Future Business Leaders of America (FBLA) Business Management Practice Test

What percentage of businesses in the United States are classified as small businesses?

1. 45

2. 67

3. 90

4. 98

The correct answer is: 98

The classification of businesses in the United States reveals that around 98% are small businesses. This high percentage underscores the significance of small businesses in the nation's economy, as they play a crucial role in job creation, innovation, and community development. Small businesses are typically defined as entities with fewer than 500 employees, according to the Small Business Administration (SBA). The prevalence of small enterprises highlights the diversity and dynamism within the business landscape, as these businesses often cater to niche markets and local needs. Their contributions extend beyond economic metrics, as they foster entrepreneurship and contribute to the cultural fabric of communities across the country. Overall, understanding the dominant presence of small businesses in the U.S. economy is essential for recognizing their impact on overall economic health and employment levels.