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Most small businesses employ ______.

1) between 500 and 700 people
2) more than 700 people
3) fewer than 20 people
4) between 20 and 99 people
5) between 100 and 499 people

User Cong Chen
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Final answer:

Most small businesses in the U.S. employ fewer than 20 people, with many falling into the category of 'non-employer' businesses with no formal wage or salary structure.

Step-by-step explanation:

Most small businesses employ fewer than 20 people. When analyzing the structure of firms in the U.S. economy, it's evident that the perception of businesses is often skewed towards large corporations like Wal-Mart, Microsoft, or General Motors. However, the reality is that the vast majority of American firms are considerably smaller. As of 2010, statistics from the U.S. Census Bureau indicate that there are around 5.7 million firms with employees, and most of these are on the smaller end of the scale. These small-scale businesses encompass a vast array of services including professional services like dentists and lawyers, as well as maintenance services such as lawn mowing and house cleaning.

It is also important to note that there are many small "non-employer" businesses that aren't represented in these figures, which consist of single owners or partnerships that earn income directly from the business without a conventional wage or salary structure. This further indicates the prominence of small-scale entrepreneurship within the private sector.

User Chewy
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