Commercial Business

Small Businesses: The Lifeblood of the American Economy

Small Businesses: The Lifeblood of the American Economy

May 08, 2024 | David Adams

The 2024 financial market leaves many in a state of uncertainty except for a certain bright spot: small businesses. This Small Business Month, we are sharing why small businesses are the lifeblood of the American economy. Small businesses provide optimism and examples of resiliency.

Small Business Statistics Signal Opportunity

  • In 2023, businesses filed 5.5 million new applications. A record-breaking number. 3

  • Individuals filed 435,629 business applications in March 2024. 5

  • As of the Q1 2024 Small Business Index, 80% of small businesses report they have a plan if they begin to struggle. Up 13 percentage points from Q4 2020. 6

  • As of Q1 2024, 67% of small businesses expect next year’s revenue to increase. 7

  • 76% of small businesses in the professional services sector state their business is in good health. As of Q1 2024 Small Business Index, that’s more than any other industry. 7

The Small Business Impact

Did you know that:

  • 99.9% of businesses in the U.S. are small businesses. 1

  • Small businesses employ almost half of all American workers. 1

  • 8 in 10 small businesses achieved their 2023 business goals. 2

  • 4 out of 10 of small businesses today rely on large banks for lending needs, compared to 7 out of 10 in 2020. 1

  • Only 42% of small businesses report they receive the financing they need. 1 

What does all this mean for lenders? Using the right data, analytics, and technology, can unlock innovative, financially inclusive opportunities that move more small businesses forward.

How Small Businesses Choose Their Lenders and Service Providers

Small businesses want to work with businesses who offer them the most favorable terms and conditions. However, small business owners also seek institutions that give them confidence. Confidence that their loan will get approved. Confidence that their services won’t go down. Confidence their partners will be there when they need them. 4

This creates a unique opportunity for businesses to combat the gap between successful small businesses and the 38% that fail because they do not establish the credit and services they need to succeed. 1

Small businesses have specific considerations when choosing lenders and services providers. Here’s how you can stay ahead of the competition:

● Leverage community ties. Deepen relationships to learn about the finances and needs of small businesses. This will help you gain trust and grow your portfolios.

● Don’t underestimate the power of data. Emphasize  transformational data. It can help you to translate insights into actionable client information. Ultimately helping streamline your decision-making process, reduce risk, and provide better customer service.

● Be proficient. Explore new, innovative technologies entering the market, which demonstrate efficient processes that may help reduce costs and accelerate approvals.

Moving Small Businesses Forward

The stats show we are seeing growth in the small business landscape. Here are some tools to keep you ahead of the opportunities:


  1. Small Business Statistics of 2024, Forbes

  2. Small Business Owners Are Optimistic for Growth in 2024, U.S. News & World Report

  3. Map: New Business Applications Surge Across the Country, U.S. Chamber of Commerce

  4. How to choose the best small business lender, Bankrate 

  5. Business Formation Statistics-Monthly Geographic Visualization, U.S. Census Bureau, April 11, 2024

  6. Small Business Index Q1 2024 Summary & Highlights: Index Remains Steady As Views of the Economy Drift Upwards, U.S. Chamber of Commerce 

  7. Small Business Index Q1 2024 Key Findings: Operations, Environment & Expectations, U.S. Chamber of Commerce

David Adams

David Adams

Head of Commercial Product Marketing

A seasoned technology expert, David Adams has spent his career specializing in SaaS based technology and high growth markets. With Equifax, as the Head of Commercial Product Marketing, David is responsible for the Go-To-Market strategy for the entirety of the commercial portfolio, from marketing, to acquisition to man[...]