new small business applications were filed under the Biden-Harris administration.
Sources
- https://advocacy.sba.gov/2023/03/07/frequently-asked-questions-about-small-business-2023/#:~:text=Most%20businesses%20are%20small%2D%2099.9,46.4%25%20of%20private%20sector%20employees.
- https://www.forbes.com/councils/forbesbusinesscouncil/2022/03/25/how-small-businesses-drive-the-american-economy/
- https://www.marketwatch.com/story/bidens-small-business-boom-may-undercut-trumps-economic-edge-41030fa3
- https://www.sba.gov/article/2024/04/29/biden-harris-administration-awards-record-breaking-178-billion-federal-procurement-opportunities
- https://www.sba.gov/article/2024/04/11/new-small-business-applications-soar-over-17-million-under-biden-harris-administration
