TRANSFORMATION OF SMALL AND MEDIUM-SIZED BUSINESSES IN THE USA

Abstract

This study analyzes the development of small and medium-sized businesses (SMBs) in the United States over the period 2015–2024. It provides statistical data on the number of small firms in the U.S., their contribution to GDP (43.5%) and employment (45.9% of the private sector workforce), as well as their historical role in creating jobs. The research notes that small firms created approximately nine out of every ten new net jobs between March 2023 and March 2024. The role of SMBs in job creation is examined, with a special emphasis on the growth of the “Gig economy” and the number of non-employer firms. The distribution of small and medium-sized enterprises by sector is studied, demonstrating the dominance of service-oriented industries such as professional, scientific, and technical services, transportation, and construction.
The article investigates the impact of the COVID-19 pandemic, government support through the Paycheck Protection Program (PPP), supply chain crises, and trade tariffs. It notes the devastating financial fragility of many SMBs during the pandemic, as the median firm possessed cash reserves for only two weeks. The subsequent effectiveness of the PPP in preserving jobs and business viability is also highlighted. The cumulative effect of these challenges is examined, emphasizing that policy responses must be systemic rather than isolated. It is shown how these challenges have prompted a fundamental shift toward a focus on supply chain resilience, which is identified as a key trend for the future of SMBs. The article concludes that small and medium-sized enterprises are changing their strategies, prioritizing security and diversification over cost minimization, and fundamentally altering their operational logic in response to a complex and unstable business environment. This new emphasis on resilience is identified as a critical factor for small businesses to remain competitive and sustainable in the coming years.