Fact-check · Oct 20, 2026
“Small businesses create 40% of all economic activity in The United States”
MOSTLY TRUE
What the record shows
SBA and Census data show small businesses (firms with <500 employees) account for approximately 43.5–48% of private-sector economic output and employment, depending on definition and year. The 40% figure is within the commonly cited range but on the conservative end.
Small business contribution to GDP is typically cited as 40–48% depending on definition and data source; 40% is a reasonable approximation.
Vote Unbiased checks what officials say against government data — BLS, BEA, Census, Treasury, the Fed — with sources cited. Every speaker, every party, same standard. See the data →